Finance
Home Mortgage Disclosure Act (HMDA) requires lenders to collect and report data on mortgage applications to:
ADetermine average mortgage rates by ZIP code
BIdentify potential discriminatory lending patterns (redlining)✓ Correct
CSet maximum loan limits for conforming mortgages
DCalculate lender reserve requirements
Explanation
HMDA requires lenders to collect and report data on mortgage loan applications, approvals, and denials by race, income, and location. This data is used to identify potential discriminatory lending (redlining) and geographic lending patterns.
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