Finance
The Home Mortgage Disclosure Act (HMDA) requires lenders to collect and report data on mortgage applications, including the race, ethnicity, and gender of applicants. The primary purpose of HMDA is to:
ASet minimum lending standards for all mortgages
BDetect and deter discriminatory lending patterns (redlining)✓ Correct
CEstablish maximum loan limits
DRequire lenders to approve all qualified applicants
Explanation
HMDA was enacted to provide information to detect discriminatory lending practices, particularly redlining, where lenders refuse to serve entire communities based on racial or ethnic composition. The data allows regulators and the public to identify patterns of lending discrimination.
Related Texas Finance Questions
- The Texas Department of Housing and Community Affairs (TDHCA) administers the 'My First Texas Home' program, which provides:
- A Texas FHA loan requires both an upfront mortgage insurance premium (UFMIP) and an annual mortgage insurance premium (MIP). Currently, the UFMIP is approximately:
- A Texas borrower applies for a $500,000 mortgage in 2024. This loan likely exceeds the conforming loan limit and would be classified as:
- A Texas buyer qualifies for a USDA Rural Development guaranteed loan. This type of loan is available for properties:
- Texas non-judicial foreclosure sales take place on:
- A Texas borrower with a 720 credit score and 5% down payment on a $300,000 home will most likely need:
- A Texas seller offers to 'carry back' part of the purchase price as a second lien. This type of financing is called:
- Under the Texas Home Equity law, a homeowner may borrow against their home equity provided the total debt against the homestead does not exceed:
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →