A A Mortgage Corp.
is located in downtown Manchester, MO,
one block
west of
Woods Mill Rd.14346 Manchester Rd
in West County.
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Home Mortgage Disclosure Act - Regulation C
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The Home Mortgage Disclosure Act (HMDA) was enacted by Congress in 1974 and implemented by the
Federal Reserve Board as Regulation C. The regulation was promulgated by concerns that there
were credit shortages in certain urban neighborhoods. Congress found that some financial
institutions failed in their responsibilities to provide adequate home financing to qualified
applicants on reasonable terms and conditions. Therefore, one purpose for this regulation is to
provide the public with information regarding financial institutions' record of assisting in the
credit needs of the neighborhoods and communities in which they are located. Another purpose to
HMDA is to aid public officials in targeting public investments to attract investments from the
private sector. The regulation through the various amendments requires lending institutions to
collect and disclose data regarding the applicants and their characteristics. The HMDA regulation
thereby allows for the public to determine possible discriminatory lending patterns and assists
in enforcing anti-discriminatory statutes.
Through this regulation the regulatory agencies have the authority to review a lender's mortgage
loan record to determine any discriminatory practices against classes of individuals and/or
within particular areas within the communities served by the lender. The following types of
mortgage loans are subject to coverage under HMDA: (1) home purchase loans for any residential
dwelling, including a condominium unit, mobile home, manufactured home, or multi-family
dwelling; (2) home improvement loans made for the purpose of repairing, rehabilitating or
remodeling a dwelling; and, (3) the refinancing of a home previously covered by HMDA.
In order to evaluate lending practices, financial depository institutions are required to
collect certain data from applicants. All required HMDA data is found on the Real Estate Loan
Application Form 1003 in the government monitoring information section, which specifically
requests the applicant to provide information regarding national origin, race and sex. The
regulation allows the option to the loan applicant to furnish the data concerning national
origin, race and sex. However, the regulation does require the applicant to document his/her
choice when information will not be voluntarily provided. |
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