Loan Officer Practice Exam 2026 – Comprehensive All-in-One Guide for Exam Success!

The Home Mortgage Disclosure Act (HMDA) is particularly focused on the collection and reporting of data related to mortgage lending and it outlines requirements regarding the information that should be collected and maintained for loan underwriting processes. The intent of HMDA is to provide transparency in mortgage lending and allow for monitoring of discriminatory lending practices. By requiring lenders to collect and report specific data about the loans they originate, HMDA plays a crucial role in ensuring that the underwriting process is fair and equitable.

The other options, while important regulations in their own right, do not specifically govern the data requirements for loan underwriting. The FACT Act deals with consumer credit and identity theft; the Equal Credit Opportunity Act prohibits discrimination in lending based on various factors; and the Gramm-Leach-Bliley Act focuses on financial privacy and the sharing of personal financial information among financial institutions. Thus, the HMDA is the specific legislation that outlines the requirements for the data necessary in loan underwriting.