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Compliance Corner: Second Quarter 2005

Answers to Frequently Asked Questions About New HMDA Data

On March 31, 2005, the federal bank, credit union, and thrift supervisory agencies, along with the Department of Housing and Urban Development (HUD), released answers to frequently asked questions (FAQs) that address the new home loan price data that will be disclosed this year for the first time under the Home Mortgage Disclosure Act (HMDA). The FAQs will aid users with their evaluation and interpretation of the data.

The FAQs are part of the larger effort by the Federal Reserve Board, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, and HUD to promote the informed use of the 2004 data.

A full understanding of the data, including its limitations, will help ensure that the data are used effectively to advance the goals of HMDA. The agencies plan to engage in educational outreach to state and local agencies, trade associations, and consumer- and community-based organizations.

In September, the Federal Financial Institutions Examination Council will release the annual summary statistical reports for each lender and an aggregate report for each Metropolitan Statistical Area. Concurrently, staff of the Federal Reserve Board will publish an article analyzing the 2004 data in the Federal Reserve Bulletin.

The FAQs are available on the Federal Reserve Board’s website.External Link

The views expressed in this article are those of the author and are not necessarily those of this Reserve Bank or the Federal Reserve System.