Time-Saving HMDA Software

The Home Mortgage Disclosure Act (HMDA) is a federal law that requires banks, credit unions, and mortgage lenders that meet certain thresholds to collect, report, and disclose information about their mortgage lending activity (including applications, originations, refinancings, and certain home improvement loans). It is enforced by the Consumer Financial Protection Bureau (CFPB) and other federal regulators.

HMDA’s purpose is to show whether lenders are meeting the housing credit needs of their communities, particularly low- and moderate-income (LMI) neighborhoods. Its central goal is transparency—making mortgage lending data public so regulators, community groups, and the public can evaluate access to credit. HMDA data is used to identify discriminatory lending patterns, detect redlining, monitor fair lending risks, and shape housing policy. By holding institutions accountable, it also helps maintain trust with the communities they serve.

HMDA generally covers closed-end mortgages, open-end lines of credit secured by a dwelling (such as HELOCs), refinancings, and some home improvement loans. Small-volume or nonprofit lenders may be exempt.

Nonprofit mortgage lenders and institutions that do not meet HMDA’s asset size, location, or loan-volume thresholds are exempt from reporting requirements.

HMDA data must be collected during the calendar year and submitted by March 1 of the following year. Institutions must also make certain data publicly available. 

HMDA compliance software is a tool that helps lenders collect, validate, analyze, and transmit HMDA data accurately. It reduces manual errors, speeds up reporting, and ensures submissions meet CFPB formatting and validation requirements. 

The best HMDA software combines fast, accurate transmittal with built-in error detection, analytics dashboards, mapping tools, and fair lending risk analysis and recommendations. Choosing the right platform depends on your institution’s size, reporting volume, and compliance needs.

HMDA reporting software should provide analytics to identify risks in areas like pricing, underwriting, redlining, and steering. Tools like regression analysis and matched pairs testing help detect disparities early and strengthen fair lending oversight. It should also suggest steps you can take to resolve any issues uncovered.

Spreadsheets are slow, error-prone, and hard to audit. HMDA software automates data checks, geocoding, and submission formatting while producing examiner-ready reports — saving time and reducing the risk of costly exam findings. 

Any bank, credit union, or mortgage lender subject to HMDA can benefit from compliance software. It’s especially valuable for institutions with high reporting volumes, limited compliance staff, or those wanting to proactively manage fair lending risk.