Let us reassure you, when a lender requests information pertaining to demographics, it’s not intended to be discriminatory. You may wonder why is it necessary to provide personal information when applying for mortgage loans? Applicants are asked their demographic information in order to monitor compliance with equal credit opportunity, fair housing, and home mortgage disclosure laws. You are not required to provide this information, but are encouraged to do so.
The law provides that lenders shall not discriminate on the basis of this information. Pursuant to the Home Mortgage Disclosure Act (HMDA), lenders collect race and ethnicity information to ensure applicants are treated fairly and the housing needs of communities and neighborhoods are being fulfilled. For more information click link below.
If you have any questions on any of these laws, please contact us.