What type of information is a lender NOT required to record for HMDA compliance?

The correct response highlights that lenders are not required to record familial status for Home Mortgage Disclosure Act (HMDA) compliance. HMDA aims to provide data that sheds light on housing-related lending practices and helps identify any potential discriminatory lending. The information that lenders are required to collect and report includes various data points that help assess and ensure fair access to housing credit.

Familial status pertains to whether an applicant has children or is expecting children, and this particular characteristic is considered more relevant in the context of fair housing laws rather than HMDA itself. The focus of HMDA reporting is primarily on factors that are more directly linked to the lending process and potential discriminatory behavior concerning loans, rather than demographic or family structure details.

In contrast, lenders are required to record information such as applicant gross income, which helps in assessing the applicant’s ability to repay loans; loan decision, which indicates whether the application was approved or denied, providing insight into lending patterns; and HOEPA status, which helps identify high-cost loans that may be subject to additional protections. These pieces of information play important roles in evaluating lending trends and practices under HMDA guidelines.