	Introduction

Recent mortgage repayment problems and subsequent increases in foreclosures have generated concern in Congress as to whether borrowers are taking out high interest loans that they cannot afford. Fourth, recent mortgage repayment problems may reflect a rise in various forms of predatory lending. Various legislation has been enacted to oversee lending practices in the mortgage market. The Home Mortgage Disclosure Act (HMDA) of 1975 requires the disclosure of mortgage loan information so regulators can monitor mortgage lending activity. In addition, the 1994 Home Ownership Equity Protection Act (HOEPA), enacted as an amendment to the Truth-In-Lending Act (TILA) of 1968, requires additional disclosures to consumers for high cost refinance and other non-purchase loans secured by their principal residences. This report briefly describes the role of HMDA reporting for monitoring higher-priced lending activities, discusses policy issues, and summarizes recent regulatory decisions made by the Federal Reserve Board, the agency that implements these statutes. This report also discusses how HOEPA and federally insured mortgage loans may be affected by recent regulatory changes. In 1989, Congress expanded HMDA to include the race, sex, and borrower income of those applicants that were rejected as well as those who were approved.
Recent developments in the subprime home loan market have triggered concern in Congress and the public at large as to whether borrowers were fully informed about the terms of their mortgage loans. Some observers have suggested that some borrowers in the subprime market may have been victims of predatory lending practices or other discriminatory activity. Bills introduced in the 110th Congress, such as S. 1299 (Senator Charles Schumer et al.) and S. 2452 (Senator Christopher Dodd et al.) would seek to remedy perceived abuses particularly with higher-priced mortgage lending.
This report describes current issues and recent changes to the Home Mortgage Disclosure Act (HMDA) of 1975. Also included are brief explanations of how recent reporting revisions may affect the reporting of loans covered by the Home Ownership and Equity Protection Act of 1994 as well as those insured by the Federal Housing Administration.