Question \#13 of 15 The Home Mortgage Disclosure Act prohibits "redlining. True False

True! The Home Mortgage Disclosure Act (HMDA) was enacted in 1975 to protect consumers from discriminatory lending practices, including redlining, which is the practice of denying loans or insurance to individuals based on their neighborhood's demographics. This legislation aimed to ensure that all individuals, regardless of race or ethnicity, have equal access to credit. Understanding how HMDA works can empower you as a consumer! By providing data on where loans are being made, it encourages financial institutions to offer mortgages more equitably. This transparency helps to hold banks accountable and promotes better lending practices in underserved areas, fostering community development and growth.