Home Mortgage Disclosure Act (HMDA): Lessons for Australia’s Mortgage Market

Australia’s mortgage market is constantly evolving, with regulatory shifts in 2025 aiming to balance affordability, competition, and fair lending. While local policies remain uniquely tailored, there’s value in looking abroad for inspiration—especially at the United States’ Home Mortgage Disclosure Act (HMDA). This landmark law has shaped mortgage data transparency for decades. What is HMDA, how has it changed the US landscape, and could its principles offer a roadmap for improving Australian home loan practices?

What is the Home Mortgage Disclosure Act?

Enacted in 1975, the HMDA compels US lenders to publicly disclose detailed information about their home mortgage lending activity. The law’s core aim: to ensure transparency, discourage discriminatory lending, and empower communities and policymakers with reliable data. Over the years, HMDA reporting has expanded to include more granular data—such as applicant demographics, loan type, interest rates, and whether loans were approved, denied, or originated.

• Data Collection: Lenders report annually on home purchase, refinance, and home improvement loans.

• Anti-discrimination: HMDA data exposes patterns that might indicate redlining or bias.

• Public Access: Data is made available to the public, researchers, and advocacy groups, strengthening accountability.

HMDA in 2025: Policy Updates and Impact

As of 2025, HMDA remains a central pillar of US fair lending enforcement. Recent updates have focused on:

• Enhanced Data Fields: Lenders now report more detailed data, including loan pricing, credit scores, and borrower ethnicity/race.

• Digital Accessibility: The Consumer Financial Protection Bureau (CFPB) has streamlined public access to anonymized HMDA data, promoting research and journalism.

• Regulatory Oversight: US regulators use HMDA data to flag potential discriminatory lending practices, triggering targeted audits and enforcement actions.

For example, in 2024, HMDA data revealed disparities in approval rates for minority borrowers in several US cities, prompting investigations and lender reforms. These public disclosures have held lenders accountable and informed legislative responses to close gaps in homeownership.

Lessons for Australia: Transparency and Fair Lending

Australia’s regulatory environment differs—APRA, ASIC, and the ACCC oversee lending standards, and the Comprehensive Credit Reporting (CCR) regime enhances some data flows. However, mortgage data transparency is less granular and less public than under HMDA.

Why might Australia consider HMDA-inspired reforms?

• Boosting Consumer Confidence: Public mortgage data would empower Australians to compare lenders more effectively, shining a light on approval trends and interest rate disparities.

• Addressing Inequality: Transparent data could highlight systemic barriers faced by women, First Nations Australians, or recent migrants, enabling targeted policy interventions.

• Encouraging Competition: More visible lending practices can incentivise banks and non-bank lenders to compete on fairness and service—not just price.

In 2025, with the Albanese government’s ongoing housing affordability agenda and the Productivity Commission reviewing competition in banking, HMDA-style reporting is a timely idea. For example, the recent expansion of the First Home Guarantee scheme could be better evaluated with detailed data on who benefits and who misses out.

Challenges and Considerations

Implementing HMDA-like reforms would require careful balancing of privacy and transparency. Key considerations include:

• Data Privacy: Any release of loan-level data must protect borrower identities—mirroring US anonymisation protocols.

• Reporting Burden: Smaller lenders may need support to comply with expanded data collection.

• Clear Purpose: Data should be used not just for compliance, but to drive positive change—reducing discrimination, improving access, and informing public debate.

Conclusion

The Home Mortgage Disclosure Act has made US home lending more transparent, fair, and accountable. As Australia grapples with housing equity and competition, there’s much to learn from HMDA’s successes and challenges. Enhanced mortgage data transparency could be a game-changer for borrowers, lenders, and policymakers alike—helping ensure every Australian has a fair shot at homeownership in 2025 and beyond.