What is the main objective of the Home Mortgage Disclosure Act (HMDA)?

The primary goal of the Home Mortgage Disclosure Act (HMDA) is to provide the public with information about mortgage lending patterns and trends. This act requires financial institutions to collect and report data regarding their mortgage lending activities, such as the number of loans made, the demographics of borrowers, and the geographical distribution of those loans.

This transparency is essential for identifying potential discriminatory lending practices and ensuring that lending decisions are made fairly and equitably. By analyzing the data, regulators, policymakers, and community organizations can assess how different groups are served by financial institutions and can work to address any disparities or injustices in access to mortgage credit. Thus, the correct answer highlights the act's focus on accountability and providing insights into lending trends rather than limiting loans, encouraging harmful practices, or establishing pricing regulations.