Do mortgage brokers have a duty to report HMDA data?

The appropriate reasoning behind the assertion that mortgage brokers do not have a duty to report HMDA (Home Mortgage Disclosure Act) data lies in the specific roles and responsibilities associated with mortgage brokers compared to those of other entities in the mortgage industry. Mortgage brokers primarily serve as intermediaries who facilitate mortgage transactions between borrowers and lenders, rather than directly underwriting or funding those loans.

Under HMDA regulations, the obligation to report data is typically assigned to financial institutions that engage in certain lending activities, including banks and credit unions, particularly those that take on the risks of underwriting loans. Since mortgage brokers do not fall into this category—because they do not take the same risks associated with loan origination or funding—they are not required to report HMDA data.

This distinction is important in understanding regulatory compliance within the mortgage industry and clarifying the responsibilities of different actors in the process. Thus, the answer reflects the regulatory framework in which mortgage brokers operate, specifically emphasizing their role in the transaction process that excludes direct involvement in loan origination reporting requirements.