Final answer:
The HUD/VA Addendum to Uniform Residential Loan Application is a supplementary document used in applications for government-backed home loans. It collects demographic information to ensure adherence to fair lending laws. Section X deals with monitoring for compliance with these laws.
Step-by-step explanation:
The HUD/VA Addendum to Uniform Residential Loan Application is a supplementary document for loan applicants who are applying for a government-backed mortgage, such as an FHA loan or a VA loan. This addendum is used in conjunction with the main loan application to provide additional information specifically required by the Department of Housing and Urban Development (HUD) and the Department of Veterans Affairs (VA).
Section X of the addendum, titled 'Information for Government Monitoring Purposes,' is where applicants are encouraged to volunteer personal demographic data like ethnicity and race. This information is not required, but it aids in the enforcement of equal credit opportunity, fair housing, and home mortgage disclosure laws.