A mortgage company processes applications for both covered and non-covered loans. An applicant applies for a $50,000 home improvement loan not secured by a dwelling, then later applies for a $200,000 purchase mortgage. How should these be handled for HMDA reporting?
Correct Answer
B) Report only the purchase mortgage as it is a covered loan
Under Regulation C, only covered loans are reportable. Home improvement loans not secured by a dwelling are not covered loans, while purchase mortgages secured by dwellings are covered loans regardless of the applicant having other non-covered applications.
Why This Is the Correct Answer
Under Regulation C, only covered loans are reportable. Home improvement loans not secured by a dwelling are not covered loans, while purchase mortgages secured by dwellings are covered loans regardless of the applicant having other non-covered applications.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
People Also Study
General Mortgage Knowledge
23% of exam
Mortgage Loan Origination Activities
25% of exam
Ethics, Fraud & Consumer Protection
17% of exam
Uniform State Test Content
12% of exam
Previous Question
A mortgage lender discovers that a credit report they obtained contains information about a different person with a similar name and Social Security number. The lender has already made a credit decision based on this mixed file. The lender should:
Next Question
A lender discovers they provided incorrect TILA disclosures after closing a refinance. What must they do regarding the borrower's rescission rights?