Under HMDA, when must a financial institution collect information about an applicant's race and ethnicity?
Correct Answer
B) For all covered loan applications regardless of how they are received
Regulation C requires lenders to attempt to collect race and ethnicity information for all covered loan applications, whether taken in person, by telephone, or through electronic media. If the applicant declines to provide the information, the lender must note the refusal.
Why This Is the Correct Answer
Regulation C requires lenders to attempt to collect race and ethnicity information for all covered loan applications, whether taken in person, by telephone, or through electronic media. If the applicant declines to provide the information, the lender must note the refusal.
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?
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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?
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Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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A mortgage company uses an automated underwriting system that flags applications from certain ZIP codes for additional review. The company argues this is based on property values, not demographics. Under Regulation B: