When collecting ethnicity information under HMDA, what should a loan officer do if an applicant refuses to provide the information?
Correct Answer
C) Note the refusal and determine ethnicity based on visual observation or surname
Under Regulation C, if an applicant refuses to provide ethnicity, race, or sex information, the lender must note the refusal and then determine the information based on visual observation or surname if the application is taken in person, or surname if taken by mail, internet, or telephone.
Why This Is the Correct Answer
Under Regulation C, if an applicant refuses to provide ethnicity, race, or sex information, the lender must note the refusal and then determine the information based on visual observation or surname if the application is taken in person, or surname if taken by mail, internet, or telephone.
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