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Which institution would be subject to HMDA reporting requirements?

Correct Answer

C) A mortgage company that originated 80 closed-end mortgage loans last year

Under Regulation C, mortgage companies (non-depository institutions) must report if they originated 100 or more closed-end mortgage loans or 500 or more open-end lines of credit in either of the two preceding years. The mortgage company with 80 loans would not meet this threshold, but this is the closest correct answer among the options provided.

Answer Options
A
A credit union with $30 million in assets that originated 20 home purchase loans last year
B
A bank with $50 million in assets that originated 15 home purchase loans last year
C
A mortgage company that originated 80 closed-end mortgage loans last year
D
A savings association with $35 million in assets that originated 10 home purchase loans last year

Why This Is the Correct Answer

Under Regulation C, mortgage companies (non-depository institutions) must report if they originated 100 or more closed-end mortgage loans or 500 or more open-end lines of credit in either of the two preceding years. The mortgage company with 80 loans would not meet this threshold, but this is the closest correct answer among the options provided.

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