HMDA Flashcards
Based on the scenarios below, which of the following institutions is not subject to the coverage of the Home Mortgage Act (HMDA) reporting?
Bank A, with assets of $55 million is federally insured and located in a large urban city. Bank A makes home improvement loans and some home purchase loans to existing customers. In addition, Bank A originated 100 closed-end mortgage loans in each of the two preceding years, of which 55 were HMDA reportable.
Bank B, with assets of $20 million is federally insured and located in a rural area. Bank B has several branches, also in rural areas, including one that makes home improvement and home purchase loans. In addition, Bank B originated 100 closed-end mortgage loans in each of the two preceding years, of which 10 were HMDA reportable.
Mortgage Company C, with assets of $75 million and a home office in a large East Coast city, exclusively makes home purchase loans. In addition, Mortgage Company C originated 800 open-end mortgage loans in each of the two preceding years, of which 600 were HMDA reportable
a. All the institutions are subject to HMDA.
b. Bank A
c. Bank B
d. Mortgage Company C
c. Bank B
Which type of loan transaction is not covered under the HMDA reporting requirements?
a. A loan secured by a multifamily dwelling
b. A home equity line of credit for home remodeling
c. A loan to purchase a residential lot
d. Both b and c
c. A loan to purchase a residential lot
Which one of the following types of data are not required to be reported for each originated loan application subject to Regulation C reporting requirements?
a. Purpose of the loan
b. Race, ethnicity, and sex of the applicant
c. Interest rate on the loan
d. None of the above. All must be reported.
d. None of the above. All must be reported.
First National is subject to HMDA reporting. On which of these loans does First National have to report the interest rate on its HMDA loan application register (LAR)?
a. A loan to renovate a vacation property, secured by the property
b. A loan to purchase a home for the borrower’s son, secured by the property
c. A home improvement loan secured by a principal dwelling
d. All of the above
d. All of the above
Which scenario triggers the collection of ethnicity, race, sex, and age?
a. While applying for a mortgage refinance loan in a local branch, Ms. K declines to provide “such personal information”
b. A mortgage application received from Family Dentistry, LLC to purchase a condominium
C. Individual guarantors on a multi-family housing loan application
d. A consumer mortgage that is purchased by an institution
a. While applying for a mortgage refinance loan in a local branch, Ms. K declines to provide “such personal information”
What information is not required on the HMDA LAR for home loans on property located within the bank’s metropolitan area?
a. The state, county, and census tract of the property
b. The name, address, and metropolitan area of the applicant
c. The property value relied on in making the credit decision
d. Address of the property securing the loan or proposed to secure the loan
b. The name, address, and metropolitan area of the applicant
Which of the following is required to be reported on ABC Bank’s HMDA LAR?
a. An application from Mr. Welch for a preapproval of a home purchase loan application that was approved by ABC in writing but not accepted by Mr. Welch
b. An application from Mr. and Mrs. Rawlings for a preapproval of a home purchase loan application that was denied by ABC
C. An application from Ms. Connor for a home equity loan to be used to consolidate credit cards
d. All of the above
d. All of the above
Of the following, which loan or application is excluded from HMDA reporting?
a. A loan secured by a dwelling that is made for a consumer purpose other than home purchase, home improvement, or refinancing
b. A loan secured by a multi-family property that is made for a business purpose of renovating the property
c. An application secured by and for the purpose of refinancing a home when there is no increase in principal
d. None. All are reportable.
d. None. All are reportable.
Which of the following steps must First National take to comply with HMDA disclosure requirements?
a. Provide written notice to the public upon request stating that its modified LAR may be obtained on the CFPB’s Web site
b. Within three business days of receiving notice from the FFIEC that it is available, provide written notice to the public upon request stating that its disclosure statement may be obtained on the CFPB’s website
c. Post notices in the lobbies of its home office and each branch located within an MSA stating that its HMDA data is available on the CFPB’s Web site
d. All are required
d. All are required
For HMDA purposes, the term “dwelling” does not include which of the following?
a. Manufactured home park
b. Single-family residence
c. Individual condominiums
d. Hotel
d. Hotel
An individual borrowed $1,000 to remodel her manufactured home. She lives in the manufactured home, which is not anchored to the ground. The loan will be secured by the manufactured home, but the borrower does not own the lot on which it is parked. Based on this information, for HMDA purposes, this loan is considered to be which of the following types of loans?
a. Consumer recreational vehicle
b. Home equity
c. Home improvement
d. Second mortgage
c. Home improvement
Under HMDA rules, what is the threshold for reporting the interest rate spread for first lien mortgage loans?
a. Equal to or greater than 1.5 percentage points
b. Equal to or greater than 5 percentage points
c. Equal to or greater than 7 percentage points and when the loan is subject to the Home Ownership and Equity Protection Act (HOEPA)
d. There is no threshold for reporting.
d. There is no threshold for reporting.
In a review of a bank’s home mortgage LAR, which of the following must be included?
a. Loans made or purchased in a fiduciary capacity
b. Servicing rights purchased
c. Interim construction loan applications
d. Loans made, purchased and sold within the reporting period
d. Loans made, purchased and sold within the reporting period
