The following statements make assertions about the collection and reporting of data on race, ethnicity, sex, and income. Which statement is false?
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A. B. C. D.B
The question is related to the collection and reporting of data on race, ethnicity, sex, and income in the context of the Home Mortgage Disclosure Act (HMDA). HMDA is a federal law that requires certain financial institutions to collect and report information about their mortgage lending activities.
Answer A states that race, ethnicity, sex, and income information must be requested on all HMDA-reportable applications received in person from natural persons. This statement is true. According to HMDA regulations, for applications taken in person from natural persons, financial institutions must request and collect data on the applicant's race, ethnicity, sex, and income.
Answer B states that race, ethnicity, sex, and income information must be requested only for loans where the application is taken in person. This statement is false. HMDA regulations require financial institutions to collect and report data on race, ethnicity, sex, and income for all HMDA-reportable applications, regardless of whether the application was taken in person or not.
Answer C states that race, ethnicity, sex, and income information must be reported unless the loan was purchased. This statement is true. HMDA regulations require financial institutions to report data on race, ethnicity, sex, and income for all HMDA-reportable loans originated or purchased during the reporting year. However, there are some exceptions to this requirement, such as loans that were purchased for purposes other than aggregation.
Answer D states that race, ethnicity, sex, and income information must be requested verbally on telephone applications. This statement is false. According to HMDA regulations, for telephone applications, financial institutions may either collect the required data verbally or provide the applicant with a written form to complete and return. Therefore, the financial institution is not required to request the information verbally for telephone applications.
In summary, the false statement is B, which asserts that race, ethnicity, sex, and income information must be requested only for loans where the application is taken in person. This is incorrect, as financial institutions are required to collect and report this data for all HMDA-reportable applications, regardless of the method of application.