Which of the following loans would First National report on its loan application register?
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A. B. C. D.A
The loan application register (LAR) is a document that banks and other lending institutions are required to maintain under the Home Mortgage Disclosure Act (HMDA). The LAR contains information about loan applications that the institution has received, including the loan amount, the purpose of the loan, and the race and ethnicity of the applicant.
In this context, the question is asking which loan(s) would be reported on First National's LAR. Let's look at each answer choice:
A. A refinancing of the balance of a home purchase loan made five years earlier, both loans will be secured by dwellings.
This loan would be reported on the LAR because it involves a refinancing of an existing loan that was used to purchase a dwelling. The fact that both loans are secured by dwellings further supports the idea that this loan should be reported.
B. A loan made to a couple, secured by their home, to pay for their children's education.
This loan would not be reported on the LAR because it is not related to the purchase, refinancing, or improvement of a dwelling. Instead, it is being used to pay for education expenses.
C. A bridge loan made to a newly transferred executive of a local company.
This loan would not be reported on the LAR because it is not related to the purchase, refinancing, or improvement of a dwelling. Instead, it is being used to provide temporary financing until the executive's permanent financing can be arranged.
D. A loan made to construct a principal dwelling.
This loan would be reported on the LAR because it is being used to construct a new dwelling. The fact that it is a principal dwelling (i.e., the borrower's primary residence) further supports the idea that this loan should be reported.
In summary, the loans that would be reported on First National's LAR are: