Which of the following is required to be reported on ABC Bank's HMDA LAR?
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A. B. C. D.C
The Home Mortgage Disclosure Act (HMDA) requires certain financial institutions, including ABC Bank, to collect and report data about their housing-related lending activity. Specifically, HMDA requires covered institutions to maintain a Loan Application Register (LAR) and report information about certain loan applications on an annual basis.
In this scenario, we are asked which loan application must be reported on ABC Bank's HMDA LAR. Let's go through each answer choice and determine if it meets the reporting requirements:
A. An application from Mr. Welch for a preapproval of a home purchase loan application that is approved by ABC in writing but not accepted by Mr. Welch.
This application does not need to be reported on ABC Bank's HMDA LAR. According to HMDA, a preapproval request is not considered a covered loan unless the preapproval results in a home purchase loan. Since Mr. Welch did not accept the preapproval offer, it does not meet the reporting requirements.
B. An application from Ms. Ensley for a preapproval of a temporary construction loan that is denied by ABC.
This application does not need to be reported on ABC Bank's HMDA LAR. Similar to answer choice A, a preapproval request for a temporary construction loan is not considered a covered loan under HMDA.
C. An application from Mr. and Mrs. Rawlings for a preapproval of a home purchase loan application that is denied by ABC.
This application must be reported on ABC Bank's HMDA LAR. HMDA requires covered institutions to report all applications for covered loans, regardless of whether they are approved or denied. A preapproval request for a home purchase loan is considered a covered loan under HMDA.
D. An application from Ms. Connor for a home equity loan to be used to consolidate credit cards.
This application must be reported on ABC Bank's HMDA LAR. HMDA requires covered institutions to report all applications for covered loans, regardless of the purpose of the loan. A home equity loan is considered a covered loan under HMDA.
In summary, the loan applications that must be reported on ABC Bank's HMDA LAR are: