What information must be on the loan application registers for home loans on property located within the bank's metropolitan area?
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A. B. C. D.A
The loan application registers for home loans on property located within the bank's metropolitan area must contain certain information to comply with the Community Reinvestment Act (CRA) and its implementing regulations. The CRA is a federal law that requires banks and other financial institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods.
The correct answer to the question is A. The county, census tract, and metropolitan area of the property.
Explanation:
The loan application registers are records that banks must maintain of all loan applications received for home loans on property located within their designated assessment area. The assessment area typically includes the bank's metropolitan area or areas where the bank has significant operations. The CRA requires banks to collect and report certain data about these loan applications to federal regulators to ensure that they are serving the credit needs of their communities.
The three pieces of information that must be on the loan application registers for home loans on property located within the bank's metropolitan area are:
County: This refers to the county in which the property is located. This information is important because it helps regulators understand which areas are being served by the bank and which areas may be underserved.
Census tract: This is a smaller geographic unit within the county that is used to identify specific neighborhoods or areas. This information is important because it helps regulators understand which specific neighborhoods or areas are being served by the bank and which areas may be underserved.
Metropolitan area: This refers to the larger metropolitan area in which the property is located. This information is important because it helps regulators understand which areas the bank is serving and whether it is meeting the credit needs of the community as a whole.
Therefore, option A is the correct answer because it includes all three pieces of information that must be on the loan application registers for home loans on property located within the bank's metropolitan area. Option B is incorrect because it includes the address of the property, which is not required. Option C is incorrect because it includes the fair market value of the property, which is also not required. Option D is incorrect because it includes the name of the applicant, which is not required.