19 Questions
Which test determines whether a depository financial institution had assets in excess of the asset-size threshold?
Asset-Size Threshold Test
What determines whether a depository financial institution had a home or branch office located in an MSA?
Location Test
What regulation requires a depository financial institution to report mortgage data?
Regulation C
Which type of institutions must meet location and loan-volume threshold tests to be subject to Regulation C reporting?
Nondepository financial institutions
What is one of the federally related test criteria for institutions to be subject to Regulation C reporting?
Originating a loan insured by a Federal agency
What does the transactional coverage section of Regulation C outline criteria for?
Excluding certain transactions from Regulation C coverage
After merger or acquisition activity, what must the surviving or newly formed institution do to be considered a financial institution under Regulation C?
Meet the loan-volume threshold test
What types of loans are covered under Regulation C?
\text{Both closed-end mortgage loans and open-end lines of credit}
What does the location test for nondepository financial institutions involve?
Having a home or branch office in a Metropolitan Statistical Area (MSA) on the preceding December 31
What is one of the loan-volume threshold tests required by Regulation C?
Meeting a certain dollar amount of originated loans
What must be determined for transactional coverage under Regulation C?
Whether the transaction meets the definition of a covered loan and is not excluded under Regulation C
What are covered loans under Regulation C subject to?
Specific criteria and exclusions outlined in Regulation C only
Which transaction type is not required to be reported under Regulation C?
A closed-end mortgage loan secured by a lien on unimproved land
What defines an open-end line of credit according to 12 CFR 1003.2(o)?
An open-end credit plan as defined in Regulation Z,without regard to whether the credit is consumer credit
What type of transaction is excluded from being reported under Regulation C?
The purchase solely of the right to service closed-end mortgage loans
Which transaction type does not fall under the excluded transactions listed in 12 CFR 1003.3(c)?
A closed-end mortgage loan originated by a financial institution acting in a fiduciary capacity
Which type of transaction is exempt from being reported under Regulation C?
The purchase of an interest in a pool of closed-end mortgage loans
What defines an extension of credit according to 12 CFR 1003.2(o)?
An extension of credit extended to a consumer
Which statement regarding excluded transactions under Regulation C is accurate?
Acquiring assets and liabilities as part of a merger or acquisition exempts reporting on closed-end mortgage loans or open-end lines of credit.
Study Notes
Regulation C Reporting Requirements Summary
- Regulation C requires institutions to determine if they originated home purchase loans or refinancing secured by a first lien on a one-to-four-unit dwelling in the preceding year.
- Federally related test criteria include being federally insured or regulated, or originating a loan insured by a Federal agency or intended for sale to Fannie Mae or Freddie Mac.
- The loan-volume threshold test requires institutions to have originated a certain number of closed-end mortgage loans or open-end lines of credit in the preceding years.
- Nondepository financial institutions must meet location and loan-volume threshold tests to be subject to Regulation C reporting.
- The location test involves having a home or branch office in a Metropolitan Statistical Area (MSA) on the preceding December 31.
- The transactional coverage section outlines criteria for excluding transactions from Regulation C coverage.
- The manual's procedures are similar to those adopted in 2019, with revisions reflecting amendments to Regulation C through a final rule published in 2020.
- After merger or acquisition activity, the surviving or newly formed institution must meet the criteria to be considered a financial institution under Regulation C.
- Transactional coverage involves determining whether a transaction meets the definition of a covered loan and is not excluded under Regulation C.
- Covered loans include closed-end mortgage loans and open-end lines of credit, subject to specific criteria and exclusions outlined in Regulation C.
- The definition of a closed-end mortgage loan is provided, including scenarios where a loan is not considered secured by a multifamily dwelling.
- Detailed examples and interpretations are provided for determining if a loan is secured by a multifamily dwelling as defined by Regulation C.
Test your knowledge of the Home Mortgage Disclosure Act (HMDA) examination objectives and procedures with this quiz. Questions cover the accuracy and timeliness of the financial institution’s HMDA LAR, compliance with disclosure requirements, and institutional coverage under Regulation C.
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