Federal Mortgage Law · 24% of the SAFE exameasy
Correct answer: To demonstrate compliance with federal fair lending regulations and detect discriminatory patterns
HMDA requires lenders to collect demographic data — including ethnicity, race, and sex — so that regulators and the public can assess whether lenders are serving their communities without discrimination. This data is reported to regulators and made publicly available to identify potential discriminatory lending patterns. "To demonstrate compliance with federal fair lending..." is incorrect because federal law expressly prohibits using race, sex, ethnicity, national origin, religion, marital status, age, or receipt of public assistance as factors in a credit decision. "s eligibility for government assistance programs" is incorrect because HMDA has no connection to IRS reporting. "To satisfy IRS reporting requirements for mortgage i..." is incorrect because HMDA data collection has nothing to do with government assistance eligibility.
CRAM ARCADE has the full NMLS question bank, timed practice exams, focus drills on your weakest category, flashcards and spaced repetition. No credit card.
Start studying free