Question 6
Domain 1: Federal Mortgage-Related LawsWhich of the following must be reported on the HMDA Loan Application Register (LAR)?
Correct answer: B
Explanation
HMDA requires lenders to collect and report applicant demographic data on the Loan Application Register, including “race, ethnicity, and sex.” These fields are part of the HMDA data used to monitor lending patterns and fair lending compliance.
Why each option is right or wrong
A. The applicant's Social Security number
B. The applicant's race, ethnicity, and sex
Under the Home Mortgage Disclosure Act, 12 U.S.C. § 2803 and Regulation C, 12 C.F.R. § 1003.4(a), a covered institution must record and report applicant demographic information on the Loan/Application Register. The required data include the applicant’s race, ethnicity, and sex, and for applications taken in person the lender must collect these fields using the applicant’s self-reporting or visual observation if the applicant declines to provide them.
C. The applicant's mother's maiden name
D. The applicant's religious affiliation