Question 37
Domain 1: Federal Mortgage-Related LawsWhat is the closed-end mortgage loan activity threshold for HMDA reporting?
Correct answer: B
Explanation
HMDA reporting applies to a closed-end mortgage lender only if it originated at least "25 closed-end mortgage loans in each of the two preceding calendar years." This threshold is the activity test used to determine whether the institution must report closed-end mortgage loan data.
Why each option is right or wrong
A. 10 loans in each of the two preceding years
B. 25 loans in each of the two preceding years
Under Regulation C, 12 C.F.R. § 1003.2(g)(1)(v), a closed-end mortgage lender is a covered financial institution only if it originated at least 25 closed-end mortgage loans in each of the two preceding calendar years. The threshold is measured on a two-year lookback, so an institution with 25 or more such loans in both prior years must report; falling below 25 in either year means the closed-end activity test is not met.
C. 50 loans in each of the two preceding years
D. 100 loans in each of the two preceding years