American Bankers Association CRCM Exam - Topic 9 Question 92 Discussion

Actual exam question for American Bankers Association's CRCM exam

Question #: 92
Topic #: 9

John and Elise Fernandez apply to ABC Bank for a loan to purchase a manufactured home. ABC Bank is a community bank with approximately $100 million in assets, and the home would be located outside of the bank's metropolitan are a. Mr. and Mrs. Fernandez complete an in-person application for a mobile home that is denied by the bank due to insufficient income. Which piece of information on the Fernandez application is ABC Bank NOT required to report on its HMDA LAR?

AThe ethnicity of the applicants

BThe race of the applicants

CThe purpose of the loan application

DThe metropolitan area where the home will be located

Show Suggested Answer

Suggested Answer: A

by Crissy at Jul 07, 2024, 09:22 PM

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Sophia

5 months ago

Wait, are you sure they don't need to report race? That seems off.

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Mammie

5 months ago

I agree, the metropolitan area info isn't needed either.

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Jean

6 months ago

I thought they had to report all that info, but I guess not!

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Dominic

6 months ago

Definitely not required to report the purpose of the loan.

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Charlie

6 months ago

The HMDA LAR doesn't require reporting ethnicity.

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Yolande

6 months ago

I practiced a similar question, and I think the ethnicity and race are often reported, but maybe the purpose of the loan isn’t always necessary?

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Simona

6 months ago

I feel like the metropolitan area is important for reporting, but I can't recall if it's mandatory for all banks.

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Lynda

7 months ago

I remember something about HMDA reporting, and I think the purpose of the loan application is definitely required, so it can't be that one.

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Shantay

7 months ago

I think the bank might not need to report the ethnicity or race since they’re not required for all loans, but I’m not completely sure.

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Galen

7 months ago

I'm a bit confused on this one. Is the location of the home outside the bank's metro area relevant? And does the size of the bank's assets matter for what they have to report? I want to make sure I understand the full context before selecting an answer.

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Pamella

7 months ago

Okay, let me think this through. The application was denied due to insufficient income, so the bank doesn't have to report the ethnicity or race of the applicants. I'm pretty sure the purpose of the loan and the location of the home are required to be reported, so I'll eliminate those options.

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Odette

7 months ago

This question seems straightforward, but I want to make sure I understand the key details. The bank is a community bank with $100 million in assets, and the home is located outside their metro area. I think the key is figuring out what information they are not required to report on the HMDA LAR.

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Markus

7 months ago

This seems like a tricky question, but I think I've got it. Since the home is located outside the bank's metro area, they don't have to report the metropolitan area on the HMDA LAR. The other applicant details like ethnicity and race are still required, even for a denied application.

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Pamella

7 months ago

Okay, let's think this through step-by-step. Quality control is about the processes and activities used to ensure quality, so I'm thinking it's either C or D.

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Rusty

7 months ago

I remember something about the learning index calculations, and I feel like it's log 0.8 divided by log 2. That might be what the question is looking for?

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Gaynell

7 months ago

I think the key here is to use the point-in-time recovery feature since the question specifically mentions that requirement. Option D looks like the best choice.

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Ronald

11 months ago

This question is making me hungry. I could really go for a nice manufactured home with a side of HMDA reporting. Maybe John and Elise can share their leftovers if the bank denies their loan.

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Colette

10 months ago

I hope John and Elise can find another way to purchase their manufactured home.

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Whitley

10 months ago

They might not have to report the metropolitan area where the home will be located.

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Chauncey

10 months ago

I wonder if the bank will report the purpose of the loan application.

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Angelo

11 months ago

Wait, wait, wait. Isn't the answer C) The purpose of the loan application? I mean, who needs to report on that when the loan was denied anyway? The bank should just focus on the important stuff.

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Leoma

12 months ago

Haha, this question is a piece of cake! The answer is obviously B) The race of the applicants. Everybody knows HMDA only cares about the home's location, not the applicants' personal details.

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Dacia

12 months ago

I'm pretty sure it's A) The ethnicity of the applicants. HMDA reporting doesn't cover that, right? The bank is only required to report on race and not ethnicity.

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Lilli

10 months ago

Yes, banks are required to report the purpose of the loan application on their HMDA LAR.

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Felicitas

10 months ago

C) The purpose of the loan application

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Joni

11 months ago

That's correct. HMDA reporting only requires banks to report on the race of the applicants, not their ethnicity.

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Steffanie

11 months ago

A) The ethnicity of the applicants

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Paulene

1 year ago

The correct answer is D) The metropolitan area where the home will be located. That information is not required for HMDA reporting since the home is located outside the bank's metropolitan area.

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