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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?
Suggested Answer: A
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34 comments · newest first
SO
Sophia
10 months ago
Wait, are you sure they don't need to report race? That seems off.
MA
Mammie
11 months ago
I agree, the metropolitan area info isn't needed either.
JE
Jean
11 months ago
I thought they had to report all that info, but I guess not!
DO
Dominic
11 months ago
Definitely not required to report the purpose of the loan.
CH
Charlie
11 months ago
The HMDA LAR doesn't require reporting ethnicity.
YO
Yolande
12 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?
SI
Simona
12 months ago
I feel like the metropolitan area is important for reporting, but I can't recall if it's mandatory for all banks.
LY
Lynda
12 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.
SH
Shantay
1 year 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.
GA
Galen
1 year 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.
PA
Pamella
1 year 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.
OD
Odette
1 year 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.
MA
Markus
1 year 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.
PA
Pamella
1 year 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.
RU
Rusty
1 year 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?
GA
Gaynell
1 year 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.
RO
Ronald
1 year 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.
CO
Colette
1 year ago
I hope John and Elise can find another way to purchase their manufactured home.
WH
Whitley
1 year ago
They might not have to report the metropolitan area where the home will be located.
CH
Chauncey
1 year ago
I wonder if the bank will report the purpose of the loan application.
AN
Angelo
1 year 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.
LE
Leoma
1 year 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.
DA
Dacia
1 year 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.
LI
Lilli
1 year ago
Yes, banks are required to report the purpose of the loan application on their HMDA LAR.
FE
Felicitas
1 year ago
C) The purpose of the loan application
JO
Joni
1 year ago
That's correct. HMDA reporting only requires banks to report on the race of the applicants, not their ethnicity.
ST
Steffanie
1 year ago
A) The ethnicity of the applicants
PA
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.
JE
Jesse
1 year ago
C) The purpose of the loan application
WE
Wendell
1 year ago
B) The race of the applicants
ZO
Zona
1 year ago
A) The ethnicity of the applicants
AN
Anika
2 years ago
But what about the purpose of the loan application? Wouldn't that be important for reporting?
VI
Vicente
2 years ago
I agree with Otis, the bank wouldn't need to report that information.
OT
Otis
2 years ago
I think the answer is D, the metropolitan area where the home will be located.