The Home Mortgage Disclosure Act (HMDA) requires lenders to:
Why Collect and report data on mortgage loan applications by race, gender, and geography Is Correct
Answer B: Collect and report data on mortgage loan applications by race, gender, and geography
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
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Related Alabama Questions
- Under HMDA, lenders are required to report mortgage loan data to:Finance
- The Truth in Lending Act (TILA) requires lenders to disclose the:Finance
- Which federal law requires lenders to provide a Loan Estimate to mortgage applicants within 3 business days of application?Finance
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- An appraisal report for a single-family home mortgage most commonly uses which standardized form?Property Valuation
Key Terms to Know
The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
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