NMLS Quiz: Identify Hmda Reporting Rules

What this quiz covers

This quiz focuses on Identify Hmda Reporting Rules, giving you a quick way to practice the rules, question types, and explanations that matter most for NMLS.

How to use this quiz

Try each quiz question before looking at the correct answer. Use the explanations to review missed ideas, then come back to similar questions until the pattern feels familiar.

Question 1

1. Whether the applicant is currently serving on active duty in the armed forces
2. Whether the applicant has ever served in the military including reserve or guard service
3. Whether the applicant is eligible for VA loan benefits based on military service
4. No military status information is required to be collected under HMDA reporting rules (correct answer)

Question 2

1. The applicant's credit score at the time of application submission
2. The applicant's total monthly debt obligations including all existing credit accounts
3. The applicant's ethnicity, race, and sex as provided by the applicant (correct answer)
4. The applicant's employment history for the preceding 24-month period

Question 3

1. A temporary financing arrangement for construction of a one-to-four family dwelling unit (correct answer)
2. A home equity line of credit secured by a one-to-four family dwelling unit
3. A refinancing of an existing mortgage loan secured by a one-to-four family dwelling
4. A reverse mortgage loan secured by a one-to-four family dwelling unit

Question 4

1. The complete street address of the property securing the loan including apartment number if applicable
2. The census tract number where the property securing the loan is located (correct answer)
3. The county and state where the property securing the loan is located
4. The metropolitan statistical area designation where the property securing the loan is located

Question 5

1. The gross annual income of the primary applicant only, excluding any co-applicant income
2. The gross annual income relied upon by the lender in making the credit decision (correct answer)
3. The net monthly income of all applicants after taxes and mandatory deductions
4. The total household income including non-applicant household members' earnings and government benefits

Question 6

1. The application should not be reported since no credit decision was rendered by the lender
2. The application should be reported with an action taken code indicating 'Application withdrawn' (correct answer)
3. The application should be reported as denied since it did not result in a loan origination
4. The application should be reported as incomplete since the underwriting process was not finished

Question 7

1. Wait until the next annual reporting period to correct the error along with new data
2. Submit corrected data to the appropriate federal supervisor within 30 days of discovery (correct answer)
3. Notify borrowers affected by the data error and provide corrected loan documentation
4. File an amended report only if the error affects more than 5% of reported loans

Question 8

1. The loan must be originated by a federally insured depository institution or government agency
2. The loan must be secured by a dwelling and be for home purchase, improvement, or refinancing (correct answer)
3. The loan must have an interest rate that exceeds the average prime offer rate threshold
4. The loan must be eligible for purchase by Fannie Mae or Freddie Mac under conforming standards

Question 9

1. The lender receives a 30-day extension to submit data without penalty or regulatory action
2. The lender may be subject to enforcement action and civil money penalties by regulators (correct answer)
3. The lender must pay a fixed fine of $1,000 per day until the data is submitted
4. The lender loses its HMDA reporting exemption and must report monthly for the following year

Question 10

1. The lender must refuse to process the application until demographic information is provided by the applicant
2. The lender must note the applicant's refusal and make no attempt to determine the information
3. The lender must note the applicant's refusal but may determine the information through visual observation or surname (correct answer)
4. The lender must obtain the demographic information from a consumer reporting agency or public records

Question 11

1. Only after the loan application has been approved and prior to closing
2. At the time of application for loans taken in person, by mail, or telephone (correct answer)
3. Only for applications that result in loan origination, not for denied applications
4. Within 30 days after the loan application has been submitted and processed

Question 12

1. The total amount of discount points paid by the borrower at loan closing
2. The spread between the loan's APR and the average prime offer rate (correct answer)
3. The total amount of origination fees charged by the lender for loan processing
4. The difference between the initial interest rate and the fully-indexed rate for adjustable loans

Question 13

1. 25 closed-end mortgage loans in each of the two preceding calendar years
2. 50 closed-end mortgage loans in each of the two preceding calendar years
3. 75 closed-end mortgage loans in each of the two preceding calendar years
4. 100 closed-end mortgage loans in each of the two preceding calendar years (correct answer)

Question 14

1. Immediately upon meeting the threshold requirements during the current calendar year
2. Beginning January 1st of the calendar year following the year in which thresholds are met (correct answer)
3. Beginning the first day of the quarter following the quarter in which thresholds are met
4. Beginning 90 days after the end of the calendar year in which thresholds are met

Question 15

1. One-to-four family dwelling since condominiums are individual residential units (correct answer)
2. Multifamily dwelling since condominiums are part of larger residential developments
3. Mixed-use property since condominium buildings often include commercial space
4. Manufactured housing since condominiums involve factory-built residential components

Question 16

1. Home purchase since the transaction involves acquiring additional equity value
2. Refinancing since the transaction replaces an existing mortgage loan obligation (correct answer)
3. Home improvement since the cash proceeds are typically used for property enhancement
4. Other purpose since cash-out refinancing does not fit standard HMDA categories

Question 17

1. January 31st of the year following the calendar year for which data is being reported
2. March 1st of the year following the calendar year for which data is being reported (correct answer)
3. April 15th of the year following the calendar year for which data is being reported
4. May 31st of the year following the calendar year for which data is being reported

Question 18

1. By transferring all compliance duties to real estate agents
2. By eliminating the need for recordkeeping on applications
3. By requiring data submission and allowing audits and reviews (correct answer)
4. By requiring daily reporting of every customer interaction

Question 19

1. A home improvement loan secured by a dwelling
2. A refinancing of a dwelling-secured closed-end loan
3. A personal loan with no dwelling collateral (correct answer)
4. A dwelling-secured line of credit application decision

Question 20

1. Only commercial real estate loans to large corporations
2. Dwelling-secured loan applications and outcomes, as applicable (correct answer)
3. All deposit account openings and closures
4. Only mortgages sold on the secondary market