Question

Regulation C of HMDA requires lending institutions to submit a report to their supervisory agencies. This report is called which of the following?

1) SARs report.
2) LAR.
3) MAR.
4) PAR.

Answer 1

The report required by Regulation C of the HMDA to be submitted by lending institutions is called the Loan/Application Register (LAR), making option 2 the correct choice. The report assists in monitoring compliance with fair lending laws and identifying discriminatory lending patterns.

Step-by-step explanation:

Regulation C of the Home Mortgage Disclosure Act (HMDA) requires lending institutions to collect and report information about their mortgage lending activity. The report they must submit is known as the Loan/Application Register (LAR), which makes option 2 the correct answer. The purpose of the LAR is to help regulators monitor whether financial institutions are serving the housing needs of their communities, to assist in distributing public-sector investment so as to attract private investment to areas where it is needed, and to identify possible discriminatory lending patterns.

As for the other questions, in government programs of bank supervision, various aspects such as the safety and soundness of financial institutions, their compliance with applicable laws and regulations, and overall banking stability are being supervised. The lender of last resort typically refers to a country's central bank, which offers loans to banks or other eligible institutions that are experiencing financial difficulty or are considered highly risky or near collapse.

As for the responsibilities of the FDIC, NCUA, and OCC: The Federal Deposit Insurance Corporation (FDIC) insures deposits in banks and thrift institutions, monitors financial institutions to ensure their safety and soundness, and works to maintain a stable and efficient financial system. The National Credit Union Administration (NCUA) administers the National Credit Union Share Insurance Fund (NCUSIF), which insures deposits up to federal limit per member, per institution. The Office of the Comptroller of the Currency (OCC) charters, regulates, and supervises all national banks and federal savings associations as well as federal branches and agencies of foreign banks.