Question

Up to ________ reasons for denial are to be noted when reported HMDA data.

A) Two
B) Three
C) Four
D) Five

Answer 1

The correct answer to how many reasons for denial are to be noted on reported HMDA data is three. Financial institutions must report up to three reasons from a specified list by the CFPB.

Step-by-step explanation:

The subject of this question is the reporting requirements under the Home Mortgage Disclosure Act (HMDA). Specifically, the question asks how many reasons for denial are to be noted on reported HMDA data. The correct answer is B) Three. According to Regulation C, which implements HMDA, financial institutions are required to report up to three reasons for denial if an applicant's loan request is denied. These reasons must come from a specified list provided by the Consumer Financial Protection Bureau (CFPB).