Question

Under HMDA, lending institutions must submit their LAR's (Loan Application Registers) to the _______________ every year.

A) Federal Reserve
B) Consumer Financial Protection Bureau (CFPB)
C) Department of Housing and Urban Development (HUD)
D) Office of the Comptroller of the Currency (OCC)

Answer 1

Lending institutions are required to submit their Loan Application Registers (LAR's) annually to the Consumer Financial Protection Bureau (CFPB) under the Home Mortgage Disclosure Act (HMDA) for compliance and transparency in fulfilling community housing needs and preventing discrimination.

Step-by-step explanation:

Under the Home Mortgage Disclosure Act (HMDA), lending institutions are required to submit their Loan Application Registers (LAR's) to the Consumer Financial Protection Bureau (CFPB) every year. This is to ensure compliance with a variety of consumer protection laws. Institutions, as mandated, collect and disclose data about home purchases, refinancings, and home improvement loans which helps in monitoring compliance with the anti-discrimination laws, and also helps the public in determining if banks are serving the housing needs of their communities. By submitting LAR's to the CFPB, institutions provide transparency and accountability in their lending practices.