Final answer:
Regulation C, which implements the Home Mortgage Disclosure Act, requires covered institutions to report home lending data. Noncompliance could lead to scrubbing and resubmission of data, civil money penalties, or administrative sanctions but not directly to consumer lawsuits, as Regulation C does not provide a basis for this.
Step-by-step explanation:
Regulation C implements the Home Mortgage Disclosure Act (HMDA), and institutions covered by this regulation are required to collect data about their home lending activity and report it to the appropriate federal agencies. Noncompliance with Regulation C can lead to several consequences.
Among the possible consequences are:
- Scrubbing and resubmission of HMDA data: This involves correcting and resubmitting accurate data if errors or omissions are found.
- Consumer lawsuits: Consumers may sue institutions if they believe they have been harmed by noncompliance with HMDA requirements.
- Civil money penalties: Regulatory agencies may impose financial penalties on institutions that fail to comply with Regulation C.
- Administrative sanctions: These may include formal agreements, cease and desist orders, or other corrective actions imposed by regulators.
The option that is not a possible consequence of noncompliance with Regulation C is consumer lawsuits. This is because Regulation C is concerned with reporting requirements rather than consumer interactions, and it does not provide a basis for consumer lawsuits. The more direct consequences are regulatory in nature, such as civil money penalties and administrative sanctions.