Certified Regulatory Compliance Manager (CRCM) — Question 285

Which of the following loans is clearly NOT subject to the IRS mortgage interest reporting requirement?

Answer options

• A. A loan made to purchase securities, secured by rural acreage
• B. A loan made to finance a college education, secured by a piece of commercial real estate
• C. A loan made to purchase a lot on a lake, secured by a certificate of deposit
• D. A loan made to purchase a residence, secured by the dwelling

Correct answer: C

Explanation

The correct answer is C because a loan secured by a certificate of deposit does not qualify as a mortgage under IRS guidelines. In contrast, options A, B, and D involve loans that are secured by real property or real estate, which are subject to the IRS mortgage interest reporting requirements.