Certified Regulatory Compliance Manager (CRCM) — Question 286

Which of the following actions subjects a lender to mortgage interest reporting requirements?

Answer options

• A. The lender holds mortgage loans in the course of its trade or business.
• B. The lender is a qualified FHA or VA lender.
• C. The lender receives at least $500 in interest on a mortgage loan during a calendar year.
• D. The lender offers unsecured home improvement loans.

Correct answer: A

Explanation

Answer A is correct because lenders engaged in the business of holding mortgage loans must comply with interest reporting regulations. The other options do not establish a requirement for interest reporting, as being a qualified FHA or VA lender or receiving a specific amount of interest does not inherently lead to reporting obligations.