Certified Regulatory Compliance Manager (CRCM) — Question 287

If the lender is subject to the mortgage interest reporting requirement, which of the following actions is NOT required?

Answer options

• A. The lender must file an information return with the IRS.
• B. The lender must report the amount of interest and points on the information return.
• C. The lender must report the loan balance as of December 31 of the year preceding the year the report is filed.
• D. The lender must send a statement to the borrower.

Correct answer: C

Explanation

The correct answer is C because reporting the loan balance as of December 31 of the previous year is not a requirement under mortgage interest reporting. Options A, B, and D are necessary actions that lenders must take to comply with the reporting requirements set by the IRS.