Financial institutions should not report certain loan data. Which of the following is not on the excluded data list for financial institutions reporting?

Financial institutions should not report certain loan data. Which of the following is not on the excluded data list for financial institutions reporting?

• A. Loans on unimproved land
• B. The purchase of mortgage loan servicing rights
• C. Home improvement loans
• D. Temporary financing (such as bridge or construction loans)

Answer: (C)

Some loan types are exempt from reporting under HMDA to keep data collection focused on mortgages and housing-related credit activity. The items commonly excluded include loans secured by unimproved land, purchases of mortgage servicing rights, and temporary financing such as bridge or construction loans. Home improvement loans are not on that exclusion list, so they are reportable. Reporting these loans helps regulators and lenders analyze patterns in homeowner financing, assess compliance with fair lending laws, and monitor access to credit for households. So the correct choice is the loan type that is not excluded—home improvement loans.

Some loan types are exempt from reporting under HMDA to keep data collection focused on mortgages and housing-related credit activity. The items commonly excluded include loans secured by unimproved land, purchases of mortgage servicing rights, and temporary financing such as bridge or construction loans. Home improvement loans are not on that exclusion list, so they are reportable. Reporting these loans helps regulators and lenders analyze patterns in homeowner financing, assess compliance with fair lending laws, and monitor access to credit for households. So the correct choice is the loan type that is not excluded—home improvement loans.