Loan Officer Practice Exam 2025 – Comprehensive All-in-One Guide for Exam Success!

The regulation that pertains to the disclosure of mortgage interest statistics is Regulation C. This regulation implements the Home Mortgage Disclosure Act (HMDA), which requires certain financial institutions to collect, report, and disclose mortgage data. The primary purpose of Regulation C is to ensure that lenders provide sufficient information about their mortgage lending practices, allowing for transparency and analysis regarding access to credit in different communities.

This regulation mandates institutions to report various characteristics of loans, which include information on the loan amount, property location, race, sex, and ethnicity of applicants, among others. By gathering and disclosing this data, Regulation C aims to assist in monitoring lending practices to determine whether credit is equally available to all applicants, thus combating discrimination and promoting fair lending.

While other regulations listed have their own specific purposes, such as Regulation B, which addresses fair lending and prohibits discrimination, or Regulation D, which pertains to reserve requirements for depository institutions, none specifically focus on the reporting of mortgage interest statistics as Regulation C does. Regulation X deals with the Real Estate Settlement Procedures Act (RESPA) and provides regulations on disclosures related to real estate settlement processes, rather than focusing specifically on mortgage interest data.