What is the minimum number of open-end mortgage loans required for open-end reporting under HMDA in the preceding two years?

The correct answer is based on the Home Mortgage Disclosure Act (HMDA) requirements regarding open-end mortgage loans and the criteria for data reporting. To be subject to open-end reporting under HMDA, a reporting institution must have originated at least 200 open-end mortgage loans in the preceding two years. This threshold ensures that sufficient data is collected to facilitate meaningful analysis of lending patterns and trends concerning open-end loans, promoting transparency and accountability in the mortgage lending industry.

By establishing this minimum number of loans, HMDA aims to ensure that the data reported is robust enough to provide insight into lending practices, enabling regulators and the public to assess whether lending is being conducted fairly and without discrimination.

Options that suggest lower figures, such as 100, 150, and 250 loans do not align with the specific regulatory requirements set forth by HMDA, which means they do not fulfill the criteria for this type of reporting. The requirement for 200 loans strikes a balance between gathering enough information while setting a clear standard for lenders to follow.