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Exam CRCM topic 1 question 304 discussion

Actual exam question from ABA's CRCM
Question #: 304
Topic #: 1
[All CRCM Questions]

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

  • 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.
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Suggested Answer: A 🗳️

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Cam22
3 months, 4 weeks ago
Selected Answer: A
The IRS requires lenders to report mortgage interest received if they are in the business of lending money and hold mortgage loans as part of their trade or business activities. This requirement is aimed at ensuring that the interest paid on mortgage loans is accurately reported both by borrowers, for potential tax deductions, and by lenders, for income reporting purposes.
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