Question

Janet is a broker who negotiates a number of loans to specific subdivisions. Last year, she took part in 27 loans to homeowners in one subdivision. Due to this large number of loans to a subdivision, Janet has to report loan activities to the California BRE. What is the name of this reporting process, how often does it take place, and what is an additional requirement for making these reports?

Answer 1

Answer: The options are given below:

A. The annual and quarterly process is Uniform Reporting. Additionally, if a broker negotiates more than $5,000,000.00 in loans annually, they must take part in Uniform Reporting.

B. The annual and quarterly process is Threshold Reporting. Additionally, if a broker negotiates more than $2,000,000.00 in loans annually, they must take part in Threshold Reporting.

C. The annual and quarterly process is Trust Reporting. Additionally, if a broker negotiates more than $2,000,000.00 in loans annually, they must take part in Threshold Reporting.  

D. The annual and quarterly process is Threshold Reporting. Additionally, if a broker negotiates more than $1,000,000.00 in loans annually, he/she must take part in Threshold Reporting.

The correct option is D

Explanation:

The annual and quarterly process is Threshold Reporting. Additionally, if a broker negotiates more than $1,000,000.00 in loans annually, he must take part in Threshold Reporting.

A Threshold Transaction Report (TTR) is a report that financial institutions and designated nonfinancial business and professions (DNFBPs) are mandated to file to financial intelligence unit (FIU) for each:

• deposit,  
• withdrawal,
• exchange of currency, or
• other payment or transfer,

The threshold reporting is carried out if the transaction is completed by, through, or to the financial  institution which involves an amount of more than $1,000,000.