Mortgage Loan Originator (MLO) Licensing Practice Test

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Prepare for the Mortgage Loan Originator (MLO) Licensing Test. Study with flashcards and multiple-choice questions, each with hints and explanations. Get ready to succeed on your exam!

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Individuals submit an annual Report of Foreign Bank and Financial Accounts to which agency?

SEC
FHA
IRS
FDIC

The correct answer is: IRS

Individuals submit an annual Report of Foreign Bank and Financial Accounts (FBAR) to the Internal Revenue Service (IRS). This report is a requirement under the Bank Secrecy Act and is used to disclose foreign financial accounts that exceed certain thresholds. The IRS oversees this form to ensure compliance with federal tax laws and international financial regulations. The FBAR is filed with the Financial Crimes Enforcement Network (FinCEN), which is a bureau of the Department of the Treasury, but it is ultimately the IRS that is responsible for the enforcement of related tax laws. This makes the IRS the correct answer in this context. The other agencies listed, such as the Securities and Exchange Commission (SEC), the Federal Housing Administration (FHA), and the Federal Deposit Insurance Corporation (FDIC), serve different regulatory functions that do not involve the reporting of foreign bank accounts. The SEC deals primarily with securities regulations, the FHA focuses on housing and mortgage insurance, and the FDIC insures deposits in banks and thrift institutions.