When developing a training plan for commercial lenders, which of the following regulations is least important to include? - ANSWER Truth in Lending Act, CFPB Regulation Z
The federal banking agencies have proposed an amendment to Regulation Z that would require a new early disclosure statement f...
when developing a training plan for commercial lenders
which of the following regulations is least important to include
the federal banking agencies have pr
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CRCM Exam 2022 Questions and
Answers
When developing a training plan for commercial lenders, which of the following
regulations is least important to include? - ANSWER Truth in Lending Act, CFPB
Regulation Z
The federal banking agencies have proposed an amendment to Regulation Z that would
require a new early disclosure statement for loans secured by the borrower's principal
dwelling. After reading the proposed change, what should the compliance professional
do FIRST? - ANSWER Prepare a summary document that outlines the effects the
proposed rule would have on the bank's operations
During a recent compliance examination, regulators cited the bank for violations of
various marketing regulations. How should the compliance professional FIRST
respond? - ANSWER Review the marketing materials and applicable regulations to
verify the finding.
A compliance professional is a member of the task force studying how the bank can
reduce customer complaints about holding deposits. One proposed solution involves
purchasing an expensive system that will reduce the number of holds placed by
evaluating the customer's history and relationship with the bank. Which of the following
roles is MOST important for the compliance professional on the task force? - ANSWER
Validating the system to ensure it complies with regulatory restrictions
A bank has a large mortgage department as well as a high HMDA error rate. An
expensive software program could automate the process, but the business unit
manager does not want to purchase the software because of its expense. Though it is
not as efficient, the manager prefers to make some improvements to the manual
process, add some more robust monitoring procedures, and opt not to purchase the
software. What should the compliance professional do? - ANSWER Document the fact
that the level of risk present with manual systems is acceptable to the mortgage
department business unit
During a recent compliance examination, regulatory examiners found that the bank was
not conducting flood hazard area determinations before closing on construction loans.
The compliance professional has reviewed the files and agreed with the examiners'
finding. What should be done FIRST? - ANSWER Review the bank's flood policies and
procedures to determine where the compliance failure occurred
A bank's president would like to begin offering a new home equity line of credit product
within two weeks. In all cases the borrower's principal dwelling will secure the loan. The
president has already launched a planned advertising campaign for the bank's major
service markets. What should the compliance professional do FIRST? - ANSWER
Perform a risk assessment to determine the bank's level of risk in offering this new
product
,CRCM Exam 2022 Questions and
Answers
Legislation was recently enacted to reform consumer real estate protection laws, and
the bank will now have to change the way it documents, discloses, and advertises real
estate loans, an integral product line at your bank. What should the compliance
professional do FIRST to implement the new law within the bank? - ANSWER Form a
task force of the business unit managers whose departments will be affected by the law
to collectively form an action plan
You are developing bank procedures for determining when to escalate issues or
problems identified as a result of repeat SAR filings on the same account. These
procedures should include all of the following criteria EXCEPT ____________. -
ANSWER notifying the customer
Your bank is considering closing a branch office. You should review which of the
following FIRST? - ANSWER Bank's branch closing policy and procedures
When reviewing for compliance under Regulation DD, which of the following items must
be included in an advertisement for a time deposit account where a fixed interest rate is
advertised? - ANSWER The APY
The examiners criticized your bank at the last examination for failing to conduct a
BSA/AML risk assessment of its operations. You have been asked to complete the
assessment. Which of the following categories is NOT suggested by the FFIEC
Examination Manual for your risk assessment? - ANSWER Vendors
A review of the bank's deposit accounts reveals that ABC Widget Manufacturing
Company, Inc. has recently opened a NOW account. Which of the following actions is
MOST appropriate for the bank to take? - ANSWER Convert the NOW account to a
non-interest bearing account and discuss other options with the customer.
Which of the following disclosures must be provided in writing at the time a variable rate
deposit account is opened? - ANSWER Frequency of potential rate changes
The bank made a purpose loan to a customer secured by margin stock. Now the
customer wants to sell that stock and provide a substitution. The withdrawal and
substitution is permitted under which of the following circumstances? - ANSWER the
withdrawal and substitution will not cause the existing loan to exceed the maximum 50%
loan to collateral value
When conducting an audit of IRS tax compliance procedures, you should select a
sample of which of the following forms? - ANSWER 1099A
The loan originators for consumer credit transactions secured by a dwelling in your
institution are subject to all of the following requirements EXCEPT: - ANSWER
Membership in the National Mortgage Loan Originator Society (NMLOS)
,CRCM Exam 2022 Questions and
Answers
RESPA prohibits which of the following bank practices? - ANSWER Receiving
complimentary flood certifications for its real estate portfolio when contracting for future
flood determination services
Under FIRREA Appraisal Standards, the definition of ''market value'' is NOT based on
the consummation of a sale and passing of title under conditions whereby: - ANSWER
the buyer and seller agree to special or creative financing terms
The bank's insurance representatives take applications in person and by telephone.
Which of the following monitoring procedures is MOST effective for ensuring disclosure
compliance when applications are taken by telephone? - ANSWER Compare the date
that a written disclosure was mailed to the customer with the date of the telephone
conversation.
You have learned that the Federal Reserve has issued a proposed regulation to
implement a recently enacted federal law. The proposal would have a significant
adverse impact on one of the financial institution's existing activities. You have prepared
a summary of the proposal for management. Which of the following actions is MOST
appropriate for you to take? - ANSWER Distribute the summary and advise that the
financial institution may send a comment letter.
Which of the following represents the required method for providing a consumer with the
insurance consumer protection disclosures in connection with a loan transaction? -
ANSWER At the time of loan application
Which of the following is considered a non-listed business that is eligible for exemption
from CTR reporting requirements? - ANSWER Licensed pari-mutual race track
The compliance manager's bank has a corporate initiative to acquire three financial
institutions during the next two years. The recently completed regulatory examination
included National Flood Disaster Protection Act violations, reimbursable violations of the
Truth-in-Lending Act, a ''needs to improve'' rating under CRA, and violations for
improperly completing hold notices under Regulation CC. On which of the following
violations should the compliance manager focus FIRST? - ANSWER CRA
For a bank located in an MSA, which of the following is MOST relevant when identifying
the bank's CRA assessment area? - ANSWER Political or geographic subdivisions
A bank may provide services to a non-bank affiliate under contract for fees if
____________. - ANSWER the terms are substantially the same as those prevailing at
the time for comparable non-affiliated transactions
, CRCM Exam 2022 Questions and
Answers
Which of the following types of collateral is EXEMPT from flood insurance regulations? -
ANSWER Agricultural land that includes gas or liquid storage tanks
During the past several years, a bank has acquired several banks through merger.
Management has decided to standardize the various deposit products into a simplified
list of products, and to change all accounts accordingly. This will create beneficial
changes for some customers and adverse changes for others. With regard to informing
customers of the changes under Regulation DD, the BEST course of action is to
____________. - ANSWER revise the disclosures and mail them with a letter describing
the changes, and stating that account holders should read about the new accounts
Your examiner tells you that your bank is straining its resources by not exempting any of
its commercial account holders from CTR filing. The examiner notes that many of these
customers are publicly traded and could be exempted. Which of the following actions is
in the bank's BEST interest? - ANSWER Determine whether granting exemptions is a
manageable risk for the bank.
You learn that your bank has created a report of all deposit and loan customers.
Presumed gender and ethnicity for each customer has been assigned based on
customer first and/or last names. You should tell management that they ____________.
- ANSWER May use the report to conduct an internal fair lending review
A consumer reporting agency notifies your bank that an individual is disputing the
accuracy of her credit report regarding information about a delinquent loan that your
bank reported. Your bank is required to FIRST ____________. - ANSWER investigate
the issue and report the results back to the consumer reporting agency
The head of the banks collections and recovery department called you to ask about a
proposed process improvement that he is considering for the department. He wants to
reduce the number of third party debt collectors the bank uses to collect delinquent
loans and use internal bank employees to conduct collection efforts, including calling
delinquent customers and sending communications requesting payments. He wants
your thoughts on the Fair Debt Collection Practices Act and its implications on such a
change. Your advice to the collections and recoveries manager includes: - ANSWER
The Fair Debt Collection Practices Act does not apply to debts collected by bank
employees, however, the employees should be trained to refrain from the unfair and
abusive provisions of the Act
Under the banks Funds Availability Policy, funds are generally given next day
availability. However, the bank discloses that it will also hold funds on a case-by-case
basis and under certain exceptions as permitted by law. A check for $2,000 is deposited
on Monday, July 6, 2015. A decision is made to place a hold on the check due to the
fact that there are alterations on it. It is drawn on an out-of-state company. When should
funds be made available to the depositor? - ANSWER $2,000 by July 13th
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