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New CRCM - Questions And Answers Latest Update 2024
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New CRCM - Questions And Answers Latest Update 2024
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New CRCM - Questions AndAnswers Latest Update 2024
In which of the following transactions is a disclosure statement to the
consumer required? Answer: A $125,000 loan to purchase and secured by
an unimproved lot on which the borrower eventually plans to build a home for
retirement
Which of the following charges is generally to be a prepaid finance charge?
Answer: Points paid by the borrower in cash at closing
Which of these transactions requires the earliest disclosure? Answer: A
$200,000 loan with a variable interest rate to purchase a residence
If an advertisement for a lender's mortgage loan product states that "we offer
15 and 30 year loans," what additional disclosures are required by Regulation
Z? Answer: The terms repayment, amount of the down payment (in a
credit sale), and the APR
For how long must a lender retain evidence of compliance with the Truth in
Lending Act? Answer: Two years after the disclosures are required to be
made, except for mortgages, which have a five year retention requirement
Which of the following closed-end loans is subject to the right of rescission?
Answer: A home improvement loan for the borrower's principal dwelling,
secured by the dwelling
,For how long may consumers exercise the right to rescind transactions in
closed-end loans? Answer: Three business days after the later of the
consummation, delivery of notice of the right to rescind, or delivery of required
disclosures
Which of the following disclosures is NOT required on the itemization of
amount financed? Answer: An itemization of the various types of finance
charges
Borrower A has a variable rate loan secured by his principal dwelling for a
term of 10 years. Which of the following is NOT a Truth in Lending
requirement for his loan? Answer: Limiting the number of interest rate
increases in each calendar year
The State National Bank credit card program includes an annual fee that
equals a percentage of the average balance of the account during the previous
year. Of the following statements, which is true regarding the Truth in Lending
requirements applicable to this fee? Answer: The bank must disclose in
the initial application or solicitation either the fee amount or the percentage
amount and identify the amount against which the percentage is based
Which statement is NOT true regarding the application disclosure made by the
lender on a home equity open-end plan? Answer: Disclosure must be in a
form the borrower can keep
In an open-end account that is NOT a home equity plan, which of the
following does NOT have to provided to the consumer? Answer: A
brochure with a transaction example of $1,000 balance for six months
,When must a notice be received from a consumer in order to be considered a
"billing error notice"? Answer: Within 60 days after the first statement that
reflected the error
Which statement is true regarding a consumer's right to rescind an open-end
credit transaction? Answer: Right of rescission applies only to transactions
secured by the consumer's principal dwelling
When a bank makes a rescindable closed-end home improvement loan to a
consumer, to which of the following may the bank advance funds before the
end of the rescission period? Answer: To an escrow account with a third-
party escrow agent
First National Bank agreed to make a rescindable closed-end home
improvement loan to Mr. and Mrs. Smith. The Notice of the Right to Rescind
was given to the Smiths on Tuesday at the closing of the loan along with the
material disclosures. The Smiths purchased a title policy and paid for a
property appraisal for the bank in connection with the transaction. A lien was
filed against the Smiths' home on Tuesday afternoon. The bank funded the
loan on Friday morning at the request of Mr. Smith by crediting the Smiths'
joint checking account with the loan proceeds. On Friday afternoon Mrs.
Smith has a change of heart concerning the transaction and deposits a
rescission notice in the mail to the bank. The bank receives the notice on
Tuesday morning. All funds have been withdrawn from the account. What
should the bank do? Answer: Release the lien on the property
immediately, then refund to the Smiths the amounts they spend for the title
policy and appraisal, and then demand repayment of the loan (without
interest)
, A consumer customer reports to First National Bank's credit card department
that his credit card periodic statement contains an amount that is incorrect.
What should the bank do? Answer: Conduct an investigation and mail
within 30 days an acknowledgement of the error notice, a correction of the
error, or a notice that there is no error
If a bank completes an investigation of an alleged billing error and determines
that no billing error occurred and the consumer owes all or part of the amount,
what must the bank do? Answer: Send the consumer a notice that explains
why no billing error occurred
Which of the following situations is NOT considered a billing error? Answer:
The inclusion of a change for an item the quality of which dissatisfied the
consumer
For which disclosure must a bank obtain a customer's affirmative consent
before delivery? Answer: An electronic disclosure statement on a car loan
What must a married couple do to waive their right of rescission on their
residential property? Answer: Sign a written statement indicating the
reason for the waiver
A creditor receives a phone application for a home equity line of credit. Before
the time period for mailing out the early disclosure and the Regulation Z
mandated brochure, the creditor reviews the applicant's credit history and
discovers the applicant will not qualify for the line of credit due to a
bankruptcy filing last year. Which of the following BEST describes how
Regulation Z treats this situation? Answer: If the credit denial was made
within the period of time Regulation Z allows for mailing the early disclosures
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