American Bankers Association CRCM Exam Practice Test Instant Access

Question 1

Which of the following is (are) NOT covered by the regulation?

AAll banks regardless of insurance sales.

BA lender who indicates to the consumer that he or she is selling insurance on behalf of the bank

CA person to whom the bank refers consumers and who has a contract with the bank to receive commissions on sales of insurance

DA person who sells insurance to nonconsumers for other than personal, family, or household purposes

Answer : D

Question 2

In the small bank performance standard, which of the following is NOT a criterion?

AThe bank's CRA strategic plan

BThe bank's loan-to-deposit ratio

CThe geographic distribution of loans

DThe percentage of loans within the bank's assessment area(s)

Answer : A

Question 3

Under collateral requirements-12CFR 221.7, maximum loan value of margin stock is:

ACurrently 50 percent of the current market value

BCurrently 70 percent of the current market value

CSubject to change by the Federal Reserve

DSubject to change by the Equity Reserve

Answer : A, C

Question 4

Bank A offers safe deposit services in a vault area that contains a door too narrow for wheelchair passage. The bank cannot widen the door because of the vault construction. Therefore, when a customer in a wheelchair needs access to a safe deposit box the customer cannot enter the vault. The bank provides viewing rooms for all safe deposit customers, and one of these rooms has a door wide enough for a disabled customer to enter. Which of the following must the bank do to provide safe deposit box service to wheelchair customers?

ARemove the old vault and install a new vault to allow wheelchair access

BConstruct an alternative facility in which to store the safe deposit boxes of wheelchair customers

CRequire wheelchair customers to be accompanied by a walking individual to retrieve the safe deposit box for the customer

DBring the safe deposit box to the customer and provide an accessible area where the customer may privately have access to the contents

Answer : D

Question 5

The purpose of guidelines for National Banks to Guard against Predatory and Abusive Lending Practices- AL-2003-2 includes all of the following EXCEPT:

AProvide examples to national banks of practices that may be abusive

BAdvise banks on how they should avoid abusive practices

CBanks should consider appropriate discount rates, credit loss rates, and prepayment rates when valuing these assets

DShow how some abusive lending can involve unfair or deceptive practices and therefore violate the Federal Trade Commission Act

Answer : C

Question 6

The purpose of advisory letter in Avoiding Predatory and Abusive Lending Practices in Brokered and Purchased Loans- AL-2003-3 is to:

AAdopt sound credit underwriting policies

BAlert national banks to the risks they take if they make loans through brokers or purchase loans that contain or reflect abusive or predatory terms or practices

CAdopt policies that address the circumstances under which the bank would make loans that have features associated with abusive lending practices

DMake loans secured by the consumer's home but with high, up-front fees that are financed and secured by the home

Answer : B

Question 7

The following statements make assertions about the collection and reporting of data on race, ethnicity, sex, and income. Which statement is false?

AIt must be requested on all HMDA-reportable applications received in person from natural persons.

BIt must be requested only for the loans where the application is taken in person.

CIt must be reported unless the loan was purchased.

DIt must be requested verbally on telephone applications.

Answer : B

American Bankers Association CRCM Certified Regulatory Compliance Manager Exam Practice Test