American Bankers Association CRCM Exam Practice Test Instant Access

Question 1

A consumer reporting agency may furnish a consumer report

AIf not authorized in writing by the consumer

BIn response to a court order having jurisdiction or a subpoena issued by a federal grand jury or review or collection of an account of the consumer

CIn connection with a credit or insurance transaction

DFor employment purposes Before procuring a consumer report, an employer Must disclose to the individual in writing that a consumer report may be obtained Must obtain written authorization from the individual before procuring the report

Answer : B, C, D

Question 2

It must provide in writing to consumer at least 21 days before the effective date of any change in a term or condition disclosed in the initial disclosure statement if the change results in:

* Increased fees

* Increased liability for the consumer

* Fewer types of available EFTs

* Stricter limitations on frequency or dollar amount of EFTs

What is it?

AChange-in-terms notice

BError resolution notice

CUnauthorized transfers

DReturn items document

Answer : A

Question 3

Which of the following pieces of information is the bank NOT required to report on Form 1099 for foreclosed and abandoned property?

AThe name, address, and TIN of the borrowers

BA description of the property

CThe original loan amount

DWhether the borrower is personally liable for the debt

Answer : C

Question 4

Credit scoring systems:

AEvaluate an applicant's creditworthiness mechanically, based on key attributes of the applicant and aspects of the transaction, and determine, alone or in conjunction with an evaluation of additional information about the applicant, whether an applicant is deemed creditworthy

BAre evaluated by regulatory agencies to determine whether they are empirically derived and statistically sound and to examine:
The bank's policies on the use of the credit scoring system
Training of bank employees on the use of the system
The number of high-side and low-side overrides of the system

CBoth of these

DNone of these

Answer : C

Question 5

Which of the following bank policies does NOT comply with the Interagency Policy Statement on the Retail Sales of Nondeposit Investments?

ASupervisors and sales personnel will receive compensation based on the volume of sales each department achieves as well as the effectiveness of the department's ability to find suitable investments for customers.

BAll bank employees engaged in the sale of nondeposit investments will provide the bank's required disclosures to all customers before the purchase of a nondeposit investment product.

CNo teller will discuss nondeposit investment products with a bank customer.

DTellers and new accounts personnel will receive a $25 fee for all customers referred to the nondeposit investment department on the customer's purchase of an investment product.

Answer : D

Question 6

State National Bank offers credit life and disability insurance on all consumer loans. This credit-related insurance is sold by a third party, but the bank collects a commission on all sales. The bank also sells hazard insurance through its affiliated insurance agency. Which of the following actions is legal for State National?

ARequire all consumers to purchase credit life insurance through the bank

BRequire only certain consumers to purchase credit life insurance through the bank

CRequire all borrowers with real property loans to provide insurance to protect the collateral

DRequire borrowers on real estate loans over $50,000 to purchase hazard insurance through the bank

Answer : C

Question 7

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

American Bankers Association Certified Regulatory Compliance Manager CRCM Exam Practice Test