American Bankers Association CRCM Exam Practice Test Instant Access

Question 1

If the institution offers both full and reduced documentation loans and there is a pricing premium attached to the reduced documentation loan, the consumer should:

ABe alerted to this fact

BNot be alerted to this fact

CProvide consumers with a clear statement of the options available

DNot lead consumers with payment option ARMs to choose a non-amortizing or negatively amortizing payment

Answer : A

Question 2

In Receiver's agreement-12 CFR 210.28 it is clearly mentioned that:

AReceiving bank authorizes the Reserve Bank to credit the receiving bank's account

BAn off-line bank warrants to the Reserve Bank that it does not act as an intermediary bank or a beneficiary's bank for payment orders received for a beneficiary that is a bank, unless the off-line bank notifies the Reserve Bank in writing

CA Reserve Bank has rights of a creditor to recover an overdraft, including the right of set off

DReserve Banks, when acting as beneficiary's bank, payment order that identifies the beneficiary

Answer : A, B

Question 3

Which of the following representations on the HMDA loan application register is a violation of Regulation C?

AThe MSA number, instead of the MSA name, is used for each loan and application

BThe ''reasons for denial'' column is blank

CRace, national origin, and gender information are not included for purchased loans

DThe gender of the applicant is designated by the letters M or F

Answer : D

Question 4

Practice/s addressed in the guidance of OCC advisory on credit card practices-AL-2004- 10 is/are:

A''Up-to'' marketing

BPromotional rate marketing

CRepricing of accounts and other changes in credit terms

DLending to insiders

Answer : A, B, C

Question 5

On foreclosure, which of the following loans is subject to the reporting requirements for foreclosed and abandoned property?

AA loan made to purchase a family car, secured by the car

BAn unsecured loan made to purchase a computer used in the borrower's business

CA loan made to purchase a residence, secured by the residence

DA loan made to purchase a home computer, secured by the computer

Answer : C

Question 6

First National Bank (FNB) purchased a table for $500 at the Governor's reelection fundraising dinner last fall. FNB President Sally Holmes tells Mary Watkins, the municipal securities principal, that the bank is planning to participate in the upcoming state highway bonD. What does Ms. Watkins tell President Holmes?

AThe bank cannot participate without prior approval of the MSRB.

BThe bank can participate because national banks are exempt from MSRB rules.

CThe bank can participate, provided it includes the contribution on its next disclosure.

DThe bank cannot participate within two years of a contribution to the issuer.

Answer : D

Question 7

What is the longest time after board approval that a bank can approve a line of credit for an executive officer?

A12 months of such approval

B9 months of such approval

C14 months of such approval

D6 months of such approval

Answer : C

American Bankers Association CRCM Certified Regulatory Compliance Manager Exam Practice Test