Certified Regulatory Compliance Manager v1.0 (CRCM)

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Total 471 questions

The maximum amount of credit that a bank may extend to all of its insiders is known as the ______________and is equal to 100 percent of its unimpaired capital and surplus.

  • A. Aggregate lending limit
  • B. Loan filliping
  • C. Equity stripping
  • D. Tangible economic benefit


Answer : A

On a written request from a member of the public, the bank must disclose the names of each of its executive officers and principal shareholders to whom the bank had aggregate credit outstanding at the end of the latest quarter that equaled or exceeded:

  • A. 10 percent of the bank"™s capital, and unimpaired surplus or $500,000, whichever is less; no disclosure is required if the aggregate credit was $30,000 or less. Disclosure of individual loan amounts is not required
  • B. 5 percent of the bank"™s capital, and unimpaired surplus or $500,000, whichever is less; no disclosure is required if the aggregate credit was $25,000 or less. Disclosure of individual loan amounts is not required
  • C. 6 percent of the bank"™s capital, and unimpaired surplus or $100,000, whichever is less; no disclosure is required if the aggregate credit was $25,000 or less. Disclosure of individual loan amounts is not required
  • D. 5 percent of the bank"™s capital, and unimpaired surplus or $100,000, whichever is less; no disclosure is required if the aggregate credit was $35,000 or less. Disclosure of individual loan amounts is not required


Answer : B

Record keeping requirements-12 CFR 215.8 elaborates that:

  • A. Each bank must establish a recordkeeping system to keep records necessary for compliance with Regulation O
  • B. Banks may use any alternative recordkeeping method for insiders of affiliates if the bank"™s regulatory agency determines the bank"™s method is at least as effective as that required by Regulation O
  • C. All recordkeeping systems must Include either an annual survey of insiders to identify related interests, or a requirement as part of each extension of credit that the borrower indicates whether he or she is an insider. Provide for the maintenance of records of all credit to insiders, including the amounts and terms
  • D. All of these


Answer : D

Debt Cancellation Contracts and Debt Suspension Agreements coverage includes:

  • A. National banks that issue debt cancellation contracts and debt suspension agreements with borrowers in connection with loans for personal, family, or household purposes
  • B. A national bank may not engage in any practice, including advertising, which would cause a reasonable person to be misled with respect to DSAs and DCCs
  • C. A bank must provide the long-form disclosures in writing before the customer completes the purchase of a contract. If the solicitation occurs in person, the long-form disclosures must be provided at that time
  • D. A bank must make the short-form disclosures orally at the time the bank first solicits the contract


Answer : A

This is a loan term or an arrangement that modifies a loan term under which a bank agrees to cancel all or part of a customer"™s loan obligation on the occurrence of a specified event. It may be included as a part of the loan documents, or it may be a separate agreement. What is it?

  • A. Debt suspension agreement (DSA)
  • B. Anti-dying
  • C. Debt cancellation contract (DCC)
  • D. ALLL


Answer : C

Short-form disclosures are required in advertisements and promotional materials unless the advertisements and promotional materials are of:

  • A. A general nature describing or listing the products or services offered by the bank
  • B. A specific nature describing or listing the products or services offered by the bank
  • C. A general nature describing or special services offered by the bank
  • D. A general nature describing competitive advantage of the bank


Answer : A

This is a loan term or an arrangement that modifies a loan term under which a bank agrees to suspend all or part of a customer"™s loan obligation on the occurrence of a specified event. It May be a part of the loan itself or a separate agreement. Does not include a loan payment deferral arrangement where the borrower or the bank can unilaterally defer a payment. What is it?

  • A. Debt suspension agreement (DSA)
  • B. Anti-dying
  • C. Debt cancellation contract (DCC)
  • D. ALLL


Answer : A

Under content of disclosures long term disclosures may include the following, as applicable EXCLUDING:

  • A. Notification that the product is optional
  • B. Explanation of debt-suspension agreement
  • C. Lump-sum payment of fee with no refund
  • D. Refund of fee paid in lump sum


Answer : D

Banks must establish and maintain effective risk management and control processes over its DCCs and DSAs, including:

  • A. Appropriate recognition and financial reporting of income, expenses, assets, and liabilities
  • B. Appropriate treatment of losses associated with these products
  • C. Assessment of the adequacy of its internal controls and risk mitigation activities
  • D. Before entering into a contract, the bank must obtain the customer"™s written affirmative election to enter into the contract and written acknowledgement of the receipt of the disclosures


Answer : ABC

The Equal Credit Opportunity Act (ECOA) was enacted in 1974 to prevent discrimination in credit transactions. In 1975 the act was amended. Which of the following prohibited base/s are now included in it?

  • A. National origin
  • B. Exercise of rights under the Consumer Credit Protection Act
  • C. Receipt of public assistance income
  • D. All of these


Answer : D

Securities credit covers credit subject to Section 7 of the Securities Exchange Act of 1934 or credit by a broker or dealer subject to regulation under the act. The following requirements of Regulation B do not apply EXCEPT:

  • A. Restrictions regarding information about a spouse or former spouse, marital status, or sex of the applicant
  • B. It is not payable by agreement in more than four installments
  • C. Provisions relating to furnishing credit information
  • D. Records retention requirements


Answer : B

Government credit -

  • A. It is credit extended to governments or government agencies, instrumentalities, or subdivisions
  • B. It has no finance charge
  • C. It has Records retention requirements
  • D. Only the general rule against discrimination applies to government credit


Answer : AD

An oral or written request for credit made in accordance with the creditor"™s procedures for the type of credit requested. Information entered into and retained by a computer system qualifies as a written application. It is called:

  • A. Credit Application
  • B. Credit completed application
  • C. Initial credit approach
  • D. None of these


Answer : A

Definition of completed application""12 CFR 202.2(f) is:

  • A. An application for which the bank has received all the information it regularly considers in evaluation, including credit reports, verifications, and so forth
  • B. The creditor must be reasonably diligent in collecting information to complete the application (for example, ordering credit bureau reports)
  • C. An inquiry becomes an application when the creditor evaluates information and decides to grant or decline the credit
  • D. Requests for written preapprovals to be issued by the lender are considered applications


Answer : AB

Requirements""12 CFR 202.2, 202.4, 202.5, 202.6, and 202.13 say that a creditor may not request information about an application"™s race, color, religion, national origin, or gender except as specifically permitted by ____________or another statute such as the Home Mortgage Disclosure Act.

  • A. Regulation B
  • B. Regulation U
  • C. Regulation Z
  • D. Regulation A


Answer : A

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Total 471 questions