ABA CRCM - Certified Regulatory Compliance Manager Exam
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Total 462 questions
Question #11 (Topic: Topic 1)
Compliance professionals have a duty to keep senior management and the board apprised of the state of compliance within the bank through which of the
following:
following:
A. Self-monitoring and audit results
B. Proactive compliance controls
C. Timely and accurate regulatory reporting
D. All of the options mentioned above
Answer: D
Question #12 (Topic: Topic 1)
After a compliance officer develops a base of knowledge of regulations, he or she must begin the art of applying regulations in a risk management environment.
Which of the following is NOT out of a few things to be kept in mind when determining what to do FIRST?
Which of the following is NOT out of a few things to be kept in mind when determining what to do FIRST?
A. Think practically about your role as an advisor. Involve the business units in the decision process rather than making decisions for them
B. Calculate the institution’s consolidated risk profile
C. Make sure you understand the level of risk the bank will tolerate, so decisions do not exceed this limit
D. Add value by analyzing regulatory requirements for the business units before you present proposed or final rules or solutions
Answer: B
Question #13 (Topic: Topic 1)
In the mid-1980s a movement began among the federal supervisory agencies to produce a uniform ARM regulation. In 1988, the Federal Reserve Board added
the uniform ARM disclosure requirements to a regulation. Therefore, most of the original OCC ARM consumer protection requirements are now found in this new
regulation. Adjustable rate mortgage loans made by national banks may be subject to the OCC’s ARM regulation or the requirements of this new regulation, or
both. This new regulation is:
the uniform ARM disclosure requirements to a regulation. Therefore, most of the original OCC ARM consumer protection requirements are now found in this new
regulation. Adjustable rate mortgage loans made by national banks may be subject to the OCC’s ARM regulation or the requirements of this new regulation, or
both. This new regulation is:
A. Regulation Z
B. Truth in Lending
C. CFR 34.21, 34.22 and 34.23
D. FIRREA penalty
Answer: AB
Question #14 (Topic: Topic 1)
Which one of the following is out of the FIRREA penalties included in the enforcement section of Adjusted Mortgage Regulation (12 CFR 34)?
A. Penalties up to $7,500 per day for violations of laws and regulations
B. Penalties up to $47,500 per day if violations or unsafe or unsound practices are engaged in recklessly or are part of a pattern of misconduct that causes more than a minimal loss to the bank or any pecuniary gain to the parties involved
C. Penalties up to $1,375,000 per day against persons who knowingly commit a violation and knowingly or recklessly cause a substantial loss to the bank or a substantial benefit to the party
D. Penalties up to $6,500 per day for violations of laws and regulations
Answer: AC
Question #15 (Topic: Topic 1)
In Requirements section of Adjusted Mortgage Regulation (12 CFR 34), for loans subject to both the OCC ARM regulation and to Regulation Z, 12 CFR 226.19(b)
â€"that is, loans made to an individual, for personal purposes, secured by the borrower’s principal dwelling, and having a term longer than one yearâ€" the index to
which the interest rate is tied must be:
â€"that is, loans made to an individual, for personal purposes, secured by the borrower’s principal dwelling, and having a term longer than one yearâ€" the index to
which the interest rate is tied must be:
A. Specified in loan documents
B. Readily available to and verifiable by the browser
C. Multiple values of a chosen measure or a moving average of the chosen measure calculated over a specified period
D. A and B only
Answer: D
