CRCM Exam 2026/2027 | Practice Questions, Answers &
Certification Study Guide
When developing a training plan for commercial lenders, which of the following regulations is least
important to include? - Correct answer✅✅ Truth in Lending Act, CFPB Regulation Z
The federal banking agencies have proposed an amendment to Regulation Z that would require a new
early disclosure statement for loans secured by the borrower's principal dwelling. After reading the
proposed change, what should the compliance professional do FIRST? - Correct answer✅✅ Prepare a
summary document that outlines the effects the proposed rule would have on the bank's operations
During a recent compliance examination, regulators cited the bank for violations of various marketing
regulations. How should the compliance professional FIRST respond? - Correct answer✅✅ Review the
marketing materials and applicable regulations to verify the finding.
A compliance professional is a member of the task force studying how the bank can reduce customer
complaints about holding deposits. One proposed solution involves purchasing an expensive system that
will reduce the number of holds placed by evaluating the customer's history and relationship with the
bank. Which of the following roles is MOST important for the compliance professional on the task force?
- Correct answer✅✅ Validating the system to ensure it complies with regulatory restrictions
A bank has a large mortgage department as well as a high HMDA error rate. An expensive software
program could automate the process, but the business unit manager does not want to purchase the
software because of its expense. Though it is not as efficient, the manager prefers to make some
improvements to the manual process, add some more robust monitoring procedures, and opt not to
purchase the software. What should the compliance professional do? - Correct answer✅✅ Document
the fact that the level of risk present with manual systems is acceptable to the mortgage department
business unit
During a recent compliance examination, regulatory examiners found that the bank was not conducting
flood hazard area determinations before closing on construction loans. The compliance professional has
reviewed the files and agreed with the examiners' finding. What should be done FIRST? - Correct
answer✅✅ Review the bank's flood policies and procedures to determine where the compliance
failure occurred
,A bank's president would like to begin offering a new home equity line of credit product within two
weeks. In all cases the borrower's principal dwelling will secure the loan. The president has already
launched a planned advertising campaign for the bank's major service markets. What should the
compliance professional do FIRST? - Correct answer✅✅ Perform a risk assessment to determine the
bank's level of risk in offering this new product
Legislation was recently enacted to reform consumer real estate protection laws, and the bank will now
have to change the way it documents, discloses, and advertises real estate loans, an integral product line
at your bank. What should the compliance professional do FIRST to implement the new law within the
bank? - Correct answer✅✅ Form a task force of the business unit managers whose departments will
be affected by the law to collectively form an action plan
You are developing bank procedures for determining when to escalate issues or problems identified as a
result of repeat SAR filings on the same account. These procedures should include all of the following
criteria EXCEPT ____________. - Correct answer✅✅ notifying the customer
Your bank is considering closing a branch office. You should review which of the following FIRST? -
Correct answer✅✅ Bank's branch closing policy and procedures
When reviewing for compliance under Regulation DD, which of the following items must be included in
an advertisement for a time deposit account where a fixed interest rate is advertised? - Correct
answer✅✅ The APY
The examiners criticized your bank at the last examination for failing to conduct a BSA/AML risk
assessment of its operations. You have been asked to complete the assessment. Which of the following
categories is NOT suggested by the FFIEC Examination Manual for your risk assessment? - Correct
answer✅✅ Vendors
A review of the bank's deposit accounts reveals that ABC Widget Manufacturing Company, Inc. has
recently opened a NOW account. Which of the following actions is MOST appropriate for the bank to
take? - Correct answer✅✅ Convert the NOW account to a non-interest bearing account and discuss
other options with the customer.
Which of the following disclosures must be provided in writing at the time a variable rate deposit
account is opened? - Correct answer✅✅ Frequency of potential rate changes
,The bank made a purpose loan to a customer secured by margin stock. Now the customer wants to sell
that stock and provide a substitution. The withdrawal and substitution is permitted under which of the
following circumstances? - Correct answer✅✅ the withdrawal and substitution will not cause the
existing loan to exceed the maximum 50% loan to collateral value
When conducting an audit of IRS tax compliance procedures, you should select a sample of which of the
following forms? - Correct answer✅✅ 1099A
The loan originators for consumer credit transactions secured by a dwelling in your institution are
subject to all of the following requirements EXCEPT: - Correct answer✅✅ Membership in the National
Mortgage Loan Originator Society (NMLOS)
RESPA prohibits which of the following bank practices? - Correct answer✅✅ Receiving complimentary
flood certifications for its real estate portfolio when contracting for future flood determination services
Under FIRREA Appraisal Standards, the definition of ''market value'' is NOT based on the consummation
of a sale and passing of title under conditions whereby: - Correct answer✅✅ the buyer and seller
agree to special or creative financing terms
The bank's insurance representatives take applications in person and by telephone. Which of the
following monitoring procedures is MOST effective for ensuring disclosure compliance when
applications are taken by telephone? - Correct answer✅✅ Compare the date that a written disclosure
was mailed to the customer with the date of the telephone conversation.
You have learned that the Federal Reserve has issued a proposed regulation to implement a recently
enacted federal law. The proposal would have a significant adverse impact on one of the financial
institution's existing activities. You have prepared a summary of the proposal for management. Which of
the following actions is MOST appropriate for you to take? - Correct answer✅✅ Distribute the
summary and advise that the financial institution may send a comment letter.
Which of the following represents the required method for providing a consumer with the insurance
consumer protection disclosures in connection with a loan transaction? - Correct answer✅✅ At the
time of loan application
, Which of the following is considered a non-listed business that is eligible for exemption from CTR
reporting requirements? - Correct answer✅✅ Licensed pari-mutual race track
The compliance manager's bank has a corporate initiative to acquire three financial institutions during
the next two years. The recently completed regulatory examination included National Flood Disaster
Protection Act violations, reimbursable violations of the Truth-in-Lending Act, a ''needs to improve''
rating under CRA, and violations for improperly completing hold notices under Regulation CC. On which
of the following violations should the compliance manager focus FIRST? - Correct answer✅✅ CRA
For a bank located in an MSA, which of the following is MOST relevant when identifying the bank's CRA
assessment area? - Correct answer✅✅ Political or geographic subdivisions
A bank may provide services to a non-bank affiliate under contract for fees if ____________. - Correct
answer✅✅ the terms are substantially the same as those prevailing at the time for comparable non-
affiliated transactions
Which of the following types of collateral is EXEMPT from flood insurance regulations? - Correct
answer✅✅ Agricultural land that includes gas or liquid storage tanks
During the past several years, a bank has acquired several banks through merger. Management has
decided to standardize the various deposit products into a simplified list of products, and to change all
accounts accordingly. This will create beneficial changes for some customers and adverse changes for
others. With regard to informing customers of the changes under Regulation DD, the BEST course of
action is to ____________. - Correct answer✅✅ revise the disclosures and mail them with a letter
describing the changes, and stating that account holders should read about the new accounts
Your examiner tells you that your bank is straining its resources by not exempting any of its commercial
account holders from CTR filing. The examiner notes that many of these customers are publicly traded
and could be exempted. Which of the following actions is in the bank's BEST interest? - Correct
answer✅✅ Determine whether granting exemptions is a manageable risk for the bank.
You learn that your bank has created a report of all deposit and loan customers. Presumed gender and
ethnicity for each customer has been assigned based on customer first and/or last names. You should
tell management that they ____________. - Correct answer✅✅ May use the report to conduct an
internal fair lending review
Certification Study Guide
When developing a training plan for commercial lenders, which of the following regulations is least
important to include? - Correct answer✅✅ Truth in Lending Act, CFPB Regulation Z
The federal banking agencies have proposed an amendment to Regulation Z that would require a new
early disclosure statement for loans secured by the borrower's principal dwelling. After reading the
proposed change, what should the compliance professional do FIRST? - Correct answer✅✅ Prepare a
summary document that outlines the effects the proposed rule would have on the bank's operations
During a recent compliance examination, regulators cited the bank for violations of various marketing
regulations. How should the compliance professional FIRST respond? - Correct answer✅✅ Review the
marketing materials and applicable regulations to verify the finding.
A compliance professional is a member of the task force studying how the bank can reduce customer
complaints about holding deposits. One proposed solution involves purchasing an expensive system that
will reduce the number of holds placed by evaluating the customer's history and relationship with the
bank. Which of the following roles is MOST important for the compliance professional on the task force?
- Correct answer✅✅ Validating the system to ensure it complies with regulatory restrictions
A bank has a large mortgage department as well as a high HMDA error rate. An expensive software
program could automate the process, but the business unit manager does not want to purchase the
software because of its expense. Though it is not as efficient, the manager prefers to make some
improvements to the manual process, add some more robust monitoring procedures, and opt not to
purchase the software. What should the compliance professional do? - Correct answer✅✅ Document
the fact that the level of risk present with manual systems is acceptable to the mortgage department
business unit
During a recent compliance examination, regulatory examiners found that the bank was not conducting
flood hazard area determinations before closing on construction loans. The compliance professional has
reviewed the files and agreed with the examiners' finding. What should be done FIRST? - Correct
answer✅✅ Review the bank's flood policies and procedures to determine where the compliance
failure occurred
,A bank's president would like to begin offering a new home equity line of credit product within two
weeks. In all cases the borrower's principal dwelling will secure the loan. The president has already
launched a planned advertising campaign for the bank's major service markets. What should the
compliance professional do FIRST? - Correct answer✅✅ Perform a risk assessment to determine the
bank's level of risk in offering this new product
Legislation was recently enacted to reform consumer real estate protection laws, and the bank will now
have to change the way it documents, discloses, and advertises real estate loans, an integral product line
at your bank. What should the compliance professional do FIRST to implement the new law within the
bank? - Correct answer✅✅ Form a task force of the business unit managers whose departments will
be affected by the law to collectively form an action plan
You are developing bank procedures for determining when to escalate issues or problems identified as a
result of repeat SAR filings on the same account. These procedures should include all of the following
criteria EXCEPT ____________. - Correct answer✅✅ notifying the customer
Your bank is considering closing a branch office. You should review which of the following FIRST? -
Correct answer✅✅ Bank's branch closing policy and procedures
When reviewing for compliance under Regulation DD, which of the following items must be included in
an advertisement for a time deposit account where a fixed interest rate is advertised? - Correct
answer✅✅ The APY
The examiners criticized your bank at the last examination for failing to conduct a BSA/AML risk
assessment of its operations. You have been asked to complete the assessment. Which of the following
categories is NOT suggested by the FFIEC Examination Manual for your risk assessment? - Correct
answer✅✅ Vendors
A review of the bank's deposit accounts reveals that ABC Widget Manufacturing Company, Inc. has
recently opened a NOW account. Which of the following actions is MOST appropriate for the bank to
take? - Correct answer✅✅ Convert the NOW account to a non-interest bearing account and discuss
other options with the customer.
Which of the following disclosures must be provided in writing at the time a variable rate deposit
account is opened? - Correct answer✅✅ Frequency of potential rate changes
,The bank made a purpose loan to a customer secured by margin stock. Now the customer wants to sell
that stock and provide a substitution. The withdrawal and substitution is permitted under which of the
following circumstances? - Correct answer✅✅ the withdrawal and substitution will not cause the
existing loan to exceed the maximum 50% loan to collateral value
When conducting an audit of IRS tax compliance procedures, you should select a sample of which of the
following forms? - Correct answer✅✅ 1099A
The loan originators for consumer credit transactions secured by a dwelling in your institution are
subject to all of the following requirements EXCEPT: - Correct answer✅✅ Membership in the National
Mortgage Loan Originator Society (NMLOS)
RESPA prohibits which of the following bank practices? - Correct answer✅✅ Receiving complimentary
flood certifications for its real estate portfolio when contracting for future flood determination services
Under FIRREA Appraisal Standards, the definition of ''market value'' is NOT based on the consummation
of a sale and passing of title under conditions whereby: - Correct answer✅✅ the buyer and seller
agree to special or creative financing terms
The bank's insurance representatives take applications in person and by telephone. Which of the
following monitoring procedures is MOST effective for ensuring disclosure compliance when
applications are taken by telephone? - Correct answer✅✅ Compare the date that a written disclosure
was mailed to the customer with the date of the telephone conversation.
You have learned that the Federal Reserve has issued a proposed regulation to implement a recently
enacted federal law. The proposal would have a significant adverse impact on one of the financial
institution's existing activities. You have prepared a summary of the proposal for management. Which of
the following actions is MOST appropriate for you to take? - Correct answer✅✅ Distribute the
summary and advise that the financial institution may send a comment letter.
Which of the following represents the required method for providing a consumer with the insurance
consumer protection disclosures in connection with a loan transaction? - Correct answer✅✅ At the
time of loan application
, Which of the following is considered a non-listed business that is eligible for exemption from CTR
reporting requirements? - Correct answer✅✅ Licensed pari-mutual race track
The compliance manager's bank has a corporate initiative to acquire three financial institutions during
the next two years. The recently completed regulatory examination included National Flood Disaster
Protection Act violations, reimbursable violations of the Truth-in-Lending Act, a ''needs to improve''
rating under CRA, and violations for improperly completing hold notices under Regulation CC. On which
of the following violations should the compliance manager focus FIRST? - Correct answer✅✅ CRA
For a bank located in an MSA, which of the following is MOST relevant when identifying the bank's CRA
assessment area? - Correct answer✅✅ Political or geographic subdivisions
A bank may provide services to a non-bank affiliate under contract for fees if ____________. - Correct
answer✅✅ the terms are substantially the same as those prevailing at the time for comparable non-
affiliated transactions
Which of the following types of collateral is EXEMPT from flood insurance regulations? - Correct
answer✅✅ Agricultural land that includes gas or liquid storage tanks
During the past several years, a bank has acquired several banks through merger. Management has
decided to standardize the various deposit products into a simplified list of products, and to change all
accounts accordingly. This will create beneficial changes for some customers and adverse changes for
others. With regard to informing customers of the changes under Regulation DD, the BEST course of
action is to ____________. - Correct answer✅✅ revise the disclosures and mail them with a letter
describing the changes, and stating that account holders should read about the new accounts
Your examiner tells you that your bank is straining its resources by not exempting any of its commercial
account holders from CTR filing. The examiner notes that many of these customers are publicly traded
and could be exempted. Which of the following actions is in the bank's BEST interest? - Correct
answer✅✅ Determine whether granting exemptions is a manageable risk for the bank.
You learn that your bank has created a report of all deposit and loan customers. Presumed gender and
ethnicity for each customer has been assigned based on customer first and/or last names. You should
tell management that they ____________. - Correct answer✅✅ May use the report to conduct an
internal fair lending review
