CRCM Practice Exam 2 2026/2027 | Exam
Questions, Answers & Certification Study
Guide
1 of 62
Term
The compliance professional identified that system reporting to the
credit bureaus is not reporting delinquent loans accurately. What
should be done FIRST to resolve the issue?
Give this one a try later!
Underwriting has a no exceptions policy and a report is run weekly to confirm
If products are implemented without review, consideration, or input, significant
compliance issues could be present without being identified during development
or implementation. This is a serious gap in the bank's control process. Inherent risk
would not be identified, but this is not the element that is missing in this scenario.
Inherent risk is present regardless of any controls or other issues at all banks.
Volume and products are not relevant concerns here.
,Marketing staff
The Children's Online Privacy Protection Act, or COPPA, involves privacy
protections for persons under the age of 13 when marketing products and services.
COPPA training is most appropriate for marketing personnel, as opposed to
personal bankers and mortgage lenders. The technology team may benefit
somewhat from COPPA training, but not to the same degree as would marketing
staff.
Review the system controls and reporting requirements to understand the
root cause of the issue
Solution: The correct answer is D.
Whenever a compliance gap is identified, it is imperative to understand what is
causing the gap, especially when technology is involved. This is part of the
root cause analysis. Training and risk assessments are useful, but they would
not be the first steps to take. And escalation to senior management without
any sort of context or possible explanation as to what is causing the problem,
or whether it even truly is a problem, would be irresponsible.
Develop a plan to start reviewing the current year's CRA data and monitor the
errors and come up with ways to prevent future errors
Don't know?
, 2 of 62
Term
A customer complains their mortgage lien has not been released.
Records indicate the loan was paid in full 45 days ago. Reviewing the
complaint log reveals several other customers have complained of
mortgage liens not having a timely release. Which course of action
should the compliance professional take FIRST?
Give this one a try later!
C.For a business purpose. Add the text EHL and house logo
Review the current lien release Report the issue to the appropriate
process. levels of management.
Don't know?
3 of 62
Term
When should a compliance professional ensure proper support is
provided to staff?
Give this one a try later!
, Mortgage loans secured by dwellings require the use of the Standard Flood Hazard
Determination Form to document whether or not the property is in a flood zone
Under the Flood Insurance regulations and Interagency Questions and Answers, any
loan or line of credit secured by a structure must include a flood hazard
determination, which is evidenced by the Standard Flood Hazard Determination
Form. Each of the other choices is correct in and of itself, but the MOST important
concept, the one that would result in a violation of the regulation were it not to be
followed, is the Standard Flood Hazard Determination Form.
A.The disclosed APR and actual APR
Solution: The correct answer is A.
To determine whether an APR has been understated, the two obvious data points
are the disclosed APR and actual APR. Only then can you determine whether the
difference is a compliance issue under Regulation Z. examining the total payments
on the TIL disclosure and amount of prepaid finance charges are not enough to
make that determination. And the amount of collateral has no bearing at all on an
APR understatement.
There must be an alternative solution if the vendor does not meet the requirements
as of the effective date
When a regulatory change is announced that clearly affects a bank (meaning it must
comply), it is the bank's responsibility to ensure compliance takes place by the
effective date. It is not the vendor's responsibility; it is the bank's responsibility.
Completing the notices manually is not an ideal solution. There must be an
alternative solution if the vendor is unable to meet the requirement by the effective
date.
When questions are asked concerning policies and procedures with regard to
laws and regulations
If a bank is to have an effective Compliance Management System (CMS), it
must provide proper support to staff, and providing answers to law- and
regulation-related policies and procedures are primary in this objective.
Responding to management when it requests a secondary review of
Questions, Answers & Certification Study
Guide
1 of 62
Term
The compliance professional identified that system reporting to the
credit bureaus is not reporting delinquent loans accurately. What
should be done FIRST to resolve the issue?
Give this one a try later!
Underwriting has a no exceptions policy and a report is run weekly to confirm
If products are implemented without review, consideration, or input, significant
compliance issues could be present without being identified during development
or implementation. This is a serious gap in the bank's control process. Inherent risk
would not be identified, but this is not the element that is missing in this scenario.
Inherent risk is present regardless of any controls or other issues at all banks.
Volume and products are not relevant concerns here.
,Marketing staff
The Children's Online Privacy Protection Act, or COPPA, involves privacy
protections for persons under the age of 13 when marketing products and services.
COPPA training is most appropriate for marketing personnel, as opposed to
personal bankers and mortgage lenders. The technology team may benefit
somewhat from COPPA training, but not to the same degree as would marketing
staff.
Review the system controls and reporting requirements to understand the
root cause of the issue
Solution: The correct answer is D.
Whenever a compliance gap is identified, it is imperative to understand what is
causing the gap, especially when technology is involved. This is part of the
root cause analysis. Training and risk assessments are useful, but they would
not be the first steps to take. And escalation to senior management without
any sort of context or possible explanation as to what is causing the problem,
or whether it even truly is a problem, would be irresponsible.
Develop a plan to start reviewing the current year's CRA data and monitor the
errors and come up with ways to prevent future errors
Don't know?
, 2 of 62
Term
A customer complains their mortgage lien has not been released.
Records indicate the loan was paid in full 45 days ago. Reviewing the
complaint log reveals several other customers have complained of
mortgage liens not having a timely release. Which course of action
should the compliance professional take FIRST?
Give this one a try later!
C.For a business purpose. Add the text EHL and house logo
Review the current lien release Report the issue to the appropriate
process. levels of management.
Don't know?
3 of 62
Term
When should a compliance professional ensure proper support is
provided to staff?
Give this one a try later!
, Mortgage loans secured by dwellings require the use of the Standard Flood Hazard
Determination Form to document whether or not the property is in a flood zone
Under the Flood Insurance regulations and Interagency Questions and Answers, any
loan or line of credit secured by a structure must include a flood hazard
determination, which is evidenced by the Standard Flood Hazard Determination
Form. Each of the other choices is correct in and of itself, but the MOST important
concept, the one that would result in a violation of the regulation were it not to be
followed, is the Standard Flood Hazard Determination Form.
A.The disclosed APR and actual APR
Solution: The correct answer is A.
To determine whether an APR has been understated, the two obvious data points
are the disclosed APR and actual APR. Only then can you determine whether the
difference is a compliance issue under Regulation Z. examining the total payments
on the TIL disclosure and amount of prepaid finance charges are not enough to
make that determination. And the amount of collateral has no bearing at all on an
APR understatement.
There must be an alternative solution if the vendor does not meet the requirements
as of the effective date
When a regulatory change is announced that clearly affects a bank (meaning it must
comply), it is the bank's responsibility to ensure compliance takes place by the
effective date. It is not the vendor's responsibility; it is the bank's responsibility.
Completing the notices manually is not an ideal solution. There must be an
alternative solution if the vendor is unable to meet the requirement by the effective
date.
When questions are asked concerning policies and procedures with regard to
laws and regulations
If a bank is to have an effective Compliance Management System (CMS), it
must provide proper support to staff, and providing answers to law- and
regulation-related policies and procedures are primary in this objective.
Responding to management when it requests a secondary review of
