CRCM End of the Book Quiz – Tier 1 Regulations Part 1 |
Practice Questions & Answers 2026/2027
1 of 108
Term
First National Bank's mortgage department has a large escrow
operation for taxes and insurance. At closing what may the bank
require of the borrowers?
Give this one a try later!
Refused the transaction. The bank Perform a geographic analysis of
should not carry out a transaction lending levels and dispersion of
that will result in a BSA violation. loans.
Pay all taxes Due The nature of the relationship
Pay 1/6th of the amount owing between the referring party and the
for the next year service provider.
Don't know?
, 2 of 108
Definition
Send the consumer a notice that explains why bill error occured
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What must a married couple do to waive their right of rescission on their residential
property? Hint: All parties with the right to rescind must sign it, and must describe
the reason for the waiver.
If a bank completes an investigation of an alleged billing error and determines
that no billing error occurred and the consumer owes all or part of the
amount, what must the bank do?
A bank's compliance officer received a complaint from a credit card customer
indicating that she received her credit card statement and noted that her credit limit
had been reduced to less than the balance she owes. She claims that she was
charged an over-the-limit fee before the she was informed. The compliance officer
reviewed the estatement and determined that the customer was correct. If the bank
determined that the credit limit should be lowered, what should have it done?
Borrower A has a variable rate loan secured by his principal dwelling for a term of 10
years. Which of the following is NOT a Truth in Lending requirement for his loan?
Don't know?
3 of 108
,Definition
To approve the Bank's CRA statement at an annual board meeting.
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Which of the following is NOT a requirement of CRA?
Which of the following closed-end loans is subject to the right of rescission? Hint:
Each consumer with an ownership interest in the home has the right to rescind the
transaction.
Which of the following features is acceptable in a high-cost mortgage loan? Hint:
Prepayment penalties are acceptable if limited to the first 36 months of the loan.
Which of the following charges is generally considered to be a prepaid finance
charge? Hint: Costs of obtaining credit.
Don't know?
4 of 108
Term
What must a married couple do to waive their right of rescission on
their residential property? Hint: All parties with the right to rescind
must sign it, and must describe the reason for the waiver.
, Give this one a try later!
A prepayment payment penalty
Copies of the tax return of the
provision effective for the year of the
correspondent bank.
loan.
Sign a written statement
Disclosure must be in a form the
indicating the reason for the
borrower can keep.
waiver.
Don't know?
5 of 108
Definition
Although First National Bank ran a credit report before issuing the first
GFE, they didn't look closely at it until a few days later. Now that they
have, they determine that the interest rate they quoted is not adequate
for the risk and re-issue the GFE showing a higher interest rate and
points.
Give this one a try later!
Practice Questions & Answers 2026/2027
1 of 108
Term
First National Bank's mortgage department has a large escrow
operation for taxes and insurance. At closing what may the bank
require of the borrowers?
Give this one a try later!
Refused the transaction. The bank Perform a geographic analysis of
should not carry out a transaction lending levels and dispersion of
that will result in a BSA violation. loans.
Pay all taxes Due The nature of the relationship
Pay 1/6th of the amount owing between the referring party and the
for the next year service provider.
Don't know?
, 2 of 108
Definition
Send the consumer a notice that explains why bill error occured
Give this one a try later!
What must a married couple do to waive their right of rescission on their residential
property? Hint: All parties with the right to rescind must sign it, and must describe
the reason for the waiver.
If a bank completes an investigation of an alleged billing error and determines
that no billing error occurred and the consumer owes all or part of the
amount, what must the bank do?
A bank's compliance officer received a complaint from a credit card customer
indicating that she received her credit card statement and noted that her credit limit
had been reduced to less than the balance she owes. She claims that she was
charged an over-the-limit fee before the she was informed. The compliance officer
reviewed the estatement and determined that the customer was correct. If the bank
determined that the credit limit should be lowered, what should have it done?
Borrower A has a variable rate loan secured by his principal dwelling for a term of 10
years. Which of the following is NOT a Truth in Lending requirement for his loan?
Don't know?
3 of 108
,Definition
To approve the Bank's CRA statement at an annual board meeting.
Give this one a try later!
Which of the following is NOT a requirement of CRA?
Which of the following closed-end loans is subject to the right of rescission? Hint:
Each consumer with an ownership interest in the home has the right to rescind the
transaction.
Which of the following features is acceptable in a high-cost mortgage loan? Hint:
Prepayment penalties are acceptable if limited to the first 36 months of the loan.
Which of the following charges is generally considered to be a prepaid finance
charge? Hint: Costs of obtaining credit.
Don't know?
4 of 108
Term
What must a married couple do to waive their right of rescission on
their residential property? Hint: All parties with the right to rescind
must sign it, and must describe the reason for the waiver.
, Give this one a try later!
A prepayment payment penalty
Copies of the tax return of the
provision effective for the year of the
correspondent bank.
loan.
Sign a written statement
Disclosure must be in a form the
indicating the reason for the
borrower can keep.
waiver.
Don't know?
5 of 108
Definition
Although First National Bank ran a credit report before issuing the first
GFE, they didn't look closely at it until a few days later. Now that they
have, they determine that the interest rate they quoted is not adequate
for the risk and re-issue the GFE showing a higher interest rate and
points.
Give this one a try later!
