New CRCM – Questions 2025/2026 Exam
All Answers and Illustrations Given
In which of the following transactions is a disclosure statement to the
consumer required? - 🧠ANSWER ✔✔A $125,000 loan to purchase and
secured by an unimproved lot on which the borrower eventually plans to
build a home for retirement
Which of the following charges is generally to be a prepaid finance charge?
- 🧠ANSWER ✔✔Points paid by the borrower in cash at closing
Which of these transactions requires the earliest disclosure? - 🧠ANSWER
✔✔A $200,000 loan with a variable interest rate to purchase a residence
If an advertisement for a lender's mortgage loan product states that "we
offer 15 and 30 year loans," what additional disclosures are required by
Regulation Z? - 🧠ANSWER ✔✔The terms repayment, amount of the down
payment (in a credit sale), and the APR
For how long must a lender retain evidence of compliance with the Truth in
Lending Act? - 🧠ANSWER ✔✔Two years after the disclosures are required
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
1
,to be made, except for mortgages, which have a five year retention
requirement
Which of the following closed-end loans is subject to the right of rescission?
- 🧠ANSWER ✔✔A home improvement loan for the borrower's principal
dwelling, secured by the dwelling
For how long may consumers exercise the right to rescind transactions in
closed-end loans? - 🧠ANSWER ✔✔Three business days after the later of
the consummation, delivery of notice of the right to rescind, or delivery of
required disclosures
Which of the following disclosures is NOT required on the itemization of
amount financed? - 🧠ANSWER ✔✔An itemization of the various types of
finance charges
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? - 🧠ANSWER ✔✔Limiting the number of interest
rate increases in each calendar year
The State National Bank credit card program includes an annual fee that
equals a percentage of the average balance of the account during the
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
2
,previous year. Of the following statements, which is true regarding the
Truth in Lending requirements applicable to this fee? - 🧠ANSWER ✔✔The
bank must disclose in the initial application or solicitation either the fee
amount or the percentage amount and identify the amount against which
the percentage is based
Which statement is NOT true regarding the application disclosure made by
the lender on a home equity open-end plan? - 🧠ANSWER ✔✔Disclosure
must be in a form the borrower can keep
In an open-end account that is NOT a home equity plan, which of the
following does NOT have to provided to the consumer? - 🧠ANSWER ✔✔A
brochure with a transaction example of $1,000 balance for six months
When must a notice be received from a consumer in order to be considered
a "billing error notice"? - 🧠ANSWER ✔✔Within 60 days after the first
statement that reflected the error
Which statement is true regarding a consumer's right to rescind an open-
end credit transaction? - 🧠ANSWER ✔✔Right of rescission applies only to
transactions secured by the consumer's principal dwelling
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, When a bank makes a rescindable closed-end home improvement loan to
a consumer, to which of the following may the bank advance funds before
the end of the rescission period? - 🧠ANSWER ✔✔To an escrow account
with a third-party escrow agent
First National Bank agreed to make a rescindable closed-end home
improvement loan to Mr. and Mrs. Smith. The Notice of the Right to
Rescind was given to the Smiths on Tuesday at the closing of the loan
along with the material disclosures. The Smiths purchased a title policy and
paid for a property appraisal for the bank in connection with the transaction.
A lien was filed against the Smiths' home on Tuesday afternoon. The bank
funded the loan on Friday morning at the request of Mr. Smith by crediting
the Smiths' joint checking account with the loan proceeds. On Friday
afternoon Mrs. Smith has a change of heart concerning the transaction and
deposits a rescission notice in the mail to the bank. The bank receives the
notice on Tuesday morning. All funds have been withdrawn from the
account. What should the bank do? - 🧠ANSWER ✔✔Release the lien on
the property immediately, then refund to the Smiths the amounts they
spend for the title policy and appraisal, and then demand repayment of the
loan (without interest)
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
4
All Answers and Illustrations Given
In which of the following transactions is a disclosure statement to the
consumer required? - 🧠ANSWER ✔✔A $125,000 loan to purchase and
secured by an unimproved lot on which the borrower eventually plans to
build a home for retirement
Which of the following charges is generally to be a prepaid finance charge?
- 🧠ANSWER ✔✔Points paid by the borrower in cash at closing
Which of these transactions requires the earliest disclosure? - 🧠ANSWER
✔✔A $200,000 loan with a variable interest rate to purchase a residence
If an advertisement for a lender's mortgage loan product states that "we
offer 15 and 30 year loans," what additional disclosures are required by
Regulation Z? - 🧠ANSWER ✔✔The terms repayment, amount of the down
payment (in a credit sale), and the APR
For how long must a lender retain evidence of compliance with the Truth in
Lending Act? - 🧠ANSWER ✔✔Two years after the disclosures are required
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
1
,to be made, except for mortgages, which have a five year retention
requirement
Which of the following closed-end loans is subject to the right of rescission?
- 🧠ANSWER ✔✔A home improvement loan for the borrower's principal
dwelling, secured by the dwelling
For how long may consumers exercise the right to rescind transactions in
closed-end loans? - 🧠ANSWER ✔✔Three business days after the later of
the consummation, delivery of notice of the right to rescind, or delivery of
required disclosures
Which of the following disclosures is NOT required on the itemization of
amount financed? - 🧠ANSWER ✔✔An itemization of the various types of
finance charges
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? - 🧠ANSWER ✔✔Limiting the number of interest
rate increases in each calendar year
The State National Bank credit card program includes an annual fee that
equals a percentage of the average balance of the account during the
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
2
,previous year. Of the following statements, which is true regarding the
Truth in Lending requirements applicable to this fee? - 🧠ANSWER ✔✔The
bank must disclose in the initial application or solicitation either the fee
amount or the percentage amount and identify the amount against which
the percentage is based
Which statement is NOT true regarding the application disclosure made by
the lender on a home equity open-end plan? - 🧠ANSWER ✔✔Disclosure
must be in a form the borrower can keep
In an open-end account that is NOT a home equity plan, which of the
following does NOT have to provided to the consumer? - 🧠ANSWER ✔✔A
brochure with a transaction example of $1,000 balance for six months
When must a notice be received from a consumer in order to be considered
a "billing error notice"? - 🧠ANSWER ✔✔Within 60 days after the first
statement that reflected the error
Which statement is true regarding a consumer's right to rescind an open-
end credit transaction? - 🧠ANSWER ✔✔Right of rescission applies only to
transactions secured by the consumer's principal dwelling
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, When a bank makes a rescindable closed-end home improvement loan to
a consumer, to which of the following may the bank advance funds before
the end of the rescission period? - 🧠ANSWER ✔✔To an escrow account
with a third-party escrow agent
First National Bank agreed to make a rescindable closed-end home
improvement loan to Mr. and Mrs. Smith. The Notice of the Right to
Rescind was given to the Smiths on Tuesday at the closing of the loan
along with the material disclosures. The Smiths purchased a title policy and
paid for a property appraisal for the bank in connection with the transaction.
A lien was filed against the Smiths' home on Tuesday afternoon. The bank
funded the loan on Friday morning at the request of Mr. Smith by crediting
the Smiths' joint checking account with the loan proceeds. On Friday
afternoon Mrs. Smith has a change of heart concerning the transaction and
deposits a rescission notice in the mail to the bank. The bank receives the
notice on Tuesday morning. All funds have been withdrawn from the
account. What should the bank do? - 🧠ANSWER ✔✔Release the lien on
the property immediately, then refund to the Smiths the amounts they
spend for the title policy and appraisal, and then demand repayment of the
loan (without interest)
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
4
