A+
CRCM 2025/2026 Exam Questions and
Correct Answers | New Update
During a recent compliance examination, regulators cited the bank for violations of
various marketing regulations. How should the compliance professional FIRST
respond? - 🧠ANSWER ✔✔Review the marketing materials and applicable
regulations to verify the finding.
When a bank is cited for a regulatory violation, the compliance professional must
first determine whether the bank should agree with it. This is done by reviewing
the pertinent regulations and affected materials. If the citation is supported by the
regulations, then the compliance manager should discuss it with the marketing
manager. Solutions may include training marketing personnel or establishing new
policies for reviews.
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
1
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, A+
with the examiners' finding. What should be done FIRST? - 🧠ANSWER
✔✔Review the bank's flood policies and procedures to determine where the
compliance failure occurred.
If the compliance professional agrees with the regulators on a finding, the root
cause of the error must be determined by consulting policies and procedures. There
is no benefit to conducting a risk assessment because the issue is known. After
determining the cause, then the extent of the problem must be determined. Only
after gathering this pertinent information can the compliance professional write an
analysis for management explaining the situation
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? -
🧠ANSWER ✔✔Form a task force of the business unit managers whose
departments will be affected by the law to collectively form an action plan.
When implementing new rules, it is beneficial to start with a task force of affected
managers that can make decisions about how to implement the new rule. The other
2
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, A+
actions would eventually become necessary, but it would be timelier to write the
new policy and then develop training only after the compliance professional has a
clearer idea of needed actions. Talking to the bank president about resources would
not be helpful to implementing new legislation, unless it can be shown as
necessary to complying as the business units have chosen.
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? - 🧠ANSWER ✔✔Prepare a summary document that
outlines the effects the proposed rule would have on the bank's operations.
This proposed change is important to the bank. The compliance professional
should first analyze its effect and provide that summary to the affected business
units, and then establish a task force to study the proposal. Contacting the vendor
may be part of the risk considered by the task force. Training bank staff regarding
the new rule is not appropriate until the rule is final. Proposed rules sometimes do
not become final or may change with the final ruling.
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, A+
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? - 🧠ANSWER
✔✔Document the fact that the level of risk present with manual systems is
acceptable to the mortgage department business unit.
The job of the compliance officer is to assess the risks and inform management of
those risks. The business unit can decide what level of risk to accept. If the high
level of HMDA errors continues, even with the improved procedures, the problem
can be escalated and brought to senior management's attention.
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
4
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
CRCM 2025/2026 Exam Questions and
Correct Answers | New Update
During a recent compliance examination, regulators cited the bank for violations of
various marketing regulations. How should the compliance professional FIRST
respond? - 🧠ANSWER ✔✔Review the marketing materials and applicable
regulations to verify the finding.
When a bank is cited for a regulatory violation, the compliance professional must
first determine whether the bank should agree with it. This is done by reviewing
the pertinent regulations and affected materials. If the citation is supported by the
regulations, then the compliance manager should discuss it with the marketing
manager. Solutions may include training marketing personnel or establishing new
policies for reviews.
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
1
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, A+
with the examiners' finding. What should be done FIRST? - 🧠ANSWER
✔✔Review the bank's flood policies and procedures to determine where the
compliance failure occurred.
If the compliance professional agrees with the regulators on a finding, the root
cause of the error must be determined by consulting policies and procedures. There
is no benefit to conducting a risk assessment because the issue is known. After
determining the cause, then the extent of the problem must be determined. Only
after gathering this pertinent information can the compliance professional write an
analysis for management explaining the situation
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? -
🧠ANSWER ✔✔Form a task force of the business unit managers whose
departments will be affected by the law to collectively form an action plan.
When implementing new rules, it is beneficial to start with a task force of affected
managers that can make decisions about how to implement the new rule. The other
2
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, A+
actions would eventually become necessary, but it would be timelier to write the
new policy and then develop training only after the compliance professional has a
clearer idea of needed actions. Talking to the bank president about resources would
not be helpful to implementing new legislation, unless it can be shown as
necessary to complying as the business units have chosen.
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? - 🧠ANSWER ✔✔Prepare a summary document that
outlines the effects the proposed rule would have on the bank's operations.
This proposed change is important to the bank. The compliance professional
should first analyze its effect and provide that summary to the affected business
units, and then establish a task force to study the proposal. Contacting the vendor
may be part of the risk considered by the task force. Training bank staff regarding
the new rule is not appropriate until the rule is final. Proposed rules sometimes do
not become final or may change with the final ruling.
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, A+
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? - 🧠ANSWER
✔✔Document the fact that the level of risk present with manual systems is
acceptable to the mortgage department business unit.
The job of the compliance officer is to assess the risks and inform management of
those risks. The business unit can decide what level of risk to accept. If the high
level of HMDA errors continues, even with the improved procedures, the problem
can be escalated and brought to senior management's attention.
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
4
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
