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CRCM Questions and Answers (100% Correct
Answers) Already Graded A+
When developing a training plan for commercial lenders, which of the
following regulations is least important to include? Ans: Truth in Lending
Act, CFPB Regulation Z
The federal banking agencies have proposed an amendment to
© 2026 Assignment Expert
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?
Ans: Prepare a summary document that outlines the effects the
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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? Ans: 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? Ans:
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
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2
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? Ans: 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
© 2026 Assignment Expert
reviewed the files and agreed with the examiners' finding. What should
be done FIRST? Ans: Review the bank's flood policies and procedures to
determine where the compliance failure occurred
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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? Ans: 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? Ans: 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
,For Expert help and assignment handling,
3
account. These procedures should include all of the following criteria
EXCEPT ____________. Ans: notifying the customer
Your bank is considering closing a branch office. You should review
which of the following FIRST? Ans: 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? Ans: The APY
© 2026 Assignment Expert
The examiners criticized your bank at the last examination for failing to
conduct a BSA/AML risk assessment of its operations. You have been
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asked to complete the assessment. Which of the following categories is
NOT suggested by the FFIEC Examination Manual for your risk
assessment? Ans: 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?
Ans: 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? Ans: 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? Ans: the withdrawal and substitution will not cause the
existing loan to exceed the maximum 50% loan to collateral value
, For Expert help and assignment handling,
4
When conducting an audit of IRS tax compliance procedures, you
should select a sample of which of the following forms? Ans: 1099A
The loan originators for consumer credit transactions secured by a
dwelling in your institution are subject to all of the following requirements
EXCEPT: Ans: Membership in the National Mortgage Loan Originator
Society (NMLOS)
RESPA prohibits which of the following bank practices? Ans: Receiving
complimentary flood certifications for its real estate portfolio when
© 2026 Assignment Expert
contracting for future flood determination services
Under FIRREA Appraisal Standards, the definition of ''market value'' is NOT
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based on the consummation of a sale and passing of title under
conditions whereby: Ans: 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? Ans: 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? Ans: Distribute the summary and advise
that the financial institution may send a comment letter.
1
CRCM Questions and Answers (100% Correct
Answers) Already Graded A+
When developing a training plan for commercial lenders, which of the
following regulations is least important to include? Ans: Truth in Lending
Act, CFPB Regulation Z
The federal banking agencies have proposed an amendment to
© 2026 Assignment Expert
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?
Ans: Prepare a summary document that outlines the effects the
Guru01 - Stuvia
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? Ans: 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? Ans:
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
,For Expert help and assignment handling,
2
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? Ans: 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
© 2026 Assignment Expert
reviewed the files and agreed with the examiners' finding. What should
be done FIRST? Ans: Review the bank's flood policies and procedures to
determine where the compliance failure occurred
Guru01 - Stuvia
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? Ans: 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? Ans: 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
,For Expert help and assignment handling,
3
account. These procedures should include all of the following criteria
EXCEPT ____________. Ans: notifying the customer
Your bank is considering closing a branch office. You should review
which of the following FIRST? Ans: 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? Ans: The APY
© 2026 Assignment Expert
The examiners criticized your bank at the last examination for failing to
conduct a BSA/AML risk assessment of its operations. You have been
Guru01 - Stuvia
asked to complete the assessment. Which of the following categories is
NOT suggested by the FFIEC Examination Manual for your risk
assessment? Ans: 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?
Ans: 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? Ans: 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? Ans: the withdrawal and substitution will not cause the
existing loan to exceed the maximum 50% loan to collateral value
, For Expert help and assignment handling,
4
When conducting an audit of IRS tax compliance procedures, you
should select a sample of which of the following forms? Ans: 1099A
The loan originators for consumer credit transactions secured by a
dwelling in your institution are subject to all of the following requirements
EXCEPT: Ans: Membership in the National Mortgage Loan Originator
Society (NMLOS)
RESPA prohibits which of the following bank practices? Ans: Receiving
complimentary flood certifications for its real estate portfolio when
© 2026 Assignment Expert
contracting for future flood determination services
Under FIRREA Appraisal Standards, the definition of ''market value'' is NOT
Guru01 - Stuvia
based on the consummation of a sale and passing of title under
conditions whereby: Ans: 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? Ans: 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? Ans: Distribute the summary and advise
that the financial institution may send a comment letter.
