FDIC RMS MANUAL SECTION 3.2 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026

FDIC RMS MANUAL SECTION 3.2 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026 Estimated Credit Loss - Answers An estimate of the current amount of the loan and lease portfolio that is not likely to be collected. ASC 310 (FAS 114) - Answers Guidance in establishing reserves for impaired credits that are reviewed individually. ASC 450 (FAS 5) - Answers Guidance that addresses the accounting for impairment for groups of loans. Layering - Answers Recording the inappropriate practice of recording in the ALLL more than one amount for the same probable loss. Account Receivable Financing - Answers Commercial lending in which borrowers assign their interests in accounts receivable to the lender as collateral. Leveraged Lending - Answers No set definition but commonly described as: Proceeds used for buyouts Total Debt/EBITDA = 4.0x Senior Debt/EBITDA = 3.0x Borrower with High debt-to-net-worth Or borrower's other debt ratios exceeds industry norms Oil and Gas Lending - Answers Should have detailed report reviewing the Pricing, Discount Factors, and Timing of the potential RBL agreement. Part 365 - Answers Real Estate Lending Standards LTV for Raw Land - Answers 65 percent LTV for Land Development - Answers 75 percent LTV for Commercial, multi-family, and other non-residential construction - Answers 80 percent LTV for 1-4 family construction - Answers 85 percent LTV for improved land - Answers 85 percent LTV for 1-4 family residential - Answers None Part 365 LTV Exception Tracking List Total Limit - Answers 100% of Total Capital Part 365 LTV Exception Tracking List Non 1-4 Limit - Answers 30% of Total Capital Name 2 factors outside of Ag borrower's control? - Answers Commodity prices and weather conditions Installment Loan - Answers small loans scheduled to be amortized over a specific period Loan Participation - Answers sharing or selling of ownership interests in a loan between two or more banks Substandard - Answers Loans that have a well-defined weakness or weaknesses Doubtful - Answers Loans that have a well-defined weakness or weaknesses making collection or liquidation in full high questionable and improbable Loss - Answers Loans that are considered uncollectible Special Mention - Answers Characteristics which corrective management action would remedy Nonaccrual - Answers 91 days or more past due unless well-secured and in the process of collection. Retail Loan Classification:Open-end and closed end loans 90 Days Past Due? - Answers Substandard Retail Loan Classification: Closed-end 120 DPD - Answers Loss Retail Loan Classification: Open-end 180 DPD - Answers Loss Retail Loan Classification: 1-4 90 DPD 65% LTV - Answers Substandard Retail Loan Classification: 1-4 90 DPD 50% LTV - Answers Pass* Retail Loan Classification: Open-end 60 DPD - Answers Pass* Loan Impairment - Answers It is likely that a bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. Troubled Debt Restructuring - Answers takes place when a bank grants a concession to a debtor in financial difficulty. Syndicated Lending - Answers loan that involves two or more banks contracting with a borrower, typically a large or middle market corporation Subprime Lending - Answers No universal definition, but usually defined by lending to higher-risk borrowers Security Agreement - Answers item between a debtor and a secured party that creates or provides for a security interest What are the 3 parts of a secured transaction? - Answers Attachment, security agreement, security interest