CRCM practice test 2 questions n
answers 2026/2027
When should a compliance professional ensure proper support is provided to staff?
A.When an issue arises from a community support group concerning staff volunteering to build a house
B.When training-related issues occur concerning the pass-fail rate
C.When questions are asked concerning policies and procedures with regard to laws and regulations
D.When management requests a secondary review of certain processes - Correct answer✅✅ C
A peer bank with similar consumer products and services has received an enforcement action citing
unfair and deceptive acts and practices when disclosing to customers. What should the compliance
professional do FIRST?
A.Report the enforcement action to his/her bank management and the board
B.Assess and communicate the potential impact to his/her bank
C.Review his/her bank's new product materials and controls
D.Review his/her bank's training materials and existing controls - Correct answer✅✅ B
What should the compliance professional consider a risk when monitoring for compliance with the Fair
Credit Reporting Act (Regulations V and FF)?
A.Adverse action notices were sent to customers who were denied checking accounts
B.Prescreened solicitations do not include an opt-out to be excluded from future screenings
C.Credit reports are pulled on business purpose loans where the applicant has personal liability
D.Firm offers of credit are to be made to qualified applicants without the applicants' prior permission -
Correct answer✅✅ B
On February 8, you assume responsibility as the compliance officer of a HMDA-reporting bank. Prior to
March 1, you should:
A.Conduct a fair lending review.
B.Conduct a comparative file analysis of loans with rate spreads greater than 3%.
,C.Ensure that the data to be submitted are accurate.
D.Compare the prior year's HMDA results with the current year's results. - Correct answer✅✅ C
When preparing an action plan to validate the types of applications that should be included in HMDA
reporting, which of the following is MOST important to include?
A.Consumer-purpose unsecured home improvement loans
B.Consumer-purpose dwelling-secured loans that modify existing loans to provide new money utilized to
improve the borrower's principal dwelling
C.Commercial-purpose loans to purchase warehouses, secured by multi-unit apartment buildings
D.Commercial-purpose lines of credit utilized to improve multi-unit apartment buildings, secured by the
apartment buildings - Correct answer✅✅ D
A compliance professional responsible for ensuring successful implementation of identified corrective
actions must collaborate with impacted lines of business. Which action would a compliance professional
be LEAST likely to take when facilitating corrective actions?
A.Conduct follow-up audits or testing to ensure successful implementation was achieved
B.Conduct a review of the policies and procedures connected to the violation
C.Communicate with the regulator on steps taken to remediate the corrective action as needed
D.Provide an outline to the impacted line of business detailing specific corrections to be made - Correct
answer✅✅ D
What is the FIRST thing the compliance professional should do when assessing the changes to the Home
Mortgage Disclosure Act (Regulation C)?
A.Determine customer privacy rights related to public data
B.Determine the number of new and changed HMDA fields
C.Determine the scope and impact of the proposed changes
D.Determine what type of training will need to be provided - Correct answer✅✅ C
A compliance professional has been tasked with preparing the lines of business for an important
regulatory change. Which step should be taken FIRST?
A.Draft job-specific training to be delivered to impacted lines of business
B.Identify impacted lines of business and develop a team of key stakeholders
, C.Confirm readiness to implement revised guidance on the part of the bank's platform software provider
D.Research, review, and then provide a summary of the impact to the lines of business - Correct
answer✅✅ D
A line of business would like to reduce the number of customer complaints received relating to deposit
holds. The agreed-upon solution is to purchase a new system that will evaluate customer history and the
customer's relationship with the bank. What will be the compliance professional's role for this project?
A.Developing branch training
B.Completing a cost-benefit analysis
C.Obtaining approval from the finance department
D.Validating the system to ensure it complies with regulatory restrictions - Correct answer✅✅ D
When evaluating a bank's Home Mortgage Disclosure Act (Regulation C) platform, which of the following
would be a concern?
A.Whether the data is complete and accurate
B.Whether the unique identifier is sequential
C.Whether the system includes unsecured loans
D.Whether the information is maintained for seven years - Correct answer✅✅ A
During preparation for an exam, a compliance professional discovers process gaps that resulted in
regulatory violations. When is the BEST time to disclose the gap to the exam team?
A.During the opening meeting with the examiners
B.After the examiners detect the gap
C.At the first periodic status update meeting
D.Prior to providing the examination documentation - Correct answer✅✅ D
A loan officer makes a purchase-money mortgage loan to enable a newlywed couple to purchase a 4-
unit residential building. The couple will live in one unit and rent the other three units to low- and
moderate-income families. The loan is for $800,000 for five years. Regulation Z does NOT apply to this
loan because the loan is:
A.Covered under CRA.
B.For only five years.
answers 2026/2027
When should a compliance professional ensure proper support is provided to staff?
A.When an issue arises from a community support group concerning staff volunteering to build a house
B.When training-related issues occur concerning the pass-fail rate
C.When questions are asked concerning policies and procedures with regard to laws and regulations
D.When management requests a secondary review of certain processes - Correct answer✅✅ C
A peer bank with similar consumer products and services has received an enforcement action citing
unfair and deceptive acts and practices when disclosing to customers. What should the compliance
professional do FIRST?
A.Report the enforcement action to his/her bank management and the board
B.Assess and communicate the potential impact to his/her bank
C.Review his/her bank's new product materials and controls
D.Review his/her bank's training materials and existing controls - Correct answer✅✅ B
What should the compliance professional consider a risk when monitoring for compliance with the Fair
Credit Reporting Act (Regulations V and FF)?
A.Adverse action notices were sent to customers who were denied checking accounts
B.Prescreened solicitations do not include an opt-out to be excluded from future screenings
C.Credit reports are pulled on business purpose loans where the applicant has personal liability
D.Firm offers of credit are to be made to qualified applicants without the applicants' prior permission -
Correct answer✅✅ B
On February 8, you assume responsibility as the compliance officer of a HMDA-reporting bank. Prior to
March 1, you should:
A.Conduct a fair lending review.
B.Conduct a comparative file analysis of loans with rate spreads greater than 3%.
,C.Ensure that the data to be submitted are accurate.
D.Compare the prior year's HMDA results with the current year's results. - Correct answer✅✅ C
When preparing an action plan to validate the types of applications that should be included in HMDA
reporting, which of the following is MOST important to include?
A.Consumer-purpose unsecured home improvement loans
B.Consumer-purpose dwelling-secured loans that modify existing loans to provide new money utilized to
improve the borrower's principal dwelling
C.Commercial-purpose loans to purchase warehouses, secured by multi-unit apartment buildings
D.Commercial-purpose lines of credit utilized to improve multi-unit apartment buildings, secured by the
apartment buildings - Correct answer✅✅ D
A compliance professional responsible for ensuring successful implementation of identified corrective
actions must collaborate with impacted lines of business. Which action would a compliance professional
be LEAST likely to take when facilitating corrective actions?
A.Conduct follow-up audits or testing to ensure successful implementation was achieved
B.Conduct a review of the policies and procedures connected to the violation
C.Communicate with the regulator on steps taken to remediate the corrective action as needed
D.Provide an outline to the impacted line of business detailing specific corrections to be made - Correct
answer✅✅ D
What is the FIRST thing the compliance professional should do when assessing the changes to the Home
Mortgage Disclosure Act (Regulation C)?
A.Determine customer privacy rights related to public data
B.Determine the number of new and changed HMDA fields
C.Determine the scope and impact of the proposed changes
D.Determine what type of training will need to be provided - Correct answer✅✅ C
A compliance professional has been tasked with preparing the lines of business for an important
regulatory change. Which step should be taken FIRST?
A.Draft job-specific training to be delivered to impacted lines of business
B.Identify impacted lines of business and develop a team of key stakeholders
, C.Confirm readiness to implement revised guidance on the part of the bank's platform software provider
D.Research, review, and then provide a summary of the impact to the lines of business - Correct
answer✅✅ D
A line of business would like to reduce the number of customer complaints received relating to deposit
holds. The agreed-upon solution is to purchase a new system that will evaluate customer history and the
customer's relationship with the bank. What will be the compliance professional's role for this project?
A.Developing branch training
B.Completing a cost-benefit analysis
C.Obtaining approval from the finance department
D.Validating the system to ensure it complies with regulatory restrictions - Correct answer✅✅ D
When evaluating a bank's Home Mortgage Disclosure Act (Regulation C) platform, which of the following
would be a concern?
A.Whether the data is complete and accurate
B.Whether the unique identifier is sequential
C.Whether the system includes unsecured loans
D.Whether the information is maintained for seven years - Correct answer✅✅ A
During preparation for an exam, a compliance professional discovers process gaps that resulted in
regulatory violations. When is the BEST time to disclose the gap to the exam team?
A.During the opening meeting with the examiners
B.After the examiners detect the gap
C.At the first periodic status update meeting
D.Prior to providing the examination documentation - Correct answer✅✅ D
A loan officer makes a purchase-money mortgage loan to enable a newlywed couple to purchase a 4-
unit residential building. The couple will live in one unit and rent the other three units to low- and
moderate-income families. The loan is for $800,000 for five years. Regulation Z does NOT apply to this
loan because the loan is:
A.Covered under CRA.
B.For only five years.
