New CRCM Exam Questions 2026/2027 | Updated Practice Questions,
Answers & Study Guide
In which of the following transactions is a disclosure statement to the consumer required? - Correct
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? - Correct answer✅✅
Points paid by the borrower in cash at closing
Which of these transactions requires the earliest disclosure? - Correct 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? - Correct 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? - Correct
answer✅✅ Two years after the disclosures are required 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? - Correct 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? - Correct
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? - Correct
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? - Correct 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 previous year. Of the following statements, which is true
regarding the Truth in Lending requirements applicable to this fee? - Correct 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? - Correct 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? - Correct 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"? -
Correct 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? -
Correct answer✅✅ Right of rescission applies only to transactions secured by the consumer's principal
dwelling
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? - Correct 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? - Correct 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)
A consumer customer reports to First National Bank's credit card department that his credit card
periodic statement contains an amount that is incorrect. What should the bank do? - Correct
answer✅✅ Conduct an investigation and mail within 30 days an acknowledgement of the error notice,
a correction of the error, or a notice that there is no error
If a bank completes an investigation of an alleged billing error and determines that no billing error
occurred and the consumer owes all or part of the amount, what must the bank do? - Correct
answer✅✅ Send the consumer a notice that explains why no billing error occurred
Which of the following situations is NOT considered a billing error? - Correct answer✅✅ The inclusion
of a change for an item the quality of which dissatisfied the consumer
For which disclosure must a bank obtain a customer's affirmative consent before delivery? - Correct
answer✅✅ An electronic disclosure statement on a car loan
What must a married couple do to waive their right of rescission on their residential property? - Correct
answer✅✅ Sign a written statement indicating the reason for the waiver
A creditor receives a phone application for a home equity line of credit. Before the time period for
mailing out the early disclosure and the Regulation Z mandated brochure, the creditor reviews the
applicant's credit history and discovers the applicant will not qualify for the line of credit due to a
bankruptcy filing last year. Which of the following BEST describes how Regulation Z treats this situation?
- Correct answer✅✅ If the credit denial was made within the period of time Regulation Z allows for
mailing the early disclosures and brochure, the creditor does not have to send the early disclosures or
the brochure
In determining a prepaid finance charge for a final APR calculation, a compliance officer notes an
unusual settlement agent fee. What should the compliance officer FIRST determine? - Correct
answer✅✅ Whether the fee is charged in a comparable cash transaction
On January 10 ABC Bank decides to send an advertising piece to consumers in its local community to
promote its home equity lines of credit. The ad will be sent via email. The bank's home equity product
, has an interest rate based upon the national prime rate plus a five percentage margin. However, the
bank is offering a lower promotional interest rate that is fixed for six months. In the ad, the bank plans
to disclose the promotional rate and the fact that it is valid for six months from the date of loan closing.
The bank will also disclose an actual APR charged on this product during the previous November. The ad
will also include a list of all the fees required to close the loan and the maximum APR that can be
charged under the plan. Will this ad meet TILA requirements? - Correct answer✅✅ No, the ad must
disclose a rate used during the 30 days before the date the ad is transmitted
Which of the following features is acceptable in a high cost mortgage loan? - Correct answer✅✅ A
prepayment payment penalty provision effective for the first year of the loan
If a loan is to be secured by a consumer's principal dwelling, which of the following actions is prohibited
with regard to an appraiser? - Correct answer✅✅ The banker tells the appraiser that the appraisal will
need to show that the property is worth at least $100,000, or the bank will not be able to make the loan.
How must a card issuer disclose a minimum payment on a periodic statement for an open-end credit
account that is not home secured? - Correct answer✅✅ By disclosing the estimated monthly payment
for repaying in 36 months
When credit card checks accessing open-end accounts (not home secured) are sent to a borrower and
the finance charge terms are different than originally disclosed, when must the disclosures be displayed
prominently on the front page of the check? - Correct answer✅✅ When provide more than 30 days
after the account is opened
If a bank is charging a premium rate in a credit card solicitation, how must it disclose this rate? - Correct
answer✅✅ In 16 point type
A bank's compliance officer received a complaint from a credit card customer indicating that she
received her credit card statement and noted that her credit limited had been reduced to less than the
balance she owes. She claims that she was charged an over the limit fee before she was informed. The
compliance officer reviewed the statement and determined that the customer was correct. If the bank
determined that the credit limit should be lowered, what should it have done? - Correct answer✅✅
Provide notice 45 days before the decrease to the credit limit
On Monday, ABC Bank received a written application from the Browns for a loan to purchase their
home. Later that day ABC mailed the Browns their early TILA disclosures. On what day may ABC debit
the Browns account for an application fee? - Correct answer✅✅ Friday
Answers & Study Guide
In which of the following transactions is a disclosure statement to the consumer required? - Correct
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? - Correct answer✅✅
Points paid by the borrower in cash at closing
Which of these transactions requires the earliest disclosure? - Correct 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? - Correct 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? - Correct
answer✅✅ Two years after the disclosures are required 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? - Correct 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? - Correct
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? - Correct
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? - Correct 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 previous year. Of the following statements, which is true
regarding the Truth in Lending requirements applicable to this fee? - Correct 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? - Correct 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? - Correct 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"? -
Correct 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? -
Correct answer✅✅ Right of rescission applies only to transactions secured by the consumer's principal
dwelling
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? - Correct 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? - Correct 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)
A consumer customer reports to First National Bank's credit card department that his credit card
periodic statement contains an amount that is incorrect. What should the bank do? - Correct
answer✅✅ Conduct an investigation and mail within 30 days an acknowledgement of the error notice,
a correction of the error, or a notice that there is no error
If a bank completes an investigation of an alleged billing error and determines that no billing error
occurred and the consumer owes all or part of the amount, what must the bank do? - Correct
answer✅✅ Send the consumer a notice that explains why no billing error occurred
Which of the following situations is NOT considered a billing error? - Correct answer✅✅ The inclusion
of a change for an item the quality of which dissatisfied the consumer
For which disclosure must a bank obtain a customer's affirmative consent before delivery? - Correct
answer✅✅ An electronic disclosure statement on a car loan
What must a married couple do to waive their right of rescission on their residential property? - Correct
answer✅✅ Sign a written statement indicating the reason for the waiver
A creditor receives a phone application for a home equity line of credit. Before the time period for
mailing out the early disclosure and the Regulation Z mandated brochure, the creditor reviews the
applicant's credit history and discovers the applicant will not qualify for the line of credit due to a
bankruptcy filing last year. Which of the following BEST describes how Regulation Z treats this situation?
- Correct answer✅✅ If the credit denial was made within the period of time Regulation Z allows for
mailing the early disclosures and brochure, the creditor does not have to send the early disclosures or
the brochure
In determining a prepaid finance charge for a final APR calculation, a compliance officer notes an
unusual settlement agent fee. What should the compliance officer FIRST determine? - Correct
answer✅✅ Whether the fee is charged in a comparable cash transaction
On January 10 ABC Bank decides to send an advertising piece to consumers in its local community to
promote its home equity lines of credit. The ad will be sent via email. The bank's home equity product
, has an interest rate based upon the national prime rate plus a five percentage margin. However, the
bank is offering a lower promotional interest rate that is fixed for six months. In the ad, the bank plans
to disclose the promotional rate and the fact that it is valid for six months from the date of loan closing.
The bank will also disclose an actual APR charged on this product during the previous November. The ad
will also include a list of all the fees required to close the loan and the maximum APR that can be
charged under the plan. Will this ad meet TILA requirements? - Correct answer✅✅ No, the ad must
disclose a rate used during the 30 days before the date the ad is transmitted
Which of the following features is acceptable in a high cost mortgage loan? - Correct answer✅✅ A
prepayment payment penalty provision effective for the first year of the loan
If a loan is to be secured by a consumer's principal dwelling, which of the following actions is prohibited
with regard to an appraiser? - Correct answer✅✅ The banker tells the appraiser that the appraisal will
need to show that the property is worth at least $100,000, or the bank will not be able to make the loan.
How must a card issuer disclose a minimum payment on a periodic statement for an open-end credit
account that is not home secured? - Correct answer✅✅ By disclosing the estimated monthly payment
for repaying in 36 months
When credit card checks accessing open-end accounts (not home secured) are sent to a borrower and
the finance charge terms are different than originally disclosed, when must the disclosures be displayed
prominently on the front page of the check? - Correct answer✅✅ When provide more than 30 days
after the account is opened
If a bank is charging a premium rate in a credit card solicitation, how must it disclose this rate? - Correct
answer✅✅ In 16 point type
A bank's compliance officer received a complaint from a credit card customer indicating that she
received her credit card statement and noted that her credit limited had been reduced to less than the
balance she owes. She claims that she was charged an over the limit fee before she was informed. The
compliance officer reviewed the statement and determined that the customer was correct. If the bank
determined that the credit limit should be lowered, what should it have done? - Correct answer✅✅
Provide notice 45 days before the decrease to the credit limit
On Monday, ABC Bank received a written application from the Browns for a loan to purchase their
home. Later that day ABC mailed the Browns their early TILA disclosures. On what day may ABC debit
the Browns account for an application fee? - Correct answer✅✅ Friday
