CRCM 2025/2026 Exam Questions and
Corresponding Answers with Surety of
100% Pass Mark
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 with the examiners' finding. What should be done
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
1
,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 actions would eventually become necessary, but it
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
2
,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.
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, 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
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
4
Corresponding Answers with Surety of
100% Pass Mark
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 with the examiners' finding. What should be done
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
1
,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 actions would eventually become necessary, but it
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
2
,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.
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, 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
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
4
