CRCM 2025/2026 Exam Questions and Verified Answers | Already Graded A+

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CRCM 2025/2026 Exam Questions and
Verified Answers | Already Graded A+



What are banks exempt from CRA? - 🧠ANSWER ✔✔Special purpose or limited

scope banks: Trust banks, correspondent, clearing agencies, banks that only

support 1 product (i.e. credit cards)


Lending Test for Small Banks - 🧠ANSWER ✔✔· Loan to deposit ration


· Distributions of loans focused on borrower's income

· Distribution of loans based on assessment area

· Complaints


Community Development Test for intermediate small Bank - 🧠ANSWER ✔✔·

Community Development loans

· Affordable housing

· Community Service targeted to LMI


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· Economic development targeted of businesses and farms

· Revitalizing the community after disaster occurs


Community Development Loan - 🧠ANSWER ✔✔Benefits the assessment area or

regional area including AA.




· Borrowers that rehabilitate or construct affordable housing (construction and

permanent financing)

· Non-profit serving LMI housing dev needs

· Borrowers who construct or rehabilitate community facilities in LMI

· Financial intermediaries, community loan funds, credit unions to lend or promote

community development.

· Local, state, tribal comm. Dev. Activities

· Environmental cleanup

· Business loans greater than 1mil SBA 504 loan




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COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED

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*Not a Home mortgage, small business, small farm, consumer loan, unless the loan

is for multi family dwelling and benefits the area. (except when it comes to

wholesale and LP)


Qualified Investment - 🧠ANSWER ✔✔Lawful investment, deposit, membership

share, or grant that has as its primary purpose community development.


Lending Test for Large Bank - 🧠ANSWER ✔✔1. Lending activity: Number of

loans for home mortgages, small business, small farm, and consumer loans

2. Geographic distribution

· Proportion of lending in assessment area

· Dispersion of lending in assessment area

· Number of loans in LMU geographies

3. Borrower characteristics and dispersion of loans based on borrower

4. Community Development Lending: # of CM loans complexity and

innovativeness

5. Innovative or flexible lending practices



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COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED

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6. Affiliate and 3rd party lending


Investment Test - 🧠ANSWER ✔✔1. $ amt of investments


2. Innovativeness or complexity

3. Responsiveness to credit needs

4. Degree to which investments are not routinely provided to private investors


Limited Purpose Bank - 🧠ANSWER ✔✔A bank that offers only a narrow product

line such as credit card or motor vehicle loans to a regional or broader market.

Should be testing only under community development test.


Wholesale Bank - 🧠ANSWER ✔✔A bank that is not in the business of extending

home mortgages, small business or farm loans, or consumer loans.


Service Test - 🧠ANSWER ✔✔Analysis of availability and effectiveness of a banks

systems for delivering retail banking services and the extent and innovative of

community development services.




1. Distribution of branches


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COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED