CRCM Exam Questions With Correct
// // // //
Answers
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When //developing //a //training //plan //for //commercial //lenders, //which //of //the //following
//regulations //is //least //important //to //include? //- //verified //answer(s)-✔✔Truth //in //Lending //Act,
//CFPB //Regulation //Z
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? //- //verified //answer(s)-✔✔Prepare //a //summary //document //that //outlines //the
//effects //the //proposed //rule //would //have //on //the //bank's //operations
During //a //recent //compliance //examination, //regulators //cited //the //bank //for //violations //of
//various //marketing //regulations. //How //should //the //compliance //professional //FIRST //respond?
- verified //answer(s)-✔✔Review //the //marketing //materials //and //applicable //regulations //to
// //
//verify //the //finding.
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 //important //for //the //compliance //professional //on //the //task //force? //-
//verified //answer(s)-✔✔Validating //the //system //to //ensure //it //complies //with //regulatory
//restrictions
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? //- //verified //answer(s)-
✔✔Document //the //fact //that //the //level //of //risk //present //with //manual //systems //is //acceptable
//to //the //mortgage //department //business //unit
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 //FIRST? //- //verified //answer(s)-✔✔Review //the //bank's //flood
//policies //and //procedures //to //determine //where //the //compliance //failure //occurred
A //bank's //president //would //like //to //begin //offering //a //new //home //equity //line //of //credit
//product //within //two //weeks. //In //all //cases //the //borrower's //principal //dwelling //will //secure
//the //loan. //The //president //has //already //launched //a //planned //advertising //campaign //for //the
//bank's //major //service //markets. //What //should //the //compliance //professional //do //FIRST? //-
//verified //answer(s)-✔✔Perform //a //risk //assessment //to //determine //the //bank's //level //of //risk
//in //offering //this //new //product
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? //- //verified
//answer(s)-✔✔Form //a //task //force //of //the //business //unit //managers //whose //departments //will
//be //affected //by //the //law //to //collectively //form //an //action //plan
You //are //developing //bank //procedures //for //determining //when //to //escalate //issues //or
//problems //identified //as //a //result //of //repeat //SAR //filings //on //the //same //account. //These
//procedures //should //include //all //of //the //following //criteria //EXCEPT //____________. //- //verified
answer(s)-✔✔notifying //the //customer
//
Your //bank //is //considering //closing //a //branch //office. //You //should //review //which //of //the
following //FIRST? //- //verified //answer(s)-✔✔Bank's //branch //closing //policy //and //procedures
//
,When //reviewing //for //compliance //under //Regulation //DD, //which //of //the //following //items
//must //be //included //in //an //advertisement //for //a //time //deposit //account //where //a //fixed
interest //rate //is //advertised? //- //verified //answer(s)-✔✔The //APY
//
The //examiners //criticized //your //bank //at //the //last //examination //for //failing //to //conduct //a
//BSA/AML //risk //assessment //of //its //operations. //You //have //been //asked //to //complete //the
//assessment. //Which //of //the //following //categories //is //NOT //suggested //by //the //FFIEC
Examination //Manual //for //your //risk //assessment? //- //verified //answer(s)-✔✔Vendors
//
A //review //of //the //bank's //deposit //accounts //reveals //that //ABC //Widget //Manufacturing
//Company, //Inc. //has //recently //opened //a //NOW //account. //Which //of //the //following //actions //is
//MOST //appropriate //for //the //bank //to //take? //- //verified //answer(s)-✔✔Convert //the //NOW
//account //to //a //non-interest //bearing //account //and //discuss //other //options //with //the
//customer.
Which //of //the //following //disclosures //must //be //provided //in //writing //at //the //time //a //variable
//rate //deposit //account //is //opened? //- //verified //answer(s)-✔✔Frequency //of //potential //rate
//changes
The //bank //made //a //purpose //loan //to //a //customer //secured //by //margin //stock. //Now //the
//customer //wants //to //sell //that //stock //and //provide //a //substitution. //The //withdrawal //and
//substitution //is //permitted //under //which //of //the //following //circumstances? //- //verified
//answer(s)-✔✔the //withdrawal //and //substitution //will //not //cause //the //existing //loan //to
//exceed //the //maximum //50% //loan //to //collateral //value
When //conducting //an //audit //of //IRS //tax //compliance //procedures, //you //should //select //a
sample //of //which //of //the //following //forms? //- //verified //answer(s)-✔✔1099A
//
, The //loan //originators //for //consumer //credit //transactions //secured //by //a //dwelling //in //your
//institution //are //subject //to //all //of //the //following //requirements //EXCEPT: //- //verified
answer(s)-✔✔Membership //in //the //National //Mortgage //Loan //Originator //Society //(NMLOS)
//
RESPA //prohibits //which //of //the //following //bank //practices? //- //verified //answer(s)-✔✔Receiving
//complimentary //flood //certifications //for //its //real //estate //portfolio //when //contracting //for
//future //flood //determination //services
Under //FIRREA //Appraisal //Standards, //the //definition //of //''market //value'' //is //NOT //based //on
//the //consummation //of //a //sale //and //passing //of //title //under //conditions //whereby: //- //verified
answer(s)-✔✔the //buyer //and //seller //agree //to //special //or //creative //financing //terms
//
The //bank's //insurance //representatives //take //applications //in //person //and //by //telephone.
//Which //of //the //following //monitoring //procedures //is //MOST //effective //for //ensuring
//disclosure //compliance //when //applications //are //taken //by //telephone? //- //verified //answer(s)-
✔✔Compare //the //date //that //a //written //disclosure //was //mailed //to //the //customer //with //the
//date //of //the //telephone //conversation.
You //have //learned //that //the //Federal //Reserve //has //issued //a //proposed //regulation //to
//implement //a //recently //enacted //federal //law. //The //proposal //would //have //a //significant
//adverse //impact //on //one //of //the //financial //institution's //existing //activities. //You //have
//prepared //a //summary //of //the //proposal //for //management. //Which //of //the //following //actions
//is //MOST //appropriate //for //you //to //take? //- //verified //answer(s)-✔✔Distribute //the //summary
//and //advise //that //the //financial //institution //may //send //a //comment //letter.
Which //of //the //following //represents //the //required //method //for //providing //a //consumer //with
//the //insurance //consumer //protection //disclosures //in //connection //with //a //loan //transaction? //-
verified //answer(s)-✔✔At //the //time //of //loan //application
//
// // // //
Answers
//
When //developing //a //training //plan //for //commercial //lenders, //which //of //the //following
//regulations //is //least //important //to //include? //- //verified //answer(s)-✔✔Truth //in //Lending //Act,
//CFPB //Regulation //Z
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? //- //verified //answer(s)-✔✔Prepare //a //summary //document //that //outlines //the
//effects //the //proposed //rule //would //have //on //the //bank's //operations
During //a //recent //compliance //examination, //regulators //cited //the //bank //for //violations //of
//various //marketing //regulations. //How //should //the //compliance //professional //FIRST //respond?
- verified //answer(s)-✔✔Review //the //marketing //materials //and //applicable //regulations //to
// //
//verify //the //finding.
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 //important //for //the //compliance //professional //on //the //task //force? //-
//verified //answer(s)-✔✔Validating //the //system //to //ensure //it //complies //with //regulatory
//restrictions
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? //- //verified //answer(s)-
✔✔Document //the //fact //that //the //level //of //risk //present //with //manual //systems //is //acceptable
//to //the //mortgage //department //business //unit
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 //FIRST? //- //verified //answer(s)-✔✔Review //the //bank's //flood
//policies //and //procedures //to //determine //where //the //compliance //failure //occurred
A //bank's //president //would //like //to //begin //offering //a //new //home //equity //line //of //credit
//product //within //two //weeks. //In //all //cases //the //borrower's //principal //dwelling //will //secure
//the //loan. //The //president //has //already //launched //a //planned //advertising //campaign //for //the
//bank's //major //service //markets. //What //should //the //compliance //professional //do //FIRST? //-
//verified //answer(s)-✔✔Perform //a //risk //assessment //to //determine //the //bank's //level //of //risk
//in //offering //this //new //product
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? //- //verified
//answer(s)-✔✔Form //a //task //force //of //the //business //unit //managers //whose //departments //will
//be //affected //by //the //law //to //collectively //form //an //action //plan
You //are //developing //bank //procedures //for //determining //when //to //escalate //issues //or
//problems //identified //as //a //result //of //repeat //SAR //filings //on //the //same //account. //These
//procedures //should //include //all //of //the //following //criteria //EXCEPT //____________. //- //verified
answer(s)-✔✔notifying //the //customer
//
Your //bank //is //considering //closing //a //branch //office. //You //should //review //which //of //the
following //FIRST? //- //verified //answer(s)-✔✔Bank's //branch //closing //policy //and //procedures
//
,When //reviewing //for //compliance //under //Regulation //DD, //which //of //the //following //items
//must //be //included //in //an //advertisement //for //a //time //deposit //account //where //a //fixed
interest //rate //is //advertised? //- //verified //answer(s)-✔✔The //APY
//
The //examiners //criticized //your //bank //at //the //last //examination //for //failing //to //conduct //a
//BSA/AML //risk //assessment //of //its //operations. //You //have //been //asked //to //complete //the
//assessment. //Which //of //the //following //categories //is //NOT //suggested //by //the //FFIEC
Examination //Manual //for //your //risk //assessment? //- //verified //answer(s)-✔✔Vendors
//
A //review //of //the //bank's //deposit //accounts //reveals //that //ABC //Widget //Manufacturing
//Company, //Inc. //has //recently //opened //a //NOW //account. //Which //of //the //following //actions //is
//MOST //appropriate //for //the //bank //to //take? //- //verified //answer(s)-✔✔Convert //the //NOW
//account //to //a //non-interest //bearing //account //and //discuss //other //options //with //the
//customer.
Which //of //the //following //disclosures //must //be //provided //in //writing //at //the //time //a //variable
//rate //deposit //account //is //opened? //- //verified //answer(s)-✔✔Frequency //of //potential //rate
//changes
The //bank //made //a //purpose //loan //to //a //customer //secured //by //margin //stock. //Now //the
//customer //wants //to //sell //that //stock //and //provide //a //substitution. //The //withdrawal //and
//substitution //is //permitted //under //which //of //the //following //circumstances? //- //verified
//answer(s)-✔✔the //withdrawal //and //substitution //will //not //cause //the //existing //loan //to
//exceed //the //maximum //50% //loan //to //collateral //value
When //conducting //an //audit //of //IRS //tax //compliance //procedures, //you //should //select //a
sample //of //which //of //the //following //forms? //- //verified //answer(s)-✔✔1099A
//
, The //loan //originators //for //consumer //credit //transactions //secured //by //a //dwelling //in //your
//institution //are //subject //to //all //of //the //following //requirements //EXCEPT: //- //verified
answer(s)-✔✔Membership //in //the //National //Mortgage //Loan //Originator //Society //(NMLOS)
//
RESPA //prohibits //which //of //the //following //bank //practices? //- //verified //answer(s)-✔✔Receiving
//complimentary //flood //certifications //for //its //real //estate //portfolio //when //contracting //for
//future //flood //determination //services
Under //FIRREA //Appraisal //Standards, //the //definition //of //''market //value'' //is //NOT //based //on
//the //consummation //of //a //sale //and //passing //of //title //under //conditions //whereby: //- //verified
answer(s)-✔✔the //buyer //and //seller //agree //to //special //or //creative //financing //terms
//
The //bank's //insurance //representatives //take //applications //in //person //and //by //telephone.
//Which //of //the //following //monitoring //procedures //is //MOST //effective //for //ensuring
//disclosure //compliance //when //applications //are //taken //by //telephone? //- //verified //answer(s)-
✔✔Compare //the //date //that //a //written //disclosure //was //mailed //to //the //customer //with //the
//date //of //the //telephone //conversation.
You //have //learned //that //the //Federal //Reserve //has //issued //a //proposed //regulation //to
//implement //a //recently //enacted //federal //law. //The //proposal //would //have //a //significant
//adverse //impact //on //one //of //the //financial //institution's //existing //activities. //You //have
//prepared //a //summary //of //the //proposal //for //management. //Which //of //the //following //actions
//is //MOST //appropriate //for //you //to //take? //- //verified //answer(s)-✔✔Distribute //the //summary
//and //advise //that //the //financial //institution //may //send //a //comment //letter.
Which //of //the //following //represents //the //required //method //for //providing //a //consumer //with
//the //insurance //consumer //protection //disclosures //in //connection //with //a //loan //transaction? //-
verified //answer(s)-✔✔At //the //time //of //loan //application
//
