CRCM ACTUAL Exam Questions and
CORRECT Answers
Kickback - CORRECT ANSWER - A thing of value including payments, advances, funds,
loans, services, or other consideration
Home Loan Toolkit - CORRECT ANSWER - Required only for RESPA first lien
purchase-money loan applications
Exemptions to provision of a HUD Settlement Statement at the time of closing - CORRECT
ANSWER - Borrower waives his or her right to receive a HUD - 1; Borrower or
borrower's agent does not attend settlement; No settlement meeting is held
Upon receipt of an application for a loss mitigation option, what must a creditor do? -
CORRECT ANSWER - Acknowledge the application in writing within 5 days of receipt
of the application.
The 9 Prohibited bases under ECOA - CORRECT ANSWER - Race, Sex, Marital Status,
Color, Religion, National Origin, Receipt of public assistance income, Exercise of rights under
ECOA
Exemptions from coverage under ECOA - CORRECT ANSWER - Public utilities credit,
Securities Credit. Incidental credit, Government Credit
What is the Effects Test - CORRECT ANSWER - Consumer proves disproportionate
adverse effect, Creditor proves manifest relationship between the practice and creditworthiness,
Consumer must show alternative policy or practice that achieves same result without
disproportionate adverse effect
"Application" under ECOA - CORRECT ANSWER - An oral or written request for credit
made in accordance with the creditor's procedures for the type of credit requested.
,When does an inquiry become an application under ECOA? - CORRECT ANSWER -
When the creditor evaluates information and decides to grant or decline credit.
Types of exempt persons from CTR reporting - CORRECT ANSWER - Banks (domestic
operations), U.S. Agencies, Listed entity on NYSE, AMEX, or NASDAQ, Commercial
Enterprises w/ domestic operations that meet certain criteria, Payroll customers
Enterprises w/ domestic operations can be exempted from CTR reporting if they meet which 4
criteria? - CORRECT ANSWER - Have maintained a transaction account for 2+ months;
Frequently (5 or more in a 12-month time period)engage in currency transactions over $10,000;
Organized under the laws of the U.S.; Are not engaged in a business that is on the ineligible list
A consumer report does not include: - CORRECT ANSWER - The sharing of experience
information between affiliates
A consumer report does not include: - CORRECT ANSWER - Communication of
information among persons related by common ownership or corporate control, if it is clearly
disclosed to the consumer that the information may be shared by affiliates and the consumer is
given the opportunity to opt out before the information is shared.
A consumer report does not include: - CORRECT ANSWER - An investigative report for
a prospective employer that has been previously authorized by the consumer.
If an employer uses a consumer report to make an adverse employment decision, the user must
do what? - CORRECT ANSWER - Provide to the consumer a copy of the report and a
description of the consumer's rights under the FCRA.
What are the Red Flag requirements of FCRA? - CORRECT ANSWER - Perform a risk
assessment
One of the Red Flag requirements of the FCRA - CORRECT ANSWER - Establishment of
an identity theft prevention program
,The Elements of an identity theft prevention program - CORRECT ANSWER - Identify
relevant red flags, detect red flags that have been incorporated into the f.i.'s program, respond
appropriately to any red flags to prevent and mitigate id theft, and ensure the program is updated
periodically to reflect changes in risks
When must a disclosure be made to a consumer if negative information has been reported about
them to a credit reporting agency? - CORRECT ANSWER - Before or not less than 30
days after furnishing the information.
If providing the notice of negative information at the time of loan closing, what can it NOT be
given with? - CORRECT ANSWER - The initial open-end Truth in Lending disclosures
What is the general rule on using medical information to determine a consumer's eligibility for
credit? - CORRECT ANSWER - A creditor may not obtain or use medical information
pertaining to a consumer in connection with any determination of the consumer's eligibility or
continued eligibility for credit.
In what circumstances may a creditor obtain and use medical information in connection with a
determination of a consumer's eligibility for credit? - CORRECT ANSWER - 1. The
information is of the type that is routinely used in making credit eligibility determinations (debts,
income, expenses, assets, collateral)
2. The creditor uses the information in a way that is no less favorable that it would use any other
comparable, nonmedical information
3. The creditor does not take into account the consumer's physical, mental or behavioral health
condition or history, type of treatment, or prognosis into account as a part of any such
determination.
When a consumer submits a dispute directly to a furnisher of credit information, the furnisher
must do what? - CORRECT ANSWER - 1. Conduct a reasonable investigation
2. Review all relevant information provided by the consumer
3. Complete the investigation and report the results to the consumer within 30 days from the date
the furnisher received the notice of dispute
4. Promptly notify every consumer reporting agency to which it reported the inaccurate
information and make any necessary corrections
, True or False: A furnisher of consumer information has no duty to investigate if the furnisher has
a reasonable belief that the dispute is prepared on behalf of the consumer or submitted on a form
supplied by a credit repair company - CORRECT ANSWER - True
What is the required content of a direct dispute notice? - CORRECT ANSWER -
Sufficient information to identify the account; The specific information the consumer is
disputing and the basis for the dispute; All supporting documentation required by the furnisher to
substantiate the basis of the dispute
When can a furnisher of consumer information consider a dispute frivolous or irrelevant? -
CORRECT ANSWER - If the consumer did not provide enough information in the notice
to investigate; The dispute is substantially the same as one submitted previously by the
consumer, unless it contains required information that was not previously provided; One of the
exemptions to investigate applies
When must a furnisher of consumer information provide a Notice of determination? -
CORRECT ANSWER - The furnisher must notify the consumer within 5 days of making a
determination that a dispute is frivolous or irrelevant
What must a bank's CRA assessment area include? - CORRECT ANSWER - One or more
MSA's or one or more contiguous political subdivisions (counties, cities, etc.) AND The
geographies in which the bank has its main office, branches and deposit-taking ATM's, as well as
surrounding areas where the bank has originated a substantial portion of its loans.
True or False: A bank can adjust its assessment area to include only the part of the political
subdivision that it can reasonably expect to serve. - CORRECT ANSWER - True
True or False: A bank may arbitrarily exclude low or moderate income geographies from its
assessment area - CORRECT ANSWER - False
True or False: A bank's assessment area may not extend substantially beyond an MSA boundary
or a state boundary unless the bank serves a geographic area that extends substantially beyond a
state boundary. - CORRECT ANSWER - True
CORRECT Answers
Kickback - CORRECT ANSWER - A thing of value including payments, advances, funds,
loans, services, or other consideration
Home Loan Toolkit - CORRECT ANSWER - Required only for RESPA first lien
purchase-money loan applications
Exemptions to provision of a HUD Settlement Statement at the time of closing - CORRECT
ANSWER - Borrower waives his or her right to receive a HUD - 1; Borrower or
borrower's agent does not attend settlement; No settlement meeting is held
Upon receipt of an application for a loss mitigation option, what must a creditor do? -
CORRECT ANSWER - Acknowledge the application in writing within 5 days of receipt
of the application.
The 9 Prohibited bases under ECOA - CORRECT ANSWER - Race, Sex, Marital Status,
Color, Religion, National Origin, Receipt of public assistance income, Exercise of rights under
ECOA
Exemptions from coverage under ECOA - CORRECT ANSWER - Public utilities credit,
Securities Credit. Incidental credit, Government Credit
What is the Effects Test - CORRECT ANSWER - Consumer proves disproportionate
adverse effect, Creditor proves manifest relationship between the practice and creditworthiness,
Consumer must show alternative policy or practice that achieves same result without
disproportionate adverse effect
"Application" under ECOA - CORRECT ANSWER - An oral or written request for credit
made in accordance with the creditor's procedures for the type of credit requested.
,When does an inquiry become an application under ECOA? - CORRECT ANSWER -
When the creditor evaluates information and decides to grant or decline credit.
Types of exempt persons from CTR reporting - CORRECT ANSWER - Banks (domestic
operations), U.S. Agencies, Listed entity on NYSE, AMEX, or NASDAQ, Commercial
Enterprises w/ domestic operations that meet certain criteria, Payroll customers
Enterprises w/ domestic operations can be exempted from CTR reporting if they meet which 4
criteria? - CORRECT ANSWER - Have maintained a transaction account for 2+ months;
Frequently (5 or more in a 12-month time period)engage in currency transactions over $10,000;
Organized under the laws of the U.S.; Are not engaged in a business that is on the ineligible list
A consumer report does not include: - CORRECT ANSWER - The sharing of experience
information between affiliates
A consumer report does not include: - CORRECT ANSWER - Communication of
information among persons related by common ownership or corporate control, if it is clearly
disclosed to the consumer that the information may be shared by affiliates and the consumer is
given the opportunity to opt out before the information is shared.
A consumer report does not include: - CORRECT ANSWER - An investigative report for
a prospective employer that has been previously authorized by the consumer.
If an employer uses a consumer report to make an adverse employment decision, the user must
do what? - CORRECT ANSWER - Provide to the consumer a copy of the report and a
description of the consumer's rights under the FCRA.
What are the Red Flag requirements of FCRA? - CORRECT ANSWER - Perform a risk
assessment
One of the Red Flag requirements of the FCRA - CORRECT ANSWER - Establishment of
an identity theft prevention program
,The Elements of an identity theft prevention program - CORRECT ANSWER - Identify
relevant red flags, detect red flags that have been incorporated into the f.i.'s program, respond
appropriately to any red flags to prevent and mitigate id theft, and ensure the program is updated
periodically to reflect changes in risks
When must a disclosure be made to a consumer if negative information has been reported about
them to a credit reporting agency? - CORRECT ANSWER - Before or not less than 30
days after furnishing the information.
If providing the notice of negative information at the time of loan closing, what can it NOT be
given with? - CORRECT ANSWER - The initial open-end Truth in Lending disclosures
What is the general rule on using medical information to determine a consumer's eligibility for
credit? - CORRECT ANSWER - A creditor may not obtain or use medical information
pertaining to a consumer in connection with any determination of the consumer's eligibility or
continued eligibility for credit.
In what circumstances may a creditor obtain and use medical information in connection with a
determination of a consumer's eligibility for credit? - CORRECT ANSWER - 1. The
information is of the type that is routinely used in making credit eligibility determinations (debts,
income, expenses, assets, collateral)
2. The creditor uses the information in a way that is no less favorable that it would use any other
comparable, nonmedical information
3. The creditor does not take into account the consumer's physical, mental or behavioral health
condition or history, type of treatment, or prognosis into account as a part of any such
determination.
When a consumer submits a dispute directly to a furnisher of credit information, the furnisher
must do what? - CORRECT ANSWER - 1. Conduct a reasonable investigation
2. Review all relevant information provided by the consumer
3. Complete the investigation and report the results to the consumer within 30 days from the date
the furnisher received the notice of dispute
4. Promptly notify every consumer reporting agency to which it reported the inaccurate
information and make any necessary corrections
, True or False: A furnisher of consumer information has no duty to investigate if the furnisher has
a reasonable belief that the dispute is prepared on behalf of the consumer or submitted on a form
supplied by a credit repair company - CORRECT ANSWER - True
What is the required content of a direct dispute notice? - CORRECT ANSWER -
Sufficient information to identify the account; The specific information the consumer is
disputing and the basis for the dispute; All supporting documentation required by the furnisher to
substantiate the basis of the dispute
When can a furnisher of consumer information consider a dispute frivolous or irrelevant? -
CORRECT ANSWER - If the consumer did not provide enough information in the notice
to investigate; The dispute is substantially the same as one submitted previously by the
consumer, unless it contains required information that was not previously provided; One of the
exemptions to investigate applies
When must a furnisher of consumer information provide a Notice of determination? -
CORRECT ANSWER - The furnisher must notify the consumer within 5 days of making a
determination that a dispute is frivolous or irrelevant
What must a bank's CRA assessment area include? - CORRECT ANSWER - One or more
MSA's or one or more contiguous political subdivisions (counties, cities, etc.) AND The
geographies in which the bank has its main office, branches and deposit-taking ATM's, as well as
surrounding areas where the bank has originated a substantial portion of its loans.
True or False: A bank can adjust its assessment area to include only the part of the political
subdivision that it can reasonably expect to serve. - CORRECT ANSWER - True
True or False: A bank may arbitrarily exclude low or moderate income geographies from its
assessment area - CORRECT ANSWER - False
True or False: A bank's assessment area may not extend substantially beyond an MSA boundary
or a state boundary unless the bank serves a geographic area that extends substantially beyond a
state boundary. - CORRECT ANSWER - True
