On which of these loans does First National have to report the interest rate spread on its HMDA LAR?

A home improvement loan secured by a principal dwelling

A loan to remodel a 60-unit apartment complex

A loan to renovate a rental property

An unsecured loan to purchase an investment property

A home improvement loan secured by a principal dwelling

By what date must financial institutions submit their loan application registers to their federal supervisory agency?

March 1 of the year following the calendar year for which the data were compiled

March 31 of the year following the calendar year for which the data were compiled

March 1 of the year following the calendar year for which the data were compiled

February 1 of the year following the calendar year for which the data were compiled

April 1 of the year following the calendar year for which the data were compiled

Which of the following loans would First National report on its loan application register?

A refinancing of the balance of a home purchase loan made five years earlier, both loans will be secured by dwellings

A loan made to a couple, secured by their home, to pay for their children's education

A bridge loan made to a newly transferred executive of a local company

A loan made to construct a principal dwelling

When must a bank make its mortgage loan disclosure statement available?

At any time when requested by a member of the public

Only when requested by its federal supervisory agency

At any time when requested by a member of the public

For 30 days following receipt of a request from its supervisory agency

On an ongoing basis, by posting it in the lobby of each branch

What information must be on the loan application registers for home loans on property located within the bank's metropolitan area?

The county, census tract, and metropolitan area of the property

The address, census tract, and metropolitan area of the property

The county, address, and fair market value of the property

The name, address, and metropolitan area of the applicant

How must most banks submit loan application registers to their federal supervisory agencies?

In three copies with the required transmittal

In a separate package for each branch loan application

Which of the following is required to be reported on ABC Bank's HMDA LAR?

An application from Mr. and Mrs. Rawlings for a preapproval of a home purchase loan application that is denied by ABC

An application from Mr. Welch for a preapproval of a home purchase loan application that is approved by ABC in writing but not accepted by Mr. Welch

An application from Ms. Ensley for a preapproval of a temporary construction loan that is denied by ABC

An application from Mr. and Mrs. Rawlings for a preapproval of a home purchase loan application that is denied by ABC

An application from Ms. Connor for a home equity loan to be used to consolidate credit cards

John and Elise Fernandez apply to ABC Bank for a loan to purchase a manufactured home. ABC Bank is a community bank with approximately $100 million in assets, and the home would be located outside of the bank's metropolitan are a. Mr. and Mrs. Fernandez complete an in-person application for a mobile home that is denied by the bank due to insufficient income. Which piece of information on the Fernandez application is ABC Bank NOT required to report on its HMDA LAR?

The metropolitan area where the home will be located

The ethnicity of the applicants

The purpose of the loan application

The metropolitan area where the home will be located

Which of the following loans or applications is EXCLUDED from HMDA reporting?

Loans secured by real estate that are made for purposes other than home purchase, improvement, or refinancing

Residential loans purchased on the secondary market

Loans secured by real estate that are made for purposes other than home purchase, improvement, or refinancing

Loans on residential property in a flood zone when proof of flood insurance is not provided

Applications for refinancing when there is no increase in principal

For HMDA purposes, the term ''dwelling'' does NOT include which of the following?

Mobile homes not attached to real property

Which of the following representations on the HMDA loan application register is a violation of Regulation C?

The gender of the applicant is designated by the letters M or F

The MSA number, instead of the MSA name, is used for each loan and application

The ''reasons for denial'' column is blank

Race, national origin, and gender information are not included for purchased loans

The gender of the applicant is designated by the letters M or F

Under HMDA, what is the threshold for reporting the interest rate spread for first lien mortgage loans?

Over 7 percentage points and when the loan is subject to the Home Ownership and Equity Protection Act

Less than 8 percentage points but greater than 5 percentage points

In a review of a bank's home mortgage loan application register, which of the following must be included in Regulation C reporting?

Loans made and sold within the reporting period

Loans made or purchased in a fiduciary capacity

Interim construction loan applications

Loans made and sold within the reporting period

Which of the following banks CANNOT select Montana as its home state for deposit production purposes?

ACME National Bank with its headquarters in Minneapolis, MN, but with most of its branches and the majority of its loans in Montana

ABC National Bank with its headquarters in Missoula, Montana

XYZ State Bank, with a Montana state charter

ACME National Bank with its headquarters in Minneapolis, MN, but with most of its branches and the majority of its loans in Montana

Friendly Bank, a U.S. branch of a foreign bank with two U.S. locations, one in Montana and one in Wyoming

A banking agency is conducting a credit needs determination. Which of the following is NOT a criterion used in such a determination?

The bank's profitability ratios

Economic conditions, including loan demand in the bank's communities

Whether the bank was once part of a failed institution

The bank's profitability ratios

ACME Bank would like its tellers to help sell insurance products to new and existing customers. The tellers would refer customers to personal bankers who have insurance licenses from the state. The bank would like to reward tellers by giving them a small percentage of the commission for each policy sold where the sale resulted from a referral. Which of the following statements presents ACME's biggest concern in complying with the Consumer Protection in Sales of Insurance regulation?

Tellers should not be rewarded only when the referral results in a sale.

It is difficult for many people to get an insurance license.

It is hard for tellers to handle so many types of products.

It is hard to physically separate insured deposit products from insurance products.

Tellers should not be rewarded only when the referral results in a sale.

ACME Bank has a separate page on its Web site where it describes insurance products, such as life insurance and health and disability insurance. The page invites consumers to call the bank officer in charge of selling these products.The Web site's lending page also describes consumer loans and uses the following phrase: ''Have peace of mind---credit life and disability insurance are available on all consumer loans to qualified borrowers.'' Neither the insurance page nor the lending page mentions insured deposits. What does ACME need to do to make sure its Web site is in compliance?

Place the advertising disclosures on both the Web site's insurance page and its lending page.

Nothing. As long as the insurance products are segregated, the Web site is in compliance.

Place the advertising disclosures (not a deposit, not insured by the FDIC, and so on) on the insurance page.

Place the advertising disclosures on both the Web site's insurance page and its lending page.

Create a separate Web site for all insurance products.

It is the policy of First Safe Bank to offer credit life insurance and accident and disability insurance to all consumer loan customers. What procedures fulfill the disclosure requirements for the bank?

Give each customer the disclosures orally at the time of application and, if applicable, in writing at loan closing.

Place a sign on loan officers' desks that provides the disclosures and give each customer a written disclosure it loan closing.

Give each customer the disclosures orally at the time of application and, if applicable, in writing at loan closing.

Only a written disclosure at closing is necessary.

Only give disclosures to persons who actually purchase the insurance.

Which of the following is (are) NOT covered by the regulation?

A person who sells insurance to nonconsumers for other than personal, family, or household purposes

All banks regardless of insurance sales.

A lender who indicates to the consumer that he or she is selling insurance on behalf of the bank

A person to whom the bank refers consumers and who has a contract with the bank to receive commissions on sales of insurance

A person who sells insurance to nonconsumers for other than personal, family, or household purposes

A bank representative is selling insurance products in, or on behalf of, the bank. What may the representative NOT require the customer to do?

Purchase the insurance from an affiliate of the institution

Pre-pay a portion of the initial premium

Complete an application for the insurance on the premises

Obtain a medical examination for life insurance coverage

Purchase the insurance from an affiliate of the institution

A recent compliance review revealed that several branch officers are using obsolete loan application forms, which do not include disclosures related to credit insurance sales. Which of the following steps should be taken FIRST?

Determine whether the branches use a separate document for required credit insurance sales disclosure.

Determine which customers were affected and take corrective action.

Contact the bank's primary regulator to determine the best course of action.

Instruct the branch to destroy all obsolete forms and immediately begin using the current versions.

Determine whether the branches use a separate document for required credit insurance sales disclosure.

Which of the following entities is exempt from the requirements of the Government Securities Act?

A national bank that purchases and sells government securities only in its fiduciary capacity on behalf of clients in its trust department

A bank that operates a securities underwriting department to provide underwriting services to issuers of government securities

A national bank that purchases and sells government securities only in its fiduciary capacity on behalf of clients in its trust department

A bank that operates a financial advisory service that provides advice to clients on the purchase and sale of government securities

A bank that operates an investment department to provide investment advice and purchase and sell all types of securities (including government securities) for clients

If a bank is a government securities broker or dealer, what are its responsibilities when it obtains a Form G-FIN-4 or an MSD-4 from an employee?

Verify the accuracy of the information by inquiring of all employers of the employee for the previous three years

Verify the accuracy of all information on the form

Verify the accuracy of the information by inquiring of all employers of the employee for the previous three years

Verify the accuracy of the information by inquiring of all employers of the employee for the previous five years

In which of the following activities may a bank engage and NOT be considered a municipal securities dealer?

Buying securities for the bank's own account

Underwriting municipal securities

Buying securities for the bank's own account

Providing advice to customers regarding the purchase of municipal securities

Engaging in research and giving investment advice regarding municipal securities

First National Bank is a municipal securities dealer. Its municipal securities department is supervised by Mary Watkins, a municipal securities principal. The department has five other employees, including two municipal securities representatives. Martin Wells, a commercial loan customer of the bank, tells Ms. Watkins he wants to invest in municipal securities and asks for her help. Mr. Wells has never dealt with the municipal securities department of the bank and has never purchased municipal securities. He wants to purchase the securities today. What should Ms. Watkins do?

Help him make the purchase only if she can be assured the transaction meets the MSRB suitability requirements

Determine what he would like to buy and help him buy it

Help him make the purchase only if she can be assured the transaction meets the MSRB suitability requirements

Help him make the purchase but avoid making any recommendations or comments about the advisability of the transaction

Refer him to a municipal securities representative

Which of the following actions is NOT required of a municipal securities principal?

Work as an apprentice for one year in a municipal securities operation

Pass the Municipal Securities Principal Qualification Examination

Complete Form MSD-4 and submit it to the bank

Work as an apprentice for one year in a municipal securities operation

Work in a supervisory role in a municipal securities operation

A municipal securities principal must directly supervise municipal securities operations. This includes reviewing all but one of the following. Which task is NOT involved in directly supervising municipal securities operations?

Providing quotations to customers

Handling a municipal securities transaction

First National Bank (FNB) purchased a table for $500 at the Governor's reelection fundraising dinner last fall. FNB President Sally Holmes tells Mary Watkins, the municipal securities principal, that the bank is planning to participate in the upcoming state highway bonD. What does Ms. Watkins tell President Holmes?

The bank cannot participate within two years of a contribution to the issuer.

The bank cannot participate without prior approval of the MSRB.

The bank can participate because national banks are exempt from MSRB rules.

The bank can participate, provided it includes the contribution on its next disclosure.

The bank cannot participate within two years of a contribution to the issuer.

State National Bank offers credit life and disability insurance on all consumer loans. This credit-related insurance is sold by a third party, but the bank collects a commission on all sales. The bank also sells hazard insurance through its affiliated insurance agency. Which of the following actions is legal for State National?

Require all borrowers with real property loans to provide insurance to protect the collateral

Require all consumers to purchase credit life insurance through the bank

Require only certain consumers to purchase credit life insurance through the bank

Require all borrowers with real property loans to provide insurance to protect the collateral

Require borrowers on real estate loans over $50,000 to purchase hazard insurance through the bank

Of the following actions, which one is NOT recommended by the OCC's advisory letter as a necessary tool of management oversight of insurance and annuity sales?

Establishing a separate insurance agency

Requiring a member of management to actively oversee this function

Of the following practices, which one is NOT accepted in insurance and annuity sales?

Reviewing insurance company ratings

Monitoring customer complaints against insurance companies

Verifying that personnel are properly licensed

Which of the following is NOT a requirement of the Interagency Statement on Retail Sales of Nondeposit Investments?

That all bank employees receive special training on the nondeposit investment products sold by the bank

That employees selling nondeposit investments receive special training on the products they sell

That all bank employees receive special training on the nondeposit investment products sold by the bank

That employees selling nondeposit investments ensure that the product is suitable to the customer purchasing it

That the history of employees selling nondeposit investments be checked before their employment

Which of the following bank policies does NOT comply with the Interagency Policy Statement on the Retail Sales of Nondeposit Investments?

Tellers and new accounts personnel will receive a $25 fee for all customers referred to the nondeposit investment department on the customer's purchase of an investment product.

Supervisors and sales personnel will receive compensation based on the volume of sales each department achieves as well as the effectiveness of the department's ability to find suitable investments for customers.

All bank employees engaged in the sale of nondeposit investments will provide the bank's required disclosures to all customers before the purchase of a nondeposit investment product.

No teller will discuss nondeposit investment products with a bank customer.

Tellers and new accounts personnel will receive a $25 fee for all customers referred to the nondeposit investment department on the customer's purchase of an investment product.

State National Bank has a Web site on which it advertises all of its products. One page of the Web site is devoted to the products of its affiliate, State National Investment Products, InC. The affiliate sells uninsured mutual funds and various other investments not insured by the FDIC. What are State National's responsibilities for this advertising?

The bank must make sure that the noninsured disclosures are on this page and that the FDIC logo does not appear.

None. The affiliate is responsible.

None. Because it is a Web site, the advertising rules do not apply.

The bank must make sure the FDIC logo is properly placed.

The bank must make sure that the noninsured disclosures are on this page and that the FDIC logo does not appear.

Under the Interagency Statement on Retail Sales of Nondeposit Investment Products what disclosure must the bank's investment sales representative make to the customer?

That the investment product is not guaranteed by the bank

The sales commission resulting from the investment purchase

That the investment product is not guaranteed by the bank

The arbitration procedure for resolving disputes over investment advice

ABA CRCM Practice Test 10 - Free Online Exam Prep & Questions

The following statements make assertions about the collection and reporting of data on race, ethnicity, sex, and income. Which statement is false?

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