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ABA CRCM Practice Test - Questions Answers, Page 10

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Question 91

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FDIC guidance lists three requirements to ensure compliance with spousal signature rules include all of the following EXCEPT:

Question 92

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Content of notification to credit consumers must contain:

Question 93

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A bank may engage in voluntary self-testing and self-correction of its compliance with Regulation B . If the bank takes any appropriate corrective action, the reports, results, analysis, opinions, a

Question 94

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Creditors must retain for 25 months after the date that an offer of credit is made (12 months for business applicants with gross revenues of $1 million or less) the following items EXCEPT:

Question 95

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According to FDIC Guidance on Spousal Signature Provisions, if the creditor requires the spouse's signature on an instrument that imposes personal liability, the creditor's belief should be:

Question 96

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A consumer reporting agency may furnish a consumer report

Question 97

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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 p

Question 98

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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 alre

Question 99

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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 softwa

Question 100

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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

Related questions

Which of the following customers may be exempted under Phase II of the Bank Secrecy Act?

Martha Whitmire, the BSA Compliance Officer for First National Bank, is responsible for monitoring the bank's daily currency activity and wire transfers, for compliance with information retention and reporting requirements. Ms. Whitmire notices during her review on March 10 that, during the previous two weeks, a transaction occurred on the same account several times during the week. The activity appeared at one branch office as cash deposits in dollar amounts under the reporting thresholds. Ms. Whitmire discusses this activity with the branch manager and determines that this same deposit activity occurred several times during the previous six weeks. She then conducts a more extensive examination of the account's activity for several months and discovers that cash deposits were made at one branch office and purchases of bank cashiers checks were made by withdrawals from the same account at a different branch office. All withdrawals and purchases of cashier's checks were for the identical amount as the cash deposits.Which statement best describes Ms. Whitmire's responsibility?

Fastfood, InC. , a nationwide restaurant chain, opened an account at First National Bank last year. Fastfood is making daily deposits in amounts of $15,000 to $20,000. First National needs to determine if this company is an exempt person. What should the bank do first?

Banks must establish and maintain effective risk management and control processes over its DCCs and DSAs, including:

Bob's wife is HIV-positive due to a blood transfusion during an appendectomy 15 years ago. She is not yet sick, but takes medication to prevent the onset of AIDS. Bob occasionally needs to take time off from work to take her for testing at Johns Hopkins in Baltimore. Because of complaints about Bob's exposure to this disease, employees have asked HR to limit his contact with them and with customers. The bank has asked Bob not to eat in the lunchroom with the other employees and has placed Bob in a position where he has limited customer contact. Does this company have any potential ADA liability?

In April Lillian Redmond, the teller supervisor for First National Bank, discovers five counterfeit $20 bills in several teller drawers. In May and in June she discovers two additional counterfeit $20 bills. She has no knowledge of criminal activity on the part of any of the bank's employees or customers. She does not suspect any particular person in this transaction. Which of the following statements is true?

A financial institution may provide a customer with a short form initial notice at the same time as it delivers an opt-notice. The short form notice must:

What insurance disclosures are required in the lease disclosure statement?

The compliance program should address plans to verify adherence to applicable regulations through:

A compliance officer receives a call from a loan officer who asks for adv ice on what she should do with a stock certificate (1,437 shares of IBM) from a new loan customer who wants to pledge it in support of a loan that has been approved at your bank. What should the compliance officer tell her FIRST?

Question 91

FDIC guidance lists three requirements to ensure compliance with spousal signature rules include all of the following EXCEPT:

Review and revise policies Eliminate policies or procedures that are inconsistent with the requirements Expand loan policies and procedures to provide loan staff with specific guidance on state law(s) regarding requiring signatures Cover the laws of all states where the creditor institution does business Create checklists to address situations when spousal signatures can be required

Provide training to consumer and commercial loan staff

Implement monitoring and auditing programs to check for spousal signature violations

Must allow an applicant to designate a birth-given first name and a birth-given, surname, spouse's surname, or combination

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Question 92

Content of notification to credit consumers must contain:

Statement of the action taken

Name and address of creditor

Statement of the specific reasons for the adverse action or a disclosure of the applicant's right to receive the specific reasons within 30 days of a request. The request for specific reasons must be made within 60 days of the receipt of the adverse action notice.

Statement of the specific reasons for the adverse action or a disclosure of the applicant's right to receive the specific reasons within 15 days of a request. The request for specific reasons must be made within 30 days of the receipt of the adverse action notice.

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Question 93

A bank may engage in voluntary self-testing and self-correction of its compliance with Regulation B . If the bank takes any appropriate corrective action, the reports, results, analysis, opinions, and conclusions of the self-test will be protected by a privilege. The privilege will be lost if

Loan and application files or other records related to a credit transaction and information derived from such files and records, even if it has been reorganized and summarized for analysis

The information is voluntarily disclosed to the government

The public or is used in any manner as a defense to a discrimination charge

credit information is furnished in response to inquiries concerning an account reflecting the participation of consumer

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Question 94

Creditors must retain for 25 months after the date that an offer of credit is made (12 months for business applicants with gross revenues of $1 million or less) the following items EXCEPT:

The text of any prescreened solicitation

All other written information concerning the applicant

The list of criteria used to select recipients

Any record of complaints regarding the solicitation

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Question 95

According to FDIC Guidance on Spousal Signature Provisions, if the creditor requires the spouse's signature on an instrument that imposes personal liability, the creditor's belief should be:

Supported by a thorough review of pertinent statutes, decisional law, or an opinion of the state's attorney general

Supported by a thorough review of pertinent statutes

Supported by decisional law

Supported by an opinion of the state's attorney general

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Question 96

A consumer reporting agency may furnish a consumer report

If not authorized in writing by the consumer

In response to a court order having jurisdiction or a subpoena issued by a federal grand jury or review or collection of an account of the consumer

In connection with a credit or insurance transaction

For employment purposes Before procuring a consumer report, an employer Must disclose to the individual in writing that a consumer report may be obtained Must obtain written authorization from the individual before procuring the report

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Question 97

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?

Read the law and write a new real estate compliance policy

Form a task force of the business unit managers whose departments will be affected by the law to collectively form an action plan

Talk to the bank president about the need for more resources in compliance

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Question 98

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?

Hire an attorney to write the appropriate legal documents and disclosures

Write a memo to the president explaining why the compliance professional should have been in on the process at an earlier date

Begin training sessions for the lending and loan operations staff on the compliance issues involved

Perform a risk assessment to determine the bank's level of risk in offering this new product

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Question 99

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?

Elevate the issue to a higher authority to force the mortgage department unit to purchase the software

Nothing; the compliance professional's job is done with the completed research

Document the fact that the level of risk present with manual systems is acceptable to the mortgage department business unit

Write a memo to the president of the bank that explains the risk assessment for this area

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Question 100

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?

Establish a task force to study the proposed rule.

Contact the bank's platform software vendor to determine whether it will be ready for the change NOTES

Prepare a summary document that outlines the effects the proposed rule would have on the bank's operations

Train bank staff on the new rule

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Total 463 questions

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