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ABA CRCM Practice Test - Questions Answers, Page 17

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Question 161

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Robin Martin made an individual application to the bank for a car loan. She has just returned to work on a regular basis because she was a full-time homemaker until recently, when her last child ent

Question 162

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Bob Richardson has had three loan applicants this morning: * Heather Smith, age 17, who needs a car loan for $9,500 for 3 years * John Bako, age 42, who would like a stock loan for $15,000 for 1 y

Question 163

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What may a creditor do if an applicant applies for individual unsecured credit?

Question 164

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Cassandra Phillips requested a loan to purchase a boat. She asked for $15,000 at 7.5 percent for seven years. The bank considered her request but decided, considering her income and credit history,

Question 165

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What may a creditor do in response to an application for credit from a business with gross revenues of $1 million or less?

Question 166

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What may a creditor do when furnishing credit information?

Question 167

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ABC Bank has an interactive Internet Web site at which it takes consumer credit applications. At the time an applicant completes an application on the Web site and submits it, the applicant also is

Question 168

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ACME Bank is a state nonmember bank with all of its offices in one state.However, it also has an Internet Web site where it advertises consumer credit and accepts applications from a five-state regi

Question 169

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Hector Martinez is a loan officer in a non-community property state. He receives a verbal request for a small business working capital loan from Leon Rogers for his technology consulting business. T

Question 170

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Regulation B defines ''elderly'' as having attained an age of how many years?

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:

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?

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:

The following mentioned points are actually _______________. * Reserve Banks may rely on numbers given in a payment order to identify an intermediary or beneficiary bank * Reserve Banks, when acting as beneficiary's bank, may rely on the number in the payment order that identifies the beneficiary

What insurance disclosures are required in the lease disclosure statement?

Question 161

Robin Martin made an individual application to the bank for a car loan. She has just returned to work on a regular basis because she was a full-time homemaker until recently, when her last child entered school. The loan officer would like to ask her about her husbanD. Under what circumstances can the officer ask Robin about her husband?

The creditor believes the spouse's signature will make the applicant more creditworthy.

The applicant is married.

The applicant resides in a community property state.

The applicant's credit reports indicate that the spouse is a better credit risk.

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Question 162

Bob Richardson has had three loan applicants this morning:

* Heather Smith, age 17, who needs a car loan for $9,500 for 3 years

* John Bako, age 42, who would like a stock loan for $15,000 for 1 year

* Maynard Williams, age 70, recently retired, who needs a $50,000 home improvement loan for 12 years Bob's bank uses a judgmental credit evaluation system. For which of these applications is Bob able to consider the age of the applicant as a factor in the decision making process?

All of them

None of them

Only Mr. Williams

Mr. Williams and Ms. Smith

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Question 163

What may a creditor do if an applicant applies for individual unsecured credit?

A creditor may never require the signature of another person.

A creditor may ask for the signature of the applicant's spouse if the applicant is not creditworthy.

A creditor may require another signature if the applicant relies on jointly owned property to establish creditworthiness.

A creditor may ask the applicant to withdraw the application if it does not meet the creditor's credit standards.

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Question 164

Cassandra Phillips requested a loan to purchase a boat. She asked for $15,000 at 7.5 percent for seven years. The bank considered her request but decided, considering her income and credit history, the best offer of credit the bank could make was $10,000 at 8.25 percent for five years. Rhonda Mays, the loan officer, wrote a letter, setting forth the terms the bank could offer. The letter was mailed on July 1. Ms. Phillips received the letter and began to look elsewhere for a loan on the terms and conditions she wanted. Does the bank have any additional responsibility to Ms. Phillips?

No. Because the bank made the offer of a loan, there is no further responsibility.

No. Because the customer decided to look elsewhere, there is no further responsibility.

Yes. The bank must follow up with a phone call to determine if Ms. Phillips is still interested.

Yes. The bank must send an adverse action notice because Ms. Phillips did not take the bank's counteroffer.

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Question 165

What may a creditor do in response to an application for credit from a business with gross revenues of $1 million or less?

Give a disclosure of the applicant's right to receive a statement of reasons at the time of the application instead of at the time of the adverse action

Mention adverse action notices only if requested by the applicant

Omit the ECOA statement on all notices NOTES

Provide only the ECOA statement to the applicant

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Question 166

What may a creditor do when furnishing credit information?

May designate accounts in any manner that is convenient and reasonable

Must designate accounts as specified by the parties

Must designate accounts to show participation by both spouses if both are liable

Must designate accounts to show all parties, including guarantors

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Question 167

ABC Bank has an interactive Internet Web site at which it takes consumer credit applications. At the time an applicant completes an application on the Web site and submits it, the applicant also is asked for his or her email address. If the application is denied, ABC sends an adverse action notice to the applicant's email address listed on the application. Using this procedure, what is ABC Bank's responsibility?

Post the notice on its Web site also

Send a paper notice by regular mail also

Use a credit scoring system

Obtain the applicant's affirmative consent before sending the notice

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Question 168

ACME Bank is a state nonmember bank with all of its offices in one state.However, it also has an Internet Web site where it advertises consumer credit and accepts applications from a five-state regional are A. Two of the states are community property states. The other three are not. What is the best explanation for what ACME bank's management should do to comply with the FDIC ECOA spousal signature guidance?

Because ACME has all of its offices within one state, it only has to be knowledgeable of the legal requirements of that state regarding spousal property rights and can apply those laws to all of its operations.

ACME must become familiar with the laws of each of the five states and ask for spouse signatures only when appropriate under the law.

ACME can choose any of the state laws where it operates to apply to its consumer lending operations.

ACME should make only business-purpose loans to avoid the spousal signature rules.

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Question 169

Hector Martinez is a loan officer in a non-community property state. He receives a verbal request for a small business working capital loan from Leon Rogers for his technology consulting business. The business is a sole proprietorship. Mr. Rogers gives Hector a written business plan for his business, a financial statement for the business for the past two years, and a personal financial statement that includes information on himself and his wife. Can Hector assume that the application is a joint application from Mr. Rogers and his wife?

Yes. Because the financial statement is signed by both Mr. and Mrs. Rogers and includes joint information, the application can be considered to be from both spouses.

Yes. Because the business is a sole proprietorship, the spouse's financial information is important.

No. The bank cannot assume the application is a joint one simply on the basis of submission of joint financial information.

No. Because the business is a sole proprietorship, the bank should assume the application is for individual credit.

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