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ABA CRCM Practice Test - Questions Answers, Page 31

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List of questions

Question 301

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Bank B is a correspondent of Bank A . Which of the following must be included in Bank A's calculation of credit exposure to Bank B?

Question 302

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Which of the following is NOT a requirement of Regulation F?

Question 303

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Which of the following loans is clearly NOT subject to the IRS mortgage interest reporting requirement?

Question 304

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Which of the following actions subjects a lender to mortgage interest reporting requirements?

Question 305

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If the lender is subject to the mortgage interest reporting requirement, which of the following actions is NOT required?

Question 306

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Information reports must include which of the following details?

Question 307

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Mr. Roberts has three loans at First National Bank: Loan A made to purchase a car, secured by the car; Loan B made to purchase stock, secured by a lake lot; and Loan C made to pay taxes, secured by

Question 308

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Mrs. Franklin has two mortgage loans at First National Bank on which she makes monthly payments. On Loan A she made 13 payments last year, mailing the last payment on December 28. It was received th

Question 309

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First National Bank sold several of its mortgage loans to individual investors and now services the loans for the individuals. First National Bank collects more than $600 on most of these mortgages

Question 310

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First National Bank does not have the TINs of several borrowers with mortgage loans. What should the bank do to fulfill the mortgage interest reporting regulations?

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 301

Bank B is a correspondent of Bank A . Which of the following must be included in Bank A's calculation of credit exposure to Bank B?

A loan to Mr. Pierce from Bank A secured by Bank B common stock

Bank B's purchase of U.S. government T-Bills on behalf of Bank A under an overnight repurchase arrangement

Bank A's deposit account of $1 million in Bank B

A letter of credit issued by Bank B and pledged against the ACME Company's debt at Bank A

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Question 302

Which of the following is NOT a requirement of Regulation F?

Writing and maintaining policies and procedures for managing exposure to correspondent banks

Monitoring the exposure to correspondent banks on a regular basis

Establishing internal limits on exposure to correspondents

Providing quarterly reports to the board of directors of compliance audit results

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Question 303

Which of the following loans is clearly NOT subject to the IRS mortgage interest reporting requirement?

A loan made to purchase securities, secured by rural acreage

A loan made to finance a college education, secured by a piece of commercial real estate

A loan made to purchase a lot on a lake, secured by a certificate of deposit

A loan made to purchase a residence, secured by the dwelling

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Question 304

Which of the following actions subjects a lender to mortgage interest reporting requirements?

The lender holds mortgage loans in the course of its trade or business.

The lender is a qualified FHA or VA lender.

The lender receives at least $500 in interest on a mortgage loan during a calendar year.

The lender offers unsecured home improvement loans.

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Question 305

If the lender is subject to the mortgage interest reporting requirement, which of the following actions is NOT required?

The lender must file an information return with the IRS.

The lender must report the amount of interest and points on the information return.

The lender must report the loan balance as of December 31 of the year preceding the year the report is filed.

The lender must send a statement to the borrower.

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Question 306

Information reports must include which of the following details?

Name, address, and TIN of the borrower

Purpose of the loan

Address of the property securing the mortgage

Fair market value of the property at the time of the loan

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Mr. Roberts has three loans at First National Bank: Loan A made to purchase a car, secured by the car; Loan B made to purchase stock, secured by a lake lot; and Loan C made to pay taxes, secured by a rental house he owns. Last year he paid $2,500 in interest on Loan A; $550 in interest on Loan B; and $1,000 in interest on Loan C. How much interest will First National Bank report to the IRS?

$4,050

$1,000

$1,550

$2,500

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Question 308

Mrs. Franklin has two mortgage loans at First National Bank on which she makes monthly payments. On Loan A she made 13 payments last year, mailing the last payment on December 28. It was received the afternoon of January 2 and credited on January 3. The amount of interest paid on Loan A in the first 12 payments was $1,000. There was $155 of interest on the 13th payment. On Loan B, she made 12 payments; each contained interest accrued to the fourth day of the month. The last payment was mailed on December 19 and was received and credited on December 23. The last payment contained interest accrued to January 4. The total interest paid on Loan B was $2,000, of which $100 accrued between January 1 and January 4 of the next year. How much interest must First National Bank report?

$1,155 for Loan A and $2,000 for Loan B

$1,155 for Loan A and $2,100 for Loan B

$1,000 for Loan A and $2,000 for Loan B

$1,000 for Loan A and $2,100 for Loan B

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Question 309

First National Bank sold several of its mortgage loans to individual investors and now services the loans for the individuals. First National Bank collects more than $600 on most of these mortgages and deposits the money into the account of the investors. At the end of each year, First National Bank sends the investors a summary of transactions on the mortgages and a detailed breakdown of the principal and interest payments made. Who is responsible for filing the mortgage interest information returns?

The investors, because they own the loans and the money is collected for them

The investors, because they have the necessary information from the servicer

First National Bank, because it was the first owner of the loans

First National Bank, because it collects the interest and has the information necessary to file the information return

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Question 310

First National Bank does not have the TINs of several borrowers with mortgage loans. What should the bank do to fulfill the mortgage interest reporting regulations?

Mail a one-time request for TINs by certified mail to each borrower who has failed to provide one

Post a notice in its mortgage lending lobby that TINs are required for mortgage loans

Mail a separate request for TINs annually to borrowers who have failed to provide one

Include a request for TINs in the annual mailing of the payment coupon book

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Total 463 questions

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