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Question 31

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For example on a 0-5 scale:

ABA CRCM image Question 31 15079 09162024184554000000

The risk trend shows the direction of risk and probable change to risk over the next 12 months. A trend toward increasing risk means that

Management may want to take additional action through more controls or increased reviews
Management may want to take additional action through more controls or increased reviews
Risk may prompt a decrease in controls and improved efficiencies
Risk may prompt a decrease in controls and improved efficiencies
Controls currently in place are appropriate to succeed in keeping risks within management's established risk-tolerance level
Controls currently in place are appropriate to succeed in keeping risks within management's established risk-tolerance level
Risk measurements exceed management's tolerance for risk
Risk measurements exceed management's tolerance for risk
Suggested answer: A
asked 16/09/2024
Dylan Ogle
54 questions

Question 32

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Compliance professionals have a duty to keep senior management and the board apprised of the state of compliance within the bank through which of the following:

Self-monitoring and audit results
Self-monitoring and audit results
Proactive compliance controls
Proactive compliance controls
Timely and accurate regulatory reporting
Timely and accurate regulatory reporting
All of the options mentioned above
All of the options mentioned above
Suggested answer: D
asked 16/09/2024
CHEUNG KA FAI
48 questions

Question 33

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After a compliance officer develops a base of knowledge of regulations, he or she must begin the art of applying regulations in a risk management environment. Which of the following is NOT out of a few things to be kept in mind when determining what to do FIRST?

Think practically about your role as an advisor. Involve the business units in the decision process rather than making decisions for them
Think practically about your role as an advisor. Involve the business units in the decision process rather than making decisions for them
Calculate the institution's consolidated risk profile
Calculate the institution's consolidated risk profile
Make sure you understand the level of risk the bank will tolerate, so decisions do not exceed this limit
Make sure you understand the level of risk the bank will tolerate, so decisions do not exceed this limit
Add value by analyzing regulatory requirements for the business units before you present proposed or final rules or solutions
Add value by analyzing regulatory requirements for the business units before you present proposed or final rules or solutions
Suggested answer: B
asked 16/09/2024
carlos baptista
37 questions

Question 34

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In the mid-1980s a movement began among the federal supervisory agencies to produce a uniform ARM regulation. In 1988, the Federal Reserve Board added the uniform ARM disclosure requirements to a regulation. Therefore, most of the original OCC ARM consumer protection requirements are now found in this new regulation. Adjustable rate mortgage loans made by national banks may be subject to the OCC's ARM regulation or the requirements of this new regulation, or both. This new regulation is:

Regulation Z
Regulation Z
Truth in Lending
Truth in Lending
CFR 34.21, 34.22 and 34.23
CFR 34.21, 34.22 and 34.23
FIRREA penalty
FIRREA penalty
Suggested answer: A, B
asked 16/09/2024
Ackim Sanuka
40 questions

Question 35

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Which one of the following is out of the FIRREA penalties included in the enforcement section of Adjusted Mortgage Regulation (12 CFR 34)?

Penalties up to $7,500 per day for violations of laws and regulations
Penalties up to $7,500 per day for violations of laws and regulations
Penalties up to $47,500 per day if violations or unsafe or unsound practices are engaged in recklessly or are part of a pattern of misconduct that causes more than a minimal loss to the bank or any pecuniary gain to the parties involved
Penalties up to $47,500 per day if violations or unsafe or unsound practices are engaged in recklessly or are part of a pattern of misconduct that causes more than a minimal loss to the bank or any pecuniary gain to the parties involved
Penalties up to $1,375,000 per day against persons who knowingly commit a violation and knowingly or recklessly cause a substantial loss to the bank or a substantial benefit to the party
Penalties up to $1,375,000 per day against persons who knowingly commit a violation and knowingly or recklessly cause a substantial loss to the bank or a substantial benefit to the party
Penalties up to $6,500 per day for violations of laws and regulations
Penalties up to $6,500 per day for violations of laws and regulations
Suggested answer: A, C
asked 16/09/2024
Arnold Bronson TCHOFFO
52 questions

Question 36

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In Requirements section of Adjusted Mortgage Regulation (12 CFR 34), for loans subject to both the OCC ARM regulation and to Regulation Z, 12 CFR 226.19(b)---that is, loans made to an individual, for personal purposes, secured by the borrower's principal dwelling, and having a term longer than one year--- the index to which the interest rate is tied must be:

Specified in loan documents
Specified in loan documents
Readily available to and verifiable by the browser
Readily available to and verifiable by the browser
Multiple values of a chosen measure or a moving average of the chosen measure calculated over a specified period
Multiple values of a chosen measure or a moving average of the chosen measure calculated over a specified period
A and B only
A and B only
Suggested answer: D
asked 16/09/2024
lawrence Ajibolade
53 questions

Question 37

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Subprime borrowers are those with weakened credit histories or reduced repayment capacity. Loans to these borrowers historically have had a higher delinquency rate. Many lenders have expanded their lending programs and added subprime products as a method of meeting their _______________by providing greater credit access to lower-income consumers.

Community Reinvestment Act (CRA) responsibilities
Community Reinvestment Act (CRA) responsibilities
Fraudulent marketing tactics
Fraudulent marketing tactics
FTC Act
FTC Act
Predatory Lending
Predatory Lending
Suggested answer: A
asked 16/09/2024
Luigi Trigilio
47 questions

Question 38

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The banking agencies issued two guidances to caution depository institutions about risks involved in funding non-depository lenders that engage in predatory lending. Predatory and abusive practices include:

High-pressure sales
High-pressure sales
Excessive fees and interest rate including fees for unnecessary products
Excessive fees and interest rate including fees for unnecessary products
Balloon payments that may never cause foreclosures
Balloon payments that may never cause foreclosures
Excessive refinancing with fees included in the new loan
Excessive refinancing with fees included in the new loan
Suggested answer: A, B
asked 16/09/2024
James Younger
43 questions

Question 39

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Under Interagency Guidance on Subprime Lending (1999) lending policy must:

Be appropriate to the size and complexity of the operation
Be appropriate to the size and complexity of the operation
Address the types of products offers and those not authorized
Address the types of products offers and those not authorized
Require credit file documentation
Require credit file documentation
All of these
All of these
Suggested answer: D
asked 16/09/2024
Ernest Altagracia Marte
47 questions

Question 40

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The purpose of guidelines for National Banks to Guard against Predatory and Abusive Lending Practices- AL-2003-2 includes all of the following EXCEPT:

Provide examples to national banks of practices that may be abusive
Provide examples to national banks of practices that may be abusive
Advise banks on how they should avoid abusive practices
Advise banks on how they should avoid abusive practices
Banks should consider appropriate discount rates, credit loss rates, and prepayment rates when valuing these assets
Banks should consider appropriate discount rates, credit loss rates, and prepayment rates when valuing these assets
Show how some abusive lending can involve unfair or deceptive practices and therefore violate the Federal Trade Commission Act
Show how some abusive lending can involve unfair or deceptive practices and therefore violate the Federal Trade Commission Act
Suggested answer: C
asked 16/09/2024
corey shields
32 questions
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_____________requires that a statement of purpose be obtained from borrowers whose loans are to be greater than $100,000 and that will be secured by margin stock. Loans made for the purpose of purchasing margin stock are subject to additional limitations
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?