Question No. 1

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

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

BThe lender is a qualified FHA or VA lender.

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

DThe lender offers unsecured home improvement loans.

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Correct Answer: A

Question No. 2

Which of the following is a high-net-worth customer?

AAn individual with $5 million in assets, including her home

BA corporation with $15 million in revenues

CA couple with a net worth of $10 million

DAn individual who is not acting with his spouse, with $1 million in assets and another $3 million in community property

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Correct Answer: C

Question No. 3

By which date must an interest reporting statement be sent to the borrower's last known address?

AJanuary 15 of the year following the year the interest is paid

BJanuary 31 of the year following the year the interest is paid

CFebruary 28 of the year following the year the interest is paid

DMarch 1 of the year following the year the interest is paid

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Correct Answer: B

Question No. 4

When helping a loan officer determine whether the bank must give a written adverseaction notice to a business loan applicant, what should the compliance officer consider?

ACurrent net income

BGross revenue for the preceding year

CLength of time the applicant has been in business

DType of business entity (that is, corporation, partnership, or sole proprietorship)

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Correct Answer: B

Question No. 5

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?

ABecause 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.

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

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

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

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Correct Answer: B

Free American Bankers Association CRCM Exam Actual Questions

The questions for CRCM were last updated On Dec 20, 2024