Last Updated on December 28, 2021 by Admin 2

CRCM : Certified Regulatory Compliance Manager : Part 10

  1. Which of the following loans would First National report on its loan application register?

    • A refinancing of the balance of a home purchase loan made five years earlier, both loans will be secured by dwellings
    • A loan made to a couple, secured by their home, to pay for their children’s education
    • A bridge loan made to a newly transferred executive of a local company
    • A loan made to construct a principal dwelling
  2. An individual borrowed $1,000 to remodel her mobile home. She lives in the mobile home that is not anchored to the ground. The loan will be secured by the mobile home, but the borrower does not own the lot on which it is parked. For HMDA purposes, this loan is considered to be which of the following types of loans?

    • Consumer RV
    • Home equity
    • Home improvement
    • Second mortgage
  3. Under HMDA, what is the threshold for reporting the interest rate spread for first lien mortgage loans?

    • Over 3 percentage points
    • Over 5 percentage points
    • Over 7 percentage points and when the loan is subject to the Home Ownership and Equity Protection Act
    • Less than 8 percentage points but greater than 5 percentage points
  4. In a review of a bank’s home mortgage loan application register, which of the following must be included in Regulation C reporting?

    • Loans made or purchased in a fiduciary capacity
    • Servicing rights purchased
    • Interim construction loan applications
    • Loans made and sold within the reporting period
  5. Which of the following representations on the HMDA loan application register is a violation of Regulation C?

    • The MSA number, instead of the MSA name, is used for each loan and application
    • The “reasons for denial” column is blank
    • Race, national origin, and gender information are not included for purchased loans
    • The gender of the applicant is designated by the letters M or F
  6. John and Elise Fernandez apply to ABC Bank for a loan to purchase a manufactured home. ABC Bank is a community bank with approximately $100 million in assets, and the home would be located outside of the bank’s metropolitan area. Mr. and Mrs. Fernandez complete an in-person application for a mobile home that is denied by the bank due to insufficient income. Which piece of information on the Fernandez application is ABC Bank NOT required to report on its HMDA LAR?

    • The ethnicity of the applicants
    • The race of the applicants
    • The purpose of the loan application
    • The metropolitan area where the home will be located
  7. Which of the following loans or applications is EXCLUDED from HMDA reporting?

    • Residential loans purchased on the secondary market
    • Loans secured by real estate that are made for purposes other than home purchase, improvement, or refinancing
    • Loans on residential property in a flood zone when proof of flood insurance is not provided
    • Applications for refinancing when there is no increase in principal
  8. For HMDA purposes, the term “dwelling” does NOT include which of the following?

    • Timeshares
    • Single family dwellings
    • Individual condominiums
    • Mobile homes not attached to real property
  9. What is the definition of a “small” business under CRA rules?

    • Employs fewer than 50 people
    • Has assets of less than $5 million
    • Produces gross annual revenues of $1 million or less
    • Does not generally have access to regional or national credit markets
  10. Which of the following must a “large” bank maintain as part of its CRA program?

    • Listing of director, officer, and employee community involvement, and a listing of loans made to low- and moderate-income individuals
    • Description of its assessment area, written comments and responses, and the public portion of the regulator’s most recent CRA performance evaluation
    • Copy of the bank’s CRA Notice and the bank’s most recent five years of CRA disclosure statements
    • A comprehensive record of all CRA-related training completed by employees during the past two years 696 AMERICAN BANKERS ASSOCIATION
  11. A bank has been criticized by an examiner for less than satisfactory CRA performance. The bank must show improvement in its commitment to CRA. For the examiner, what would be LEAST effective in demonstrating the change?

    • Informing the examiner that the bank does not plan to acquire or merge with another bank, so CRA is not a priority
    • Giving the examiner an updated CRA public file
    • Showing the examiner a list of community groups with which the bank has met in the past 24 months to discuss credit needs
    • Showing the examiner results of the bank’s most recent geocoding analysis, indicating parity in the number of loans made in each census tract
  12. A bank received a signed letter criticizing its performance in meeting the credit needs of the community, but not adversely reflecting upon any individual bank employee’s reputation. What must the bank do with this letter?

    • Have it reviewed and discussed by the board of directors
    • File it with the regional office of the bank’s federal regulator
    • Retain it in the CRA public comment file
    • Answer it within 10 business days
  13. Which of the following institutions could be examined for CRA under the small intermediate bank performance standard?

    • Bank A, a $230 million bank
    • Bank B, a $700 million bank
    • Bank C, a $50 million bank
    • Bank D, a $2 billion bank
  14. In the small bank performance standard, which of the following is NOT a criterion?

    • The bank’s CRA strategic plan
    • The bank’s loan-to-deposit ratio
    • The geographic distribution of loans
    • The percentage of loans within the bank’s assessment area(s)
  15. Which of the following is true of a bank’s CRA strategic plan?

    • It must be limited to a one-year term.
    • It must have measurable goals.
    • Affiliates must have their own plans.
    • Even if the bank has multiple assessment areas, it must have one strategic plan.
  16. Several types of loan-related data appear in the following list. Which type of data is NOT required to be reported under HMDA?

    • Data on multifamily housing
    • Data on unsecured home improvement loans
    • Data on refinancings of home purchase loans
    • Data on loans to purchase residential lots
  17. Of the following types of data, which one is NOT required to be reported for each application for an originated loan subject to Regulation C?

    • Purpose of the loan
    • Race, ethnicity, and sex of the applicant
    • Type of action taken and the date
    • The interest rate on the loan
  18. The following statements make assertions about the collection and reporting of data on race, ethnicity, sex, and income. Which statement is false?

    • It must be requested on all HMDA-reportable applications received in person from natural persons.
    • It must be requested only for the loans where the application is taken in person.
    • It must be reported unless the loan was purchased.
    • It must be requested verbally on telephone applications.
  19. Which of the following institutions is NOT subject to the coverage of HMDA?

    • Bank A, with assets of $55 million and located in a large urban city, makes home improvement loans and some home purchase loans to existing customers, but no mortgage loans.

    • Bank B, with assets of $9 million and located in a rural area, has several branches, also in rural areas, including one that makes home improvement and home purchase loans.

    • Mortgage Company C, with assets of $75 million and a home office in a large East Coast city, makes exclusively home purchase loans.

    • All the institutions are subject to HMDA
    • Bank A
    • Bank B
    • Mortgage Company C
  20. Which of the following is the best method for a large bank to use in monitoring its CRA performance?

    • Review the effectiveness of marketing materials.
    • Evaluate approval and denial rates for minority loan applicants.
    • Perform a quarterly evaluation of the bank’s loans-to-deposits ratio.
    • Perform a geographic analysis of lending levels and dispersion of loans.