CRCM

CRCM practice questions, page 14 of 19, with answer review and explanations.

Question 66

Short-form disclosures are required in advertisements and promotional materials unless the advertisements and promotional materials are of:

  1. A general nature describing or listing the products or services offered by the bank
  2. A specific nature describing or listing the products or services offered by the bank
  3. A general nature describing or special services offered by the bank
  4. A general nature describing competitive advantage of the bank

Question 67

This is a loan term or an arrangement that modifies a loan term under which a bank agrees to suspend all or part of a customer's loan obligation on the occurrence of a specified event. It May be a part of the loan itself or a separate agreement. Does not include a loan payment deferral arrangement where the borrower or the bank can unilaterally defer a payment. What is it?

  1. Debt suspension agreement (DSA)
  2. Anti-dying
  3. Debt cancellation contract (DCC)
  4. ALLL

Question 68

Under content of disclosures long term disclosures may include the following, as applicable EXCLUDING:

  1. Notification that the product is optional
  2. Explanation of debt-suspension agreement
  3. Lump-sum payment of fee with no refund
  4. Refund of fee paid in lump sum

Question 69

Banks must establish and maintain effective risk management and control processes over its DCCs and DSAs, including:

  1. Appropriate recognition and financial reporting of income, expenses, assets, and liabilities
  2. Appropriate treatment of losses associated with these products
  3. Assessment of the adequacy of its internal controls and risk mitigation activities
  4. Before entering into a contract, the bank must obtain the customer's written affirmative election to enter into the contract and written acknowledgement of the receipt of the disclosures

Question 70

The Equal Credit Opportunity Act (ECOA) was enacted in 1974 to prevent discrimination in credit transactions. In 1975 the act was amended. Which of the following prohibited base/s are now included in it?

  1. National origin
  2. Exercise of rights under the Consumer Credit Protection Act
  3. Receipt of public assistance income
  4. All of these