CRCM

CRCM practice questions, page 16 of 19, with answer review and explanations.

Question 76

________________is defined as every aspect of an applicant's dealing with a creditor, beginning with information gathering and continuing through to the servicing and collection of the loan.

  1. Credit terms
  2. Credit rating
  3. Credit transaction
  4. Credit application

Question 77

In Processing and evaluating applications""12 CFR 202.6, protected income part is also under discussion. Which of the following considerations is NOT its part?

  1. Public assistance income may not consider whether an applicant's income is from a public assistance source
  2. Public assistance income may consider as it relates to another pertinent element of creditworthiness
  3. May consider length of time public assistance income will be received, whether the applicant will continue to qualify for the income, and whether the income can be garnished
  4. Can discount or refuse to consider the following: Part-time income Annuities Pensions Retirement benefits Alimony, child support, and separate maintenance payments to the extent they are likely to be consistently made

Question 78

Credit scoring systems:

  1. Evaluate an applicant's creditworthiness mechanically, based on key attributes of the applicant and aspects of the transaction, and determine, alone or in conjunction with an evaluation of additional information about the applicant, whether an applicant is deemed creditworthy
  2. Are evaluated by regulatory agencies to determine whether they are empirically derived and statistically sound and to examine: The bank's policies on the use of the credit scoring system Training of bank employees on the use of the system The number of high-side and low-side overrides of the system
  3. Both of these
  4. None of these

Question 79

Federal regulations define special-purpose credit-12 CFR 202.8 to include:

  1. Any credit assistance program authorized by federal or state law for the benefit of an economically disadvantaged class of persons
  2. Any credit assistance program offered by a not-for-profit organization for the benefit of its members or for the benefit of an economically disadvantaged class of person
  3. A special-purpose credit program must not discriminate on a prohibited basis; however, it can require its participants to share a particular characteristic (such as race or sex) provided the requirement was not established to evade the requirements of the ECOA. If the participants must share a common characteristic, the bank may collect information on that characteristic to determine eligibility
  4. If the program includes financial need as a criterion, the creditor can never request and consider information regarding the applicant

Question 80

These are the definitions of _____________: The refusal to grant credit in substantially the amount or on substantially the terms requested in an application (and the applicant uses or expressly accepts the credit offered) A termination of the account or an unfavorable change in the terms of an account, unless the change affects substantially all of the lender's accounts of that type. A refusal to increase the amount of credit available to an applicant who has made an application for an increase

  1. Adverse action-12 CFR 202.2(c)
  2. Special-purpose credit-12 CFR 202.8
  3. Refusals- 12 CFR 202.8
  4. security agreements-12 CFR 202.2(c)