American Bankers Association CRCM Quiz 2 Topic 4 Questions 6-10

Question: 1

Guidelines for National Banks to Guard against Predatory and Abusive Lending Practices---AL-2003-2 says that refusing to purchase the following types of loans can reduce the possibility of purchasing abusive mortgage loans EXCEPT:

ALoans in which the lender has not adequately determined the borrower's ability to repay the debt

BLoans subject to the Home Ownership and Equity Protection Act (HOEPA)

CLoans with points and fees in excess of 5 percent of the loan amount, except in cases where the higher amount was to prevent the loan from being unprofitable

DLoans in which a prepaid multiple-premium credit insurance policy was included in the amount financed

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Question: 2

Below mentioned list shows the significant risks of _______________.

Borrowers with cash-flow difficulties

Borrowers with no lower-cost credit alternatives

Minimal analysis of borrower's ability to repay the loan

Minimal review of borrower's credit history

Credit is usually unsecured

APayday lending

BLoan flipping

CEquity stripping

DNone of these

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Question: 3

Which of the following representations on the HMDA loan application register is a violation of Regulation C?

AThe MSA number, instead of the MSA name, is used for each loan and application

BThe ''reasons for denial'' column is blank

CRace, national origin, and gender information are not included for purchased loans

DThe gender of the applicant is designated by the letters M or F

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Question: 4

On which of the following loans must a bank maintain records under the Bank Secrecy Act?

AAll loans exceeding $5,000 and secured by real property

BAll loans exceeding $5,000, but not secured by real property

CAll loans exceeding $10,000 and secured by real property

DAll loans exceeding $10,000, but not secured by real property

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Question: 5

Under Regulation M, what is a ''consumer lease''?

AAny lease of $25,000

BA consumer lease for $25,000 or less with an option to own the property after the lease expires

CA consumer lease for $25,000 or less for the use of personal property

DAny consumer or agricultural lease for $25,000 or less

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American Bankers Association CRCM Quiz:2 Topic:4 Questions:6-10