CRCM Final Test(Questions well Answered)2022/2023

Completing the annual report of indebtedness to correspondent banks. Reg O: Instructions to executive officers regarding their reporting obligations under Regulation O should NOT include ____________. The account will be credited promptly. Reg E: A customer who has preauthorized transfers made on the 15th of each month to the utility company, sent written notification to the bank on the 5th of the current month that he wanted to discontinue the automatic transfers. The bank received the customer's notification on the 7th. On the 20th of the month, the customer telephoned to state that his account balance indicated that payment was NOT stopped. The bank should advise the customer that ____________. 00:51 01:36 Currency Transaction Reports CRTs AML not BSA When reviewing exemptions for continued eligibility under the Bank Secrecy Act, a review of which of the following is LEAST helpful? 1099A IRS Regs When conducting an audit of IRS tax compliance procedures, you should select a sample of which of the following forms? Handicap accessibility to property secured by a first mortgage loan made by the bank. Fair Housing Act: In monitoring a bank's compliance with the federal Fair Housing Act, it is LEAST relevant to review ____________. Encourage banks to help meet the credit needs of their local community. CRA One purpose of CRA Regulations is to ____________. update the employee manual not develop a new policy or revise internal monitoring schedules in this area. Compliance Management A recent regulatory change increased the amount of FDIC insurance coverage for individual depositors. The compliance manager should FIRST _____________. Loans to small farms CRA rules Under CRA rules, banks other than small banks must report which of the following types of loans? Have a loan-to-deposit ratio in each state that equals or exceeds 50% of the loan-to-deposit ratio of each host state. Riegle-Neal National Bank is headquartered in Colorado and has branches in Nebraska and Wyoming that it acquired two years ago. Each year the federal regulatory agencies publish the host state loan-to-deposit ratios for each state, which are used to determine if banks with interstate branches are in compliance with the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. To comply with the Act, the National Bank must: ID the consumer protection regulatory provisions on liability and error resolution. Compliance Management The bank is beginning e-banking and wants to deliver a full range of consumer electronic services. The compliance manager is a member of the project team. Which of the following functions is MOST appropriate for the compliance manager during the INITIAL stages of this project? The fair market value of the prize is reportable on Form 1099 MISC IRS regs Which of the following statements describes a bank's reporting requirements when it awards a big-screen television, valued at $800, to a customer as a grand-opening prize? Perform a root cause analysis Compliance Management An internal audit reveals APR calculation issues. In responding, you should FIRST ____________. Require verification of the identity of each customer. AML? CIP During a review of your bank's customer identification procedures, you are likely to find regulatory deficiencies if the bank does NOT ____________. Obtain the TIN within a reasonable time after account opening. BSA If the bank does not obtain the TIN from the deposit account holder when the account is opened, the Bank Secrecy Act requires that the bank ____________. Determine the number of mortgage loans your banks services together with any affiliates as of the current date. REG Z: small loans and RESPA To determine whether your bank is a small servicer under Regulation Z's definition of small servicer and thereby exempt from RESPA requirements for early intervention mortgage servicing notices, you should: Initially and periodically Bank Operations Under the Bank Protection Act, how often must a security program provide for training of officers and employees? The APY Not fees on the account, the basis for the interest rate and a description of how any early withdrawal penalty will be calculated Reg DD When reviewing for compliance under Regulation DD, which of the following items must be included in an advertisement for a time deposit account where a fixed interest rate is advertised? Determination of whether TINs are properly requested for all new accounts opened. IRS regs Which of the following procedures BEST determines whether a bank is in compliance with IRS regulations regarding deposit accounts? Verification of key data field accuracy. CRA/HMDA A data integrity review for CRA and HMDA data submissions should include which of the following? Acknowledge receipt of the complaint in writing within 5 BD RESPA The Loan Department received a written complaint from a mortgage loan customer alleging that the bank has made a number of errors in timely crediting loan payments to the borrower's mortgage loan account. To comply with the RESPA mortgage servicing requirements, the bank must FIRST: The buyer and seller agree to special or creative financing terms FIRREA Appraisal Standards Under FIRREA Appraisal Standards, the definition of ''market value'' is NOT based on the consummation of a sale and passing of title under conditions whereby: NMLOS - Society The loan originators for consumer credit transactions secured by a dwelling in your institution are subject to all of the following requirements EXCEPT: 78& Homeowner's Protection ACT A recent Homeowner's Protection Act (HPA) audit revealed that your bank releases a borrower from PMI coverage only when the borrower requests the release. After correcting your policies and procedures, your bank should NEXT drop PMI coverage for all eligible loans covered by HPA where the LTV has reached Participants in a money transmitting business Reg GG: Gambling Which of the following are exempt from the requirement under Regulation GG to implement policies and procedures to block illegal transactions? Convert the NOW account to a non-interest bearing account and discuss other options with the customer. Bank Ops A review of the bank's deposit accounts reveals that ABC Widget Manufacturing Company, Inc. has recently opened a NOW account. Which of the following actions is MOST appropriate for the bank to take? File a SAR form with respect to the structured transaction BSA A customer presented $13,000 in cash for deposit to her account. She withheld $4,000 from the transaction when the teller began to complete a CTR. In this situation, the bank must ___________ Purchase -money security interest in household goods Reg AA - confession of judgement clause, waiver of exemption clause, and assignment of wages are permitted Which of the following is a contract provision permitted under Regulation AA rules regarding unfair or deceptive acts or practices? FDCPA does not apply to debts collected by bank employees, however, the employees should be trained to refrain from the unfair and abusive provisions of the act. FDCPA The head of the bank's collections and recovery department called you to ask about a proposed process improvement that he is considering for the department. He wants to reduce the number of third party debt collectors the bank uses to collect delinquent loans and use internal bank employees to conduct collection efforts, including calling delinquent customers and sending communications requesting payments. He wants your thoughts on the Fair Debt Collection Practices Act and its implications on such a change. Your advice to the collections and recoveries manager includes: Rounded up to the nearest thousand Use whole dollars The dollar amount of the application reported on the HMDA LAR should be recorded as a number that is ____________. 2 months Garnishments When your bank receives a garnishment order for an account that potentially contains federal benefit payments, how long of a lookback period is the bank required to check the account for covered benefit payments? The bank is asked to provide additional information about ans IRS Form 1099. Cannot release info on legal issues In which of the following situations may customers be told that information about their accounts has been requested by a federal government agency? Father-in-law only Businesses are exempt A customer defaults on his automobile loan and the bank threatens to repossess the automobile. His uncle's corporation, his father's partnership, and his father-in-law agree to cosign the loan. The cosigner notice must be received by the ____________. Advising the committee on disclosure requirements, regulatory limitations, and liability provision affecting the package. A financial institution plans to introduce a new package of services that will include deposit accounts, investment services, credit products, and electronic banking. You are included on the project committee to develop and implement this package. Which of the following is the MOST appropriate role for you, as the compliance officer, on this committee? Review the bank's branch closing policy and procedures Your bank is considering closing a branch office. You should review which of the following FIRST? Political or geographic subdivisions For a bank located in an MSA, which of the following is MOST relevant when identifying the bank's CRA assessment area? Notify management of the problem with the brochure and the risks involved with its use - Compliance Management You have recently joined a financial institution and are asked to review the products and services for compliance. You discover that one of the lobby brochures for a deposit product does not include important required disclosures. Which of the following actions should you take FIRST? Establish specific procedures for federal government agencies seeking information about a customer's financial records. Financial Privacy Act The PRIMARY purpose of the Right to Financial Privacy Act is to ____________. A customer uses cash to purchase traveler's checks totaling $2000 and at the same time, uses cash to purchase a cashier's check for $3000 IRS In which of the following situations is a bank required by federal regulation to verify and record the identity of the customer and provide that, and other specific information, only upon request from the IRS? Receiving complimentary flood certifications for its real estate portfolio when contracting for future flood determinations services. RESPA prohibits which of the following bank practices? Determine whether granting exemptions is a manageable risk for the bank. Your examiner tells you that your bank is straining its resources by not exempting any of its commercial account holders from CTR filing. The examiner notes that many of these customers are publicly traded and could be exempted. Which of the following actions is in the bank's BEST interest? Compare the date that a written disclosure was mailed to the customer with the date of the telephone conversation. The bank's insurance representatives take applications in person and by telephone. Which of the following monitoring procedures is MOST effective for ensuring disclosure compliance when applications are taken by telephone? Date application received. When making its modified LAR available to the public, a financial institution must include which of the following? Review more items to determine more complete scope of the problem. An auditor asked for your guidance regarding an audit in process. Review of 20 adverse action notices revealed that 2 were sent late, and 2 did not show the name and address of the credit reporting agency when required by the Fair Credit Reporting Act. Each of the errors was made by a different employee. Given these findings, you should advise the auditor to ____________. The customer's address must be outside of the US for OFAC to apply to the customer's transaction. Which of the following statements is NOT correct regarding the blocked countries and specially designated nationals covered by OFAC? Description of current efforts made to help meet community credit needs Required: list of branches, map of the assessment area(s), and list of the types of services that the institution offers. Every bank's CRA public file must contain all of the following information EXCEPT a ____________ When in writing by a teller when referring a customer to the investment sales area. Required: Orally during sales presentations Orally and in writing at the time an investment account is opened. In advertisements and promotional brochures Under the Interagency Statement on Retail Sales of Nondeposit Investment Products, the required disclosures can be provided to the bank's customer in all of the following ways EXCEPT: Frequency of potential rate changes. NOT: right to withdraw funds at any time average rate paid on the account during the past 5 years nor and example of a hypothetical deposit, illustrating how the APY would have been affected by interest rate changes during the past 15 years. Which of the following disclosures must be provided in writing at the time a variable rate deposit account is opened? Timely notice to the appropriate federal regulatory agency. 90 days On February 1, the bank board of directors approved the closing of one of its branches effective April 1 due to its continued unprofitability. Customers of the bank will be notified of the planned closing. The bank is at risk of violating which of the following regulatory requirements? Identify all types of covered accounts the bank offers Compliance Management Your bank was criticized in an examination because it did not have an Identity Theft Red Flags Program in place in accordance with the Fair Credit Reporting Act (Regulation V). What is the FIRST step you should take to initiate such a program? May use the report to conduct an internal fair lending review Compliance Management You learn that your bank has created a report of all deposit and loan customers. Presumed gender and ethnicity for each customer has assigned based on customer first and/or last names. You should tell management that they______. permitted, provided the fee is bona fide and reasonable. TRID FNB charges consumers for the cost of pulling a credit bureau report for all consumer closed-end mortgage loans the fee is $24 is assessed at the time an application is received. This practice is Let the borrower know that he could request a LOMA from FEMA to remove the property from SFHA. A borrower, whose loan is subject to flood insurance because the collateral is located in a SFHA as determined by the bank's flood service provide, refused to obtain and pay for flood insurance. The borrower claims the property is not in a flood area. What should/could the bank do? Requires the signatures of all joint account holders to be effective for joint accounts. A compliance officer is monitoring the bank's opt-out forms and procedures for compliance with the requirements of the Privacy of Consumer Financial Information Reg. A violation will occur if the bank's opt-out form _______________. Records to be disclosed. Exclude: Customer's TIN, Date the account was opened, or authorization for a period of one year Under the Right to Financial Privacy Act, a customer's authorization to release information must include which of the following? The records are requested by the agency in connection with an investigation of the financial institution. Your bank receives a federal agency administrative order requiring the bank to produce records pertaining to a customer. The bank is entitled to reimbursement from the federal agency under Reg S, UNLESS The bank is permitted to contact the DR's office to determine and verify the medical purpose of the loan. ABC Bank is considering offering a special loan promotion in conjunction with the local cosmetic surgeon, Dr. Tucker, PC. The bank's loan application forms will be available in the DR's office and patients who want to finance cosmetic surgery procedures can arrange financing directly with the bank. Dr Tucker's office will refer patients to the bank and provide bank application forms upon request. The bank's application forms include an authorization that the applicant signs allowing the bank to obtain info from the DR's office as necessary to process the app for credit. Which of the following is true in connection with such applications? Agricultural land that includes gas or liquid storage tanks. Not exempt: individual condo units mobile homes affixed commercial buildings under construction where the interior is unfinished Which of the following types of collateral is EXEMPT from Flood insurance regs?