CRCM Certification Exam Questions with AI Explanations

QUESTION: 31

Which of the following comes under the heading of nontraditional mortgage product risks?

Reduced documentation adds risk to a mortgage loan.Institutions may rely on reduced documentation in the credit underwriting process.Income and credit verification may not be obtained.Use of reduced documentation should be subject to clear policies that require more documentation when the credit risk rises
Reduced documentation adds risk to a mortgage loan.Institutions may rely on reduced documentation in the credit underwriting process.Income and credit verification may not be obtained.Use of reduced documentation should be subject to clear policies that require more documentation when the credit risk rises
Perform due diligence before entering into third-party relationships, including a review of the third party's
General competence
Business practices and operations
Reputation
Financial capacity
Internal controls
Record of compliance with laws
Amounts credited as recovery on a loan must not exceed all principal, finance charges, and fees previously charged off. Amounts that exceed these must be credited as income

Answer(s): A,B

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QUESTION: 31

Which of the following comes under the heading of nontraditional mortgage product risks?

Reduced documentation adds risk to a mortgage loan.Institutions may rely on reduced documentation in the credit underwriting process.Income and credit verification may not be obtained.Use of reduced documentation should be subject to clear policies that require more documentation when the credit risk rises
Reduced documentation adds risk to a mortgage loan.Institutions may rely on reduced documentation in the credit underwriting process.Income and credit verification may not be obtained.Use of reduced documentation should be subject to clear policies that require more documentation when the credit risk rises
Perform due diligence before entering into third-party relationships, including a review of the third party's
General competence
Business practices and operations
Reputation
Financial capacity
Internal controls
Record of compliance with laws
Amounts credited as recovery on a loan must not exceed all principal, finance charges, and fees previously charged off. Amounts that exceed these must be credited as income

Answer(s): A,B

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QUESTION: 32

In Guidance on Nontraditional Mortgage Product Risks, if the institution has a concentration in a nontraditional mortgage portfolio, the institution should:

Have well-developed monitoring systems and risk management practices
Monitor by originator and key borrower and portfolio characteristics
Not understand the risk of payment shock and negative amortization
A and B

Answer(s): D

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QUESTION: 32

In Guidance on Nontraditional Mortgage Product Risks, if the institution has a concentration in a nontraditional mortgage portfolio, the institution should:

Have well-developed monitoring systems and risk management practices
Monitor by originator and key borrower and portfolio characteristics
Not understand the risk of payment shock and negative amortization
A and B

Answer(s): D

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QUESTION: 32

In Guidance on Nontraditional Mortgage Product Risks, if the institution has a concentration in a nontraditional mortgage portfolio, the institution should:

Have well-developed monitoring systems and risk management practices
Monitor by originator and key borrower and portfolio characteristics
Not understand the risk of payment shock and negative amortization
A and B

Answer(s): D

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Banking CERTIFIED REGULATORY COMPLIANCE MANAGER (CRCM) CRCM Exam Questions in PDF

Free Banking CRCM Dumps Questions (page: 19)

QUESTION: 31

QUESTION: 31

QUESTION: 32

QUESTION: 32

QUESTION: 32