Banking CRCM Exam (page: 20)
Banking CERTIFIED REGULATORY COMPLIANCE MANAGER (CRCM)
Updated on: 01-Aug-2025

Viewing Page 20 of 276

If the institution offers both full and reduced documentation loans and there is a pricing premium attached to the reduced documentation loan, the consumer should:

  1. Be alerted to this fact
  2. Not be alerted to this fact
  3. Provide consumers with a clear statement of the options available
  4. Not lead consumers with payment option ARMs to choose a non-amortizing or negatively amortizing payment

Answer(s): A



If the institution offers both full and reduced documentation loans and there is a pricing premium attached to the reduced documentation loan, the consumer should:

  1. Be alerted to this fact
  2. Not be alerted to this fact
  3. Provide consumers with a clear statement of the options available
  4. Not lead consumers with payment option ARMs to choose a non-amortizing or negatively amortizing payment

Answer(s): A



If the institution offers both full and reduced documentation loans and there is a pricing premium attached to the reduced documentation loan, the consumer should:

  1. Be alerted to this fact
  2. Not be alerted to this fact
  3. Provide consumers with a clear statement of the options available
  4. Not lead consumers with payment option ARMs to choose a non-amortizing or negatively amortizing payment

Answer(s): A



Institutions that offer nontraditional mortgage products should make sure they comply with the following, as applicable, EXCEPT:

  1. Truth in Lending Act
  2. FTC Act (i.e., Unfair and Deceptive Acts and Practices)
  3. RESTA
  4. State laws prohibiting deceptive trade practices

Answer(s): C



Institutions that offer nontraditional mortgage products should make sure they comply with the following, as applicable, EXCEPT:

  1. Truth in Lending Act
  2. FTC Act (i.e., Unfair and Deceptive Acts and Practices)
  3. RESTA
  4. State laws prohibiting deceptive trade practices

Answer(s): C



Viewing Page 20 of 276



Share your comments for Banking CRCM exam with other users:

LeAnne Hair 8/24/2023 12:47:00 PM

#229 in incorrect - all the customers require an annual review
UNITED STATES