QUESTION: 24

The purpose of advisory letter in Avoiding Predatory and Abusive Lending Practices in Brokered and Purchased Loans- AL-2003-3 is to:

Adopt sound credit underwriting policies
Alert national banks to the risks they take if they make loans through brokers or purchase loans that contain or reflect abusive or predatory terms or practices
Adopt policies that address the circumstances under which the bank would make loans that have features associated with abusive lending practices
Make loans secured by the consumer's home but with high, up-front fees that are financed and secured by the home

Answer(s): B

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QUESTION: 24

The purpose of advisory letter in Avoiding Predatory and Abusive Lending Practices in Brokered and Purchased Loans- AL-2003-3 is to:

Adopt sound credit underwriting policies
Alert national banks to the risks they take if they make loans through brokers or purchase loans that contain or reflect abusive or predatory terms or practices
Adopt policies that address the circumstances under which the bank would make loans that have features associated with abusive lending practices
Make loans secured by the consumer's home but with high, up-front fees that are financed and secured by the home

Answer(s): B

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QUESTION: 24

The purpose of advisory letter in Avoiding Predatory and Abusive Lending Practices in Brokered and Purchased Loans- AL-2003-3 is to:

Adopt sound credit underwriting policies
Alert national banks to the risks they take if they make loans through brokers or purchase loans that contain or reflect abusive or predatory terms or practices
Adopt policies that address the circumstances under which the bank would make loans that have features associated with abusive lending practices
Make loans secured by the consumer's home but with high, up-front fees that are financed and secured by the home

Answer(s): B

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QUESTION: 25

Examples of unfair practices mentioned in guidelines against Predatory and Abusive Lending includes loan flipping and loan equity stripping. It is said that:

Loan flipping may be unfair because it increases the chances of foreclosure by decreasing home equity and increasing debt burden
Equity stripping is the practice of making loans secured by the consumer's home but with high, up-front fees that are financed and secured by the home
Loan flipping is the practice of making loans secured by the consumer's home but with high, up-front fees that are financed and secured by the home
Equity stripping may be unfair because it increases the chances of foreclosure by decreasing home equity and increasing debt burden

Answer(s): A,B

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Free CRCM Exam Braindumps (page: 19)

QUESTION: 24

QUESTION: 24

QUESTION: 24

QUESTION: 25

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