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Banking CRCM Exam
CERTIFIED REGULATORY COMPLIANCE MANAGER (CRCM) (Page 23 )

Updated On: 12-Jan-2026
Page 23 of 276
PDF with 463 Questions

First National Bank is a member of a multibank holding company. The bank makes ARM loans and occasionally purchases ARM loans from its affiliate national and state banks as well as from nonaffiliate banks. Which of the following practices is NOT acceptable under the OCC ARM regulation?

  1. The bank purchases loans from its state affiliate banks where the index on the loan is tied to First National's prime rate.
  2. The bank makes loans to purchase single-family dwellings with interest rates that may be adjusted from time to time.
  3. The bank links the interest rate indices on its own ARM loans to them national prime rate as published in The Wall Street Journal.
  4. The bank requires its national bank affiliates to use the national prime rate as published in The Wall Street Journal as the index for any of the ARM loans it purchases.

Answer(s): A



On which of the following adjustable-rate loans must the bank use an index beyond its control?

  1. A loan to purchase a home to refurnish and resell for a profit
  2. A loan to purchase a vacation home
  3. A loan to purchase a duplex where the borrower will live in one of the units
  4. A loan to purchase a home to be used as rental property

Answer(s): C



If a bank makes a loan that is in compliance with Regulation U, what will be the status of the loan at its consummation?

  1. The loan will be in compliance until it is renewed, regardless of the reduction of the borrower's equity in the stock.
  2. The loan will be in compliance only if the value of the stock remains within the margin requirements.
  3. The loan will be in compliance unless the status of the stock changes (for example, margin or nonmargin)
  4. The loan will always be in compliance until its maturity, regardless of the reduction of the borrower's equity in the stock, provided there are no substitutions or withdrawals that adversely affect the loan value.

Answer(s): D



How is the maximum loan value of margin stock defined?

  1. As a percentage of the amount to be loaned
  2. As a percentage of the book value of the stock
  3. As a percentage of the current market value of the stock
  4. As a percentage of the good-faith loan value of the stock

Answer(s): C



With regard to standards for wear and use of leased property, which of the following statements is true?

  1. A lessor must adhere to the manufacturer's standards for wear and use of the leased property.
  2. A lessor must develop and disclose its own standards for wear and use of leased property.
  3. A lessor must provide a notice of wear and use standards on motor vehicle leases.
  4. A lessor need not provide a notice of wear and use standards on motor vehicle leases if the lessor imposes an automatic, standardized charge.

Answer(s): C



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