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Banking CRCM Exam
CERTIFIED REGULATORY COMPLIANCE MANAGER (CRCM) (Page 30 )

Updated On: 11-Jan-2026
Page 30 of 276
PDF with 463 Questions

Content of segregated disclosures in Consumer Leasing Act include all of the following EXCEPT:

  1. Amount due at lease signing or delivery, itemized by type and amount, including:
    efundable security deposit
    Advance monthly or other periodic payment
    Capitalized cost reduction
    An itemization of how the amount due will be paid, by type and amount (only required in a motor vehicle lease), using the model form
  2. Number, amount, and due date of payments scheduled and the total amount of periodic payments
  3. In an open-end lease, the descriptive statement "You will owe an additional amount if the actual value of the vehicle is less than the residual value"
  4. If there are multiple items of property, the property description may be separate

Answer(s): D



The act limited balloon payments in consumer leases and enabled consumers to compare lease terms with credit terms where appropriate. The act was implemented by Regulation M (Consumer Leasing). It requires disclosures to consumers before consummation of the lease agreement. This act is:

  1. Consumer leasing act
  2. Risk disclosure act
  3. ALLL
  4. None of these

Answer(s): A



Supervisory review should also be the part of Subprime Mortgage Lending. It should review:

  1. Regulatory agencies will continue to focus on risk management review and consumer compliance processes
  2. Hiring and Training of personnel
  3. Agencies will continue to take action against institutions that violate consumer protection laws or fair lending laws or that engages in unfair or deceptive acts or practices or in unsafe or unsound lending practices
  4. Applicability of prepayment penalties

Answer(s): A,C



Below mentioned is the necessary information that should be included in the _.
Risk of payment shock--potential payment increases; how the new payment will be calculated when the introductory rate expires
Ramifications of prepayment penalties--how they will be calculated, when they will be imposed
Ramifications of balloon payments
Ramifications of the lack of escrowing for taxes and insurance--who is responsible for paying taxes and insurance and the fact that their costs may be substantial Cost of reduced documentation loans--whether there is a pricing premium required

  1. Consumer protection principles
  2. Underwriting standards
  3. Workout arrangements
  4. None of these

Answer(s): A



Underwriting standards in Subprime Mortgage Lending include:

  1. The borrower's debt-to-income ratio should include the borrower's total yearly housing-related payments as a percentage of gross monthly income
  2. Institutions should have a clear policy governing the use of risk-layering features, such as reduced documentation loans or simultaneous second lien mortgages
  3. Stated income and reduced documentation loans to subprime borrowers should be made only if there are clear, documented mitigating factors
  4. Mitigating factors should be present when risk layering features are combined in order to support the underwriting decision and the borrower's repayment capacity

Answer(s): A



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