Free CRCM Practice Test & Exam Questions (Page 44 )

Which of the following actions subjects a lender to mortgage interest reporting requirements?

The lender holds mortgage loans in the course of its trade or business.
The lender is a qualified FHA or VA lender.
The lender receives at least $500 in interest on a mortgage loan during a calendar year.
The lender offers unsecured home improvement loans.

Answer(s): A

By which date must an interest reporting statement be sent to the borrower's last known address?

Answer(s): B

On which of the following loans does First Savings Bank NOT have to provide a 1098-E (Student Loan Interest) report?

A $10,000 tuition loan made to Bobby Wilcox, a student at the state university, guaranteed by the Department of Education
A $35,000 line of credit made to Don and Barbara Cocelli, secured by their home, for the payment of certified school expenses for their twin daughters at an accredited private school
A $15,000 loan to Linda Chu to be used for the purpose of paying tuition and fees and purchasing college books, lab equipment, and a computer for use in her education at the local community college
A $12,000 loan to Paul and Rhonda Pena and their daughter Jennifer, used to pay her college tuition as well as the tuition at the private high school her sister, Jeanne, attends

Answer(s): D

Which of the following activities is NOT a permissible nonbanking activity?

Answer(s): B

Which of the following transactions does NOT require prior approval of the Federal Reserve Board?

The formation of a bank holding company
The acquisition by a bank holding company of a subsidiary
The acquisition of 25 percent of voting stock of a bank by another bank, in good faith, in its fiduciary capacity with no power to vote
The acquisition of 25 percent of voting stock of a bank by another bank in its fiduciary capacity for the benefit of the acquiring bank's employees

Answer(s): C

Banking CRCM Exam
CERTIFIED REGULATORY COMPLIANCE MANAGER (CRCM) (Page 44 )