CRCM| 550 QUESTIONS| 71 PAGES| WITH COMPLETE SOLUTIONS

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When developing a training plan for commercial lenders, which of the following regulations is least important to include? Correct Answer: Truth in Lending Act, CFPB Regulation Z The federal bankin... g agencies have proposed an amendment to Regulation Z that would require a new early disclosure statement for loans secured by the borrower's principal dwelling. After reading the proposed change, what should the compliance professional do FIRST? Correct Answer: Prepare a summary document that outlines the effects the proposed rule would have on the bank's operations During a recent compliance examination, regulators cited the bank for violations of various marketing regulations. How should the compliance professional FIRST respond? Correct Answer: Review the marketing materials and applicable regulations to verify the finding. A compliance professional is a member of the task force studying how the bank can reduce customer complaints about holding deposits. One proposed solution involves purchasing an expensive system that will reduce the number of holds placed by evaluating the customer's history and relationship with the bank. Which of the following roles is MOST important for the compliance professional on the task force? Correct Answer: Validating the system to ensure it complies with regulatory restrictions A bank has a large mortgage department as well as a high HMDA error rate. An expensive software program could automate the process, but the business unit manager does not want to purchase the software because of its expense. Though it is not as efficient, the manager prefers to make some improvements to the manual process, add some more robust monitoring procedures, and opt not to purchase the software. What should the compliance professional do? Correct Answer: Document the fact that the level of risk present with manual systems is acceptable to the mortgage department business unit During a recent compliance examination, regulatory examiners found that the bank was not conducting flood hazard area determinations before closing on construction loans. The compliance professional has reviewed the files and agreed with the examiners' finding. What should be done FIRST? Correct Answer: Review the bank's flood policies and procedures to determine where the compliance failure occurred [Show More]

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