American Bankers Association CRCM Exam Questions & Answers

Under Regulation U, prior to extending credit secured by margin stock for more than $100,000, a national bank must obtain which of the following?

A. Certificate of value for the collateral

B. Written statement from the borrower as to the purpose of the loan

C. Written statement certifying the borrower's business address and daytime phone number

D. Notice from the borrower as to his willingness to provide additional margin stock as collateral

Which of the following items is considered a low-quality asset?

A. An asset in a nonaccrual status

B. An asset on which interest is past due 15 days

C. An asset that will be transferred to the workout area within the next 60 days so that the terms can be renegotiated

D. None of the above

Which of the following institutions is NOT subject to the coverage of HMDA?

Bank A, with assets of $55 million and located in a large urban city, makes home improvement loans and some home purchase loans to existing customers, but no mortgage loans. Bank B, with assets of $9 million and located in a rural area, has several branches, also in rural areas, including one that makes home improvement and home purchase loans. Mortgage Company C, with assets of $75 million and a home office in a large East Coast city, makes exclusively home purchase loans.

A. All the institutions are subject to HMDA

B. Bank A

C. Bank B

D. Mortgage Company C