American Bankers Association Exam CRCM Topic 4 Question 83 Discussion

Actual exam question for American Bankers Association's CRCM exam

Question #: 83
Topic #: 4

[All CRCM Questions]

Which of the following are recommended practices In Avoiding Predatory and Abusive Lending Practices in Brokered and Purchased Loans---AL-2003-3?

AHave written agreements with third-party brokers that specifically and clearly address the rights and responsibilities of each party. Written agreements should
1. Ensure that no inappropriate compensation exists
2. Provide for indemnification to the bank
3. Enable banks to exit the arrangement through a termination procedure
4. Provide for the bank's and the OCC's ability to access all records of the third party and to audit the third party's operations

BVerify that brokers and originators have established policies to ensure that loans will comply with all applicable laws

CEstablish an effective management information system to monitor the performance of third-party brokers and originators

DAll of the above

Show Suggested Answer

Suggested Answer: A

by Helene at Mar 16, 2024, 11:19 PM

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Torie

9 days ago

Definitely option D. That covers all the key practices recommended in the guidance to avoid predatory lending.

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Dominga

10 days ago

I'm not sure about D. I think B) Verify that brokers and originators have established policies is also important to ensure compliance.

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Becky

12 days ago

I agree with Sage. Having written agreements and monitoring performance are crucial in avoiding predatory lending practices.

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Sage

16 days ago

I think the answer is D) All of the above. It makes sense to have written agreements, verify compliance with laws, and monitor performance.

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