American Bankers Association CRCM Exam - Topic 8 Question 5 Discussion

Actual exam question for American Bankers Association's CRCM exam

Question #: 5
Topic #: 8

In Requirements section of Adjusted Mortgage Regulation (12 CFR 34), for loans subject to both the OCC ARM regulation and to Regulation Z, 12 CFR 226.19(b)---that is, loans made to an individual, for personal purposes, secured by the borrower's principal dwelling, and having a term longer than one year--- the index to which the interest rate is tied must be:

ASpecified in loan documents

BReadily available to and verifiable by the browser

CMultiple values of a chosen measure or a moving average of the chosen measure calculated over a specified period

DA and B only

Show Suggested Answer

Suggested Answer: D

by Josphine at May 08, 2022, 01:21 AM

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Marya

8 months ago

I’m surprised this isn’t more complicated!

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Lorita

9 months ago

I think it’s actually C, multiple values make more sense.

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Rolland

9 months ago

Wait, is it really just A and B? Sounds too simple.

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Brande

9 months ago

Totally agree, it’s all about transparency!

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Phyliss

9 months ago

The index must be specified in the loan documents.

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Andra

9 months ago

I'm pretty confident the answer is A. The chief information officer is typically responsible for overseeing IT/technology initiatives and reporting on them to executive leadership and the board. That seems to match what this question is asking about.

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Arlean

9 months ago

Hmm, I'm not sure about this one. I'll have to think it through carefully.

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Elinore

10 months ago

Hmm, this seems like a straightforward question about bit error rates. I'll need to think carefully about the normal range they mentioned.

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