CCT Key Federal Regulations 2

Question 1

Under the Bank Secrecy Act (BSA), what is the threshold for filing a Currency Transaction Report (CTR)?

Accepted Answer

$10,000 in a single day

Answer

The BSA requires financial institutions to file a CTR for cash transactions exceeding $10,000 in a single business day.

Question 2

Which federal law established the Consumer Financial Protection Bureau (CFPB)?

Accepted Answer

Dodd-Frank Wall Street Reform and Consumer Protection Act

Answer

The Dodd-Frank Act of 2010 created the CFPB to regulate consumer financial products and services.

Question 3

The Equal Credit Opportunity Act (ECOA) prohibits discrimination based on all of the following EXCEPT:

Accepted Answer

Credit score and payment history

Answer

ECOA prohibits credit discrimination based on protected characteristics; credit scores and payment history are legitimate underwriting factors.

Question 4

Under the Truth in Lending Act (TILA), what must lenders disclose using the Annual Percentage Rate (APR)?

Accepted Answer

The true cost of credit including fees and interest

Answer

TILA requires disclosure of the APR, which reflects the true cost of credit by incorporating fees and interest into a standardized rate.

Question 5

Which regulation implements the Home Mortgage Disclosure Act (HMDA)?

Accepted Answer

Regulation C

Answer

Regulation C implements HMDA, requiring covered lenders to collect and report data on home loan applications and originations.

(CCT) Certified Compliance Technician Practice Test