CRB Banking Products & Customer Service 3

Question 1

A customer age 68 asks about a product that lets them convert home equity into cash without monthly mortgage payments. What product applies?

Accepted Answer

Reverse Mortgage

Answer

A reverse mortgage allows eligible homeowners 62+ to convert home equity to cash with no required monthly mortgage payments.

Question 2

Which type of checking account is specifically designed for customers who cannot qualify for a standard account due to prior banking history?

Accepted Answer

Second Chance Checking Account

Answer

Second chance checking accounts serve customers with negative ChexSystems histories, providing a pathway back to mainstream banking.

Question 3

Under the Truth in Savings Act (TISA), banks must disclose the Annual Percentage Yield (APY) rather than just the interest rate because:

Accepted Answer

APY reflects the effect of compounding and allows accurate comparison between products

Answer

APY incorporates the compounding frequency, giving consumers a standardized measure to compare savings products across institutions.

Question 4

A customer holds a joint checking account with right of survivorship. Upon one account holder's death, the funds:

Accepted Answer

Pass directly to the surviving account holder

Answer

Right of survivorship means funds transfer automatically to the surviving joint owner, bypassing probate.

Question 5

Which consumer protection law requires lenders to provide a Loan Estimate within three business days of receiving a mortgage application?

Accepted Answer

TILA-RESPA Integrated Disclosure (TRID) Rule

Answer

TRID (also known as the Know Before You Owe rule) mandates delivery of the Loan Estimate within three business days of application.

(CRB) Certified Retail Banker Practice Test