CRB Financial Regulations & Compliance 5

Question 1

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

Accepted Answer

TRID (TILA-RESPA Integrated Disclosure)

Answer

TRID, which integrated TILA and RESPA disclosures, requires lenders to provide a Loan Estimate within three business days of receiving a completed mortgage application.

Question 2

Under the Fair Credit Reporting Act (FCRA), how long may most negative information remain on a consumer's credit report?

Accepted Answer

7 years

Answer

The FCRA generally limits most negative credit information, such as late payments and collections, to seven years on a consumer credit report.

Question 3

What does 'Regulation D' historically govern in retail banking?

Accepted Answer

Minimum reserve requirements and limits on certain savings account withdrawals

Answer

Regulation D historically established reserve requirements and limited certain savings and money market account withdrawals to six per month, though the withdrawal limit was suspended in 2020.

Question 4

A bank discovers that an employee has been falsifying loan applications. Under BSA, what must the bank do?

Accepted Answer

File a SAR with FinCEN within 30 calendar days of detection

Answer

Banks must file a SAR within 30 calendar days (or 60 days if no suspect is identified) when they detect known or suspected employee fraud.

Question 5

Which of the following best describes 'predatory lending'?

Accepted Answer

Imposing unfair or abusive loan terms on borrowers, often targeting vulnerable populations

Answer

Predatory lending involves deceptive, coercive, or abusive loan terms—such as excessive fees or unsuitable products—often targeting elderly, low-income, or minority borrowers.

(CRB) Certified Retail Banker Practice Test

(CRB) Certified Retail Banker Practice Test

CRB Financial Regulations & Compliance 5