CRCM Community Reinvestment Act (CRA) Compliance 2

Question 1

Which of the following BEST qualifies as a community development service under CRA?

Accepted Answer

Providing free financial literacy workshops to low- and moderate-income individuals

Answer

Financial literacy education and counseling services targeted to LMI individuals qualify as community development services under CRA.

Question 2

Under CRA, the public file that a bank must maintain includes:

Accepted Answer

The bank's current CRA public notice and its most recent CRA performance evaluation

Answer

A bank's public CRA file must contain its current CRA notice and its most recent written CRA performance evaluation, among other items, but never confidential borrower or employee information.

Question 3

The CRA lending test for large banks primarily evaluates:

Accepted Answer

Geographic distribution and borrower characteristics of home mortgage, small business, small farm, and community development loans

Answer

The lending test evaluates the full range of a large bank's home mortgage, small business, small farm, and community development lending, examining geographic distribution and the income levels of borrowers served.

Question 4

Approximately how often are CRA performance evaluations typically conducted for banks in good standing?

Accepted Answer

Every 2 to 5 years, depending on bank size and prior rating

Answer

CRA examinations are generally conducted on a cycle of approximately every 2 to 5 years, with the frequency influenced by the bank's asset size and its most recent CRA rating.

Question 5

The CRA strategic plan option allows a bank to:

Accepted Answer

Set its own measurable CRA goals, subject to public comment and regulatory approval

Answer

Under the strategic plan option, a bank may develop its own CRA goals, make the plan available for public comment, and then submit it to its regulator for approval, providing a customized compliance framework.

CRCM - Certified Regulatory Compliance Manager Practice Test

CRCM - Certified Regulatory Compliance Manager Practice Test

CRCM Community Reinvestment Act (CRA) Compliance 2