CRCM Trivia 4

Question 1

Under the Truth in Savings Act, what term describes the percentage rate reflecting the total amount of interest paid on an account based on the annual percentage rate and frequency of compounding?

Accepted Answer

Annual Percentage Yield (APY)

Answer

The Annual Percentage Yield (APY) reflects the total interest earned on a deposit account in one year, taking compounding frequency into account, as required by Regulation DD.

Question 2

Which federal law requires financial institutions to establish a Customer Identification Program (CIP) as part of their BSA compliance?

Accepted Answer

USA PATRIOT Act of 2001

Answer

The USA PATRIOT Act of 2001 required financial institutions to implement CIP procedures to verify the identity of customers opening new accounts.

Question 3

Under the Fair Debt Collection Practices Act (FDCPA), what is the maximum number of times a debt collector may call a consumer at their workplace if told calls are unwelcome?

Accepted Answer

None — calls must cease immediately

Answer

Under the FDCPA, once a consumer tells a debt collector they cannot receive calls at work, the collector must cease all future workplace calls.

Question 4

What is the term for the compliance risk management framework that includes policies, procedures, training, monitoring, and corrective action?

Accepted Answer

Compliance Management System (CMS)

Answer

A Compliance Management System (CMS) is the formal framework regulators expect financial institutions to use to manage compliance risk across all business lines.

Question 5

Which regulation implements the Home Ownership and Equity Protection Act (HOEPA) for high-cost mortgages?

Accepted Answer

Regulation Z

Answer

Regulation Z implements both TILA and HOEPA, establishing special disclosures and restrictions for high-cost mortgage loans that exceed certain APR and fee thresholds.

CRCM - Certified Regulatory Compliance Manager Practice Test

CRCM - Certified Regulatory Compliance Manager Practice Test

CRCM Trivia 4