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Exam CRCM topic 1 question 14 discussion

Actual exam question from ABA's CRCM
Question #: 14
Topic #: 1
[All CRCM Questions]

Which one of the following is out of the FIRREA penalties included in the enforcement section of Adjusted Mortgage Regulation (12 CFR 34)?

  • A. Penalties up to $7,500 per day for violations of laws and regulations
  • B. Penalties up to $47,500 per day if violations or unsafe or unsound practices are engaged in recklessly or are part of a pattern of misconduct that causes more than a minimal loss to the bank or any pecuniary gain to the parties involved
  • C. Penalties up to $1,375,000 per day against persons who knowingly commit a violation and knowingly or recklessly cause a substantial loss to the bank or a substantial benefit to the party
  • D. Penalties up to $6,500 per day for violations of laws and regulations
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Suggested Answer: AC 🗳️

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Cam22
4 months ago
Selected Answer: D
This option is out of the FIRREA (Financial Institutions Reform, Recovery, and Enforcement Act of 1989) penalties included in the enforcement section of the Adjustable Mortgage Regulation because the FIRREA penalties for violations typically start at higher amounts than $6,500 per day for violations of laws and regulations. The other options (A, B, and C) present penalty figures that are more in line with the scale of penalties outlined under FIRREA for various degrees of violations and misconduct.
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JessyJazz24
9 months, 2 weeks ago
Selected Answer: AC
Penilties can be paid of certain amount where by you can't afford
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