Exam CRCM topic 1 question 15 discussion

Actual exam question from ABA's CRCM

Question #: 15
Topic #: 1

In Requirements section of Adjusted Mortgage Regulation (12 CFR 34), for loans subject to both the OCC ARM regulation and to Regulation Z, 12 CFR 226.19(b)
""that is, loans made to an individual, for personal purposes, secured by the borrower's principal dwelling, and having a term longer than one year"" the index to which the interest rate is tied must be:

A. Specified in loan documents
B. Readily available to and verifiable by the browser
C. Multiple values of a chosen measure or a moving average of the chosen measure calculated over a specified period
D. A and B only

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Suggested Answer: D 🗳️

by JessyJazz24 at Oct. 4, 2023, 10:45 p.m.

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Cam22

4 months ago

For loans that are subject to both the OCC ARM (Adjustable Rate Mortgage) regulation and Regulation Z, it is required that the index to which the interest rate is tied must be specified in the loan documents (making it clear and understandable for the borrower) and readily available to and verifiable by the borrower (ensuring transparency and fairness in how the interest rates are adjusted). The mention of multiple values or a moving average (option C) does not specifically apply to the requirements for the index as outlined in the regulation sections mentioned

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JessyJazz24

9 months, 2 weeks ago

Selected Answer: D

Don't back chat or mymble just do a and b

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Exam CRCM topic 1 question 15 discussion

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Cam22

JessyJazz24

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