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Exam CRCM topic 1 question 23 discussion

Actual exam question from ABA's CRCM
Question #: 23
Topic #: 1
[All CRCM Questions]

Predatory lending practices can adversely affect:

  • A. A bank's CRA rating
  • B. Equity shipping
  • C. Loan quality control reviews
  • D. Truth in Lending Act
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Suggested Answer: A 🗳️

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Cam22
4 months ago
Predatory lending practices can indeed have a negative impact on a bank's Community Reinvestment Act (CRA) rating. The CRA encourages banks to meet the credit needs of all segments of their communities, including low- and moderate-income neighborhoods, in a manner consistent with safe and sound banking operations. Engaging in predatory lending practices undermines these objectives and can lead to regulatory scrutiny and a lower CRA rating, reflecting poorly on the bank's commitment to serving its community responsibly.
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JessyJazz24
9 months, 2 weeks ago
Selected Answer: A
The rating will be low
upvoted 1 times
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