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Exam CRCM topic 1 question 24 discussion

Actual exam question from ABA's CRCM
Question #: 24
Topic #: 1
[All CRCM Questions]

The purpose of advisory letter in Avoiding Predatory and Abusive Lending Practices in Brokered and Purchased Loans- AL-2003-3 is to:

  • A. Adopt sound credit underwriting policies
  • B. Alert national banks to the risks they take if they make loans through brokers or purchase loans that contain or reflect abusive or predatory terms or practices
  • C. Adopt policies that address the circumstances under which the bank would make loans that have features associated with abusive lending practices
  • D. Make loans secured by the consumer's home but with high, up-front fees that are financed and secured by the home
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Suggested Answer: B 🗳️

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Cam22
4 months ago
This option accurately describes the primary purpose of the advisory letter AL-2003-3, which is to caution national banks about the potential risks associated with engaging in or being indirectly involved in predatory and abusive lending practices through brokers or by purchasing loans.
upvoted 1 times
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JessyJazz24
9 months, 2 weeks ago
Selected Answer: B
Always check purchases don't abuse the bank with loans
upvoted 1 times
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