Exam CRCM topic 1 question 87 discussion

Actual exam question from ABA's CRCM

Question #: 87
Topic #: 1

Legislation was recently enacted to reform consumer real estate protection laws, and the bank will now have to change the way it documents, discloses, and advertises real estate loans, an integral product line at your bank. What should the compliance professional do FIRST to implement the new law within the bank?

A. Read the law and write a new real estate compliance policy
B. Form a task force of the business unit managers whose departments will be affected by the law to collectively form an action plan
C. Talk to the bank president about the need for more resources in compliance
D. Sign up all bank personnel affected by the changes for a seminar on the new law

Show Suggested Answer

Suggested Answer: B 🗳️

by Cam22 at March 15, 2024, 2:53 a.m.

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Dex24

6 months, 4 weeks ago

B, page 6.

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Cam22

8 months, 3 weeks ago

Selected Answer: A

Option A, "Read the law and write a new real estate compliance policy," represents this initial, critical step. By first reading and understanding the law, the compliance professional can identify the specific changes needed in the bank's procedures, documentation, disclosures, and advertising practices related to real estate loans. This understanding forms the basis for drafting a new compliance policy that aligns with the law's requirements. While the other options are also important components of a comprehensive strategy to comply with the new law, they are subsequent steps that should follow after gaining a thorough understanding of the law itself. Therefore, the correct answer is: A. Read the law and write a new real estate compliance policy.

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