Free American Bankers Association CRCM Exam Questions

Become American Bankers Association Certified with updated CRCM exam questions and correct answers

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Total 465 Questions | Updated On: Mar 07, 2026

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Question 1

Underwriting standards in Subprime Mortgage Lending include:

A : The borrower’s debt-to-income ratio should include the borrower’s total yearly housing-related payments as a percentage of gross monthly income

B : Institutions should have a clear policy governing the use of risk-layering features, such as reduced documentation loans or simultaneous second lien mortgages

C : Stated income and reduced documentation loans to subprime borrowers should be made only if there are clear, documented mitigating factors

D : Mitigating factors should be present when risk layering features are combined in order to support the underwriting decision and the borrower’s repayment capacity

Answer: A

Question 2

This is a loan term or an arrangement that modifies a loan term under which a bank agrees to suspend all or part of a customer’s loan obligation on the occurrence of a specified event. It May be a part of the loan itself or a separate agreement.Does not include a loan payment deferral arrangement where the borrower or the bank can unilaterally defer a payment.What is it?

A : Debt suspension agreement (DSA)

B : Anti-dying

C : Debt cancellation contract (DCC)

D : ALLL

Answer: A

Question 3

On foreclosure, which of the following loans is subject to the reporting requirements for foreclosed and abandoned property?

A : A loan made to purchase a family car, secured by the car

B : An unsecured loan made to purchase a computer used in the borrower’s business

C : A loan made to purchase a residence, secured by the residence

D : A loan made to purchase a home computer, secured by the computer

Answer: C

Question 4

A routine review of account records reveals that suspicious activity involving foreign currency hasoccurred in the account of one of the bank’s directors. Which of the following actions should betaken FIRST?

A : A SAR should be fileD.

B : The bank’s board of directors should discuss the account activity without the affected director being present.

C : The bank’s president should meet with the affected director to discuss the account activity.

D : The bank should file a CTR, checking the box that indicates the report is for suspicious activity.

Answer: A

Question 5

First National Bank is a wholly owned subsidiary of Bank Holding Company, Inc.Which of the following companies is NOT an affiliate of First National Bank?

A : A company that owns 60 percent of Bank Holding Company, Inc.

B : A company of which First National owns 100 percent of the stock, set up solely to hold the title to the First National Bank building

C : A company established to sell securities and that is 100 percent owned by Bank Holding Company, Inc.

D : Another bank that is owned by Bank Holding Company, Inc.

Answer: B

Page: 1 / 93

Total 465 Questions | Updated On: Mar 07, 2026

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