If the institution offers both full and reduced documentation loans and there is a pricing premium attached to the reduced documentation loan, the consumer should:

A. Be alerted to this fact

B. Not be alerted to this fact

C. Provide consumers with a clear statement of the options available

D. Not lead consumers with payment option ARMs to choose a non-amortizing or negatively amortizing payment

This is a loan term or an arrangement that modifies a loan term under which a bank agrees to cancel all or part of a customer's loan obligation on the occurrence of a specified event. It may be included as a part of the loan documents, or it may be a separate agreement.

What is it?

A. Debt suspension agreement (DSA)

B. Anti-dying

C. Debt cancellation contract (DCC)

D. ALLL

Hector Martinez is a loan officer in a non-community property state. He receives a verbal request for a small business working capital loan from Leon Rogers for his technology consulting business. The business is a sole proprietorship. Mr. Rogers gives Hector a written business plan for his business, a financial statement for the business for the past two years, and a personal financial statement that includes information on himself and his wife. Can Hector assume that the application is a joint application from Mr. Rogers and his wife?

A. Yes. Because the financial statement is signed by both Mr. and Mrs. Rogers and includes joint information, the application can be considered to be from both spouses.

B. Yes. Because the business is a sole proprietorship, the spouse's financial information is important.

C. No. The bank cannot assume the application is a joint one simply on the basis of submission of joint financial information.

D. No. Because the business is a sole proprietorship, the bank should assume the application is for individual credit.

Which of the following actions subjects a lender to mortgage interest reporting requirements?

A. The lender holds mortgage loans in the course of its trade or business.

B. The lender is a qualified FHA or VA lender.

C. The lender receives at least $500 in interest on a mortgage loan during a calendar year.

D. The lender offers unsecured home improvement loans.

On March 1, First National Bank opened three accounts:

1) a savings account for Margaret Nelson, who did not have a TIN but signed a certification that she had applied for one;

2) a money market savings account for Linda Miller, who could not remember her TIN but promised to provide it at the earliest possible date; and

3) a certificate of deposit for John Whiteside, who completed a Form W-9 but provided a TIN with only eight numbers. Ms. Nelson provided her newly acquired TIN to the bank on April 15, Ms. Miller provided her TIN on April 5, and Mr.

Whiteside provided his TIN to the bank on March 10. Interest was paid on all of these accounts on March 31, and the bank withheld 28 percent of the interest payments. On April 20 all the payees requested that the withheld interest be

refunded.

What should the bank do?

A. Refund the withheld interest to all payees

B. Refund to Ms. Nelson and Mr. Whiteside because the interest was erroneously withheld

C. Refund only to Mr. Whiteside because the interest was erroneously withheld

D. Refund only to Ms. Nelson because the interest was erroneously withheld

Williams National Bank has its home office in New York State; however, it has branches in NebraskA. The federal banking agencies most recent host state loanto- deposit publication lists the loan-to-deposit ratio for Nebraska as 78 percent. For Williams Bank to pass the loan-to-deposit screen of the Reigle-Neal Act, what must its loan-to-deposit ratio be for Nebraska?

A. At least 78 percent

B. At least 50 percent

C. At least 39 percent

D. At least 25 percent

First National Bank advises Country A, a boycotting country, on various U.S. investments. Country A instructs First National Bank not to recommend for investment any shares of certain blacklisted companies. First National Bank follows this instruction. Has First National Bank participated or cooperated in an international boycott under the IRS regulations by this action?

A. Yes. The companies are the subject of a boycott.

B. No. The bank may agree not to recommend certain companies.

C. Yes, if the companies are part of a boycott.

D. No, but the bank must report this action to the IRS.

Records that must be retained for deposit accounts include which of the following?

A. Average daily balance

B. Overdraft history

C. All amounts of currency deposited or withdrawn

D. Customer's TIN

A must settle for an item with its administrative bank, whether or not it received the item from that bank. Settlement with its administrative bank is deemed to be settlement with the Reserve Bank that sent the item.

A. Paying bank

B. Clearing Agent

C. Regulation J

D. Regulation CC

The manager of Main Street branch calls and relates the following information: John Smith purchased a cashier's check for $1,000 cash at 10:00 A. m. on Tuesday. At 11:30 am. Mr. Smith returned and purchased a cashier's check for $2,500 cash and deposited traveler's checks totaling $9,000 into his checking account. At 4:00 p.m. Mr. Smith returned and deposited $8,000 cash into his checking account. This deposit was after normal banking hours, so it was recorded as of Wednesday's business date. What action should the bank take?

A. None, because no single cash transaction exceeded $10,000

B. File a Currency Transaction Report (CTR) for $11,500

C. Record the $1,000, $2,500, and $9,000 transactions on the bank's monetary instrument sales log because the total exceeds the $3,000 threshold

D. Record the $1,000 and $2,500 transactions on the bank's monetary instrument sales log because the total exceeds the $3,000 threshold