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Question 99

The OCC recommends all but one of the following actions to help prevent a national bank's purchasing or acquiring predatory or abusive loans. Which practice is

NOT recommended?

    Correct Answer: D

    The OCC (Office of the Comptroller of the Currency) recommends actions to help prevent a national bank from purchasing or acquiring predatory or abusive loans. These recommended actions include establishing policies on the bank's relationship with third-party brokers and originators, reviewing loan documentation, and auditing the third-party broker. However, requiring the broker to establish a reserve account for legal contingencies is not among the recommended practices.

Discussion
Cam22Option: D

he OCC (Office of the Comptroller of the Currency) recommends several actions to help prevent a national bank from purchasing or acquiring predatory or abusive loans. However, requiring the broker to establish a reserve account for legal contingencies is not among the recommended practices. The other options, including establishing policies on the bank's relationship with third-party brokers and originators, reviewing loan documentation, and auditing the third-party broker, are all recommended by the OCC to prevent the acquisition of predatory or abusive loans.