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CRCM Exam - Question 19


The purpose of guidelines for National Banks to Guard against Predatory and Abusive Lending Practices- AL-2003-2 includes all of the following EXCEPT:

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Correct Answer: C

The purpose of guidelines for National Banks to Guard against Predatory and Abusive Lending Practices (AL-2003-2) does not include recommendations on considering appropriate discount rates, credit loss rates, and prepayment rates when valuing assets. These concerns are more related to financial management and accounting practices rather than the primary focus of the guidelines, which is to prevent predatory and abusive lending practices. The guidelines aim to provide examples of abusive practices, advise on how to avoid them, and show how certain practices can violate the Federal Trade Commission Act.

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JessyJazz24Option: C
Oct 4, 2023

You will be rewarded for being a great asset to management

Cam22Option: C
Mar 15, 2024

This option does not directly relate to the primary purpose of the guidelines outlined in AL-2003-2, which focuses on guarding against predatory and abusive lending practices. The guidelines aim to provide examples of potentially abusive practices, advise on avoidance of such practices, and explain how abusive lending can violate regulations like the Federal Trade Commission Act. The consideration of discount rates, credit loss rates, and prepayment rates when valuing assets is more pertinent to financial management and accounting practices than to the specific focus on preventing predatory and abusive lending.