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CRCM Exam - Question 24


The purpose of advisory letter in Avoiding Predatory and Abusive Lending Practices in Brokered and Purchased Loans- AL-2003-3 is to:

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Correct Answer: B

The primary purpose of the advisory letter AL-2003-3 is to alert national banks to the risks they take if they make loans through brokers or purchase loans that contain or reflect abusive or predatory terms or practices. This is intended to prevent banks from becoming involved in harmful lending practices and to encourage them to conduct due diligence to avoid such risks.

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JessyJazz24Option: B
Oct 4, 2023

Always check purchases don't abuse the bank with loans

Cam22Option: B
Mar 15, 2024

This option accurately describes the primary purpose of the advisory letter AL-2003-3, which is to caution national banks about the potential risks associated with engaging in or being indirectly involved in predatory and abusive lending practices through brokers or by purchasing loans.