Certified Regulatory Compliance Manager (CRCM) — Question 134

Bob Richardson has had three loan applicants this morning:
"¢ Heather Smith, age 17, who needs a car loan for $9,500 for 3 years
"¢ John Bako, age 42, who would like a stock loan for $15,000 for 1 year
"¢ Maynard Williams, age 70, recently retired, who needs a $50,000 home improvement loan for 12 years Bob's bank uses a judgmental credit evaluation system.
For which of these applications is Bob able to consider the age of the applicant as a factor in the decision making process?

Answer options

• A. All of them
• B. None of them
• C. Only Mr. Williams
• D. Mr. Williams and Ms. Smith

Correct answer: D

Explanation

The correct answer is D because both Mr. Williams and Ms. Smith are in age brackets that may influence Bob's judgment based on the bank's evaluation system. Mr. Williams, being a retiree, might require special consideration for a home improvement loan, while Ms. Smith is a minor whose eligibility for a car loan could be impacted by her age. Conversely, John Bako, at age 42, does not present age-related concerns for the loan he seeks.