Certified Regulatory Compliance Manager (CRCM) — Question 142

Which of the following describes the record retention requirements under Regulation B for a credit application from a business with annual gross revenues in excess of$1,000,000?

Answer options

• A. The bank must retain records for 30 days; however, if a written statement of action is requested, the bank must retain the records for 90 days.
• B. After 6 months, the bank must dispose of the applications and records in accordance with waste disposal rules promulgated by the EPA.
• C. The bank must retain records for 12 months if a written statement of adverse action is requested within 60 days after notifying the applicant of the action taken.
• D. The bank must retain records for 25 months from the date of application.

Correct answer: C

Explanation

The correct answer is C because Regulation B mandates that records must be retained for 12 months if a written statement of adverse action is requested within 60 days. Option A is incorrect as the specified retention periods do not align with Regulation B requirements, while option B misstates the disposal timelines and regulations. Option D also does not comply with the required retention period for adverse actions as outlined in Regulation B.