Certified Regulatory Compliance Manager (CRCM) — Question 15
In the mid-1980s a movement began among the federal supervisory agencies to produce a uniform ARM regulation. In 1988, the Federal Reserve Board added the uniform ARM disclosure requirements to a regulation. Therefore, most of the original OCC ARM consumer protection requirements are now found in this new regulation. Adjustable rate mortgage loans made by national banks may be subject to the OCC's ARM regulation or the requirements of this new regulation, or both. This new regulation is:
Answer options
- A. Regulation Z
- B. Truth in Lending
- C. CFR 34.21, 34.22 and 34.23
- D. FIRREA penalty
Correct answer: A, B
Explanation
The correct answer is A, Regulation Z, which encompasses the disclosure requirements for adjustable rate mortgages. While B, Truth in Lending, is related to the same context, it is not specifically the new regulation introduced in 1988. Options C and D are not directly related to the uniform ARM regulation established by the Federal Reserve Board.