Certified Regulatory Compliance Manager (CRCM) — Question 16

Which one of the following is out of the FIRREA penalties included in the enforcement section of Adjusted Mortgage Regulation (12 CFR 34)?

Answer options

• A. Penalties up to $7,500 per day for violations of laws and regulations
• B. Penalties up to $47,500 per day if violations or unsafe or unsound practices are engaged in recklessly or are part of a pattern of misconduct that causes more than a minimal loss to the bank or any pecuniary gain to the parties involved
• C. Penalties up to $1,375,000 per day against persons who knowingly commit a violation and knowingly or recklessly cause a substantial loss to the bank or a substantial benefit to the party
• D. Penalties up to $6,500 per day for violations of laws and regulations

Correct answer: A, C

Explanation

The correct answers are A and C, as they are not included in the FIRREA penalties. Option B and D outline specific penalties that fall within the FIRREA regulations, while A and C describe penalties that exceed or do not match the stipulated amounts for this regulation.