Certified Regulatory Compliance Manager (CRCM) — Question 17

In Requirements section of Adjusted Mortgage Regulation (12 CFR 34), for loans subject to both the OCC ARM regulation and to Regulation Z, 12 CFR 226.19(b)
""that is, loans made to an individual, for personal purposes, secured by the borrower's principal dwelling, and having a term longer than one year"" the index to which the interest rate is tied must be:

Answer options

• A. Specified in loan documents
• B. Readily available to and verifiable by the browser
• C. Multiple values of a chosen measure or a moving average of the chosen measure calculated over a specified period
• D. A and B only

Correct answer: D

Explanation

The correct answer is D because the index must be both specified in the loan documents (A) and readily available for verification by the borrower (B). Option C is incorrect because it does not align with the requirements for the index in this context, which focus on clarity and accessibility rather than multiple values or averages.