Certified Regulatory Compliance Manager (CRCM) — Question 18

Subprime borrowers are those with weakened credit histories or reduced repayment capacity. Loans to these borrowers historically have had a higher delinquency rate. Many lenders have expanded their lending programs and added subprime products as a method of meeting their _______________ by providing greater credit access to lower-income consumers.

Answer options

• A. Community Reinvestment Act (CRA) responsibilities
• B. Fraudulent marketing tactics
• C. FTC Act
• D. Predatory Lending

Correct answer: A

Explanation

The correct answer is A because the Community Reinvestment Act (CRA) encourages lenders to meet the credit needs of all segments of their communities, including low-income borrowers. Options B and D are incorrect as they relate to unethical practices rather than regulatory responsibilities, while option C, the FTC Act, deals primarily with consumer protection rather than lending practices.