Certified Regulatory Compliance Manager (CRCM) — Question 21

The purpose of guidelines for National Banks to Guard against Predatory and Abusive Lending Practices- AL-2003-2 includes all of the following EXCEPT:

Answer options

• A. Provide examples to national banks of practices that may be abusive
• B. Advise banks on how they should avoid abusive practices
• C. Banks should consider appropriate discount rates, credit loss rates, and prepayment rates when valuing these assets
• D. Show how some abusive lending can involve unfair or deceptive practices and therefore violate the Federal Trade Commission Act

Correct answer: C

Explanation

Option C is correct because it does not pertain to the guidelines aimed at preventing predatory lending, which focus on identifying and advising against abusive practices. Options A, B, and D all relate directly to the guidelines' objectives of educating and protecting banks from engaging in harmful lending behaviors.