Certified Regulatory Compliance Manager (CRCM) — Question 37

Supervisory review should also be the part of Subprime Mortgage Lending. It should review:

Answer options

• A. Regulatory agencies will continue to focus on risk management review and consumer compliance processes
• B. Hiring and Training of personnel
• C. Agencies will continue to take action against institutions that violate consumer protection laws or fair lending laws or that engages in unfair or deceptive acts or practices or in unsafe or unsound lending practices
• D. Applicability of prepayment penalties

Correct answer: A, C

Explanation

Option A is correct because it highlights the ongoing focus of regulatory agencies on risk management and consumer compliance, which is crucial in subprime lending. Option C, while also valid, focuses more on enforcement actions rather than the supervisory review aspect, making A the more relevant answer. Options B and D are not directly related to supervisory reviews in this context.