Certified Regulatory Compliance Manager (CRCM) — Question 77

Federal regulations define special-purpose credit-12 CFR 202.8 to include:

Answer options

• A. Any credit assistance program authorized by federal or state law for the benefit of an economically disadvantaged class of persons
• B. Any credit assistance program offered by a not-for-profit organization for the benefit of its members or for the benefit of an economically disadvantaged class of person
• C. A special-purpose credit program must not discriminate on a prohibited basis; however, it can require its participants to share a particular characteristic (such as race or sex) provided the requirement was not established to evade the requirements of the ECOA. If the participants must share a common characteristic, the bank may collect information on that characteristic to determine eligibility
• D. If the program includes financial need as a criterion, the creditor can never request and consider information regarding the applicant

Correct answer: A, B, C

Explanation

The correct answers, A, B, and C, accurately reflect the definitions and requirements for special-purpose credit programs as outlined in federal regulations. Option D is incorrect because it misrepresents the ability of creditors to consider financial need and associated information, which is not an absolute prohibition under these regulations.