Certified Regulatory Compliance Manager (CRCM) — Question 92

Of the following loans made by a national bank, which loan is NOT covered by the OCC ARM regulation?

Answer options

• A. A loan to purchase a single-family dwelling to be used as a residence, secured by the dwelling with an adjustable interest rate
• B. A loan made to purchase a mobile home to be used as rental property, secured by the home with a variable interest rate
• C. A loan made to purchase an eight-unit apartment complex, secured by the building, made payable on demand with a variable rate of interest
• D. A loan made to purchase a duplex, secured by the dwelling, amortized over 15 years with a 5-year maturity, at a variable rate of interest

Correct answer: C

Explanation

The correct answer is C because the OCC ARM regulation does not apply to loans made for commercial purposes, such as purchasing an eight-unit apartment complex. Options A, B, and D involve residential properties, which are covered by the OCC ARM regulation due to their nature of being used for personal or rental residential purposes.