First National Bank is a member of a multibank holding company. The bank makes ARM loans and occasionally purchases ARM loans from its affiliate national and state banks as well as from nonaffiliated banks. Which of the following practices is NOT acceptable under the OCC ARM regulation?
A) The bank purchases loans from its state affiliate banks where the index on the loan is tied to First National's prime rate.
B) The bank makes loans to purchase single-family dwellings with interest rates that may be adjusted from time to time.
C) The bank links the interest rate indices on its own ARM loans to them national prime rate as published in The Wall Street Journal.
D) The bank requires its national bank affiliates to use the national prime rate as published in The Wall Street Journal as the index for any of the ARM loans it purchases.
Correct Answer:
Verified
Q76: Requirements-12 CFR 202.2, 202.4, 202.5, 202.6, and
Q77: Federal regulations define special-purpose credit-12 CFR 202.8
Q78: An oral or written request for credit
Q79: Credit scoring systems:
A) Evaluate an applicant's creditworthiness
Q80: Definition of completed application-12 CFR 202.2(f) is:
A)
Q82: Legislation was recently enacted to reform consumer
Q83: When developing a training plan for commercial
Q84: A bank's president would like to begin
Q85: During a recent compliance examination, regulators cited
Q86: According to FDIC Guidance on Spousal Signature
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents