American Bankers Association Exam CRCM Topic 9 Question 91 Discussion

Actual exam question for American Bankers Association's CRCM exam

Question #: 91
Topic #: 9

[All CRCM Questions]

On which of the following adjustable-rate loans must the bank use an index beyond its control?

AA loan to purchase a home to refurnish and resell for a profit

BA loan to purchase a vacation home

CA loan to purchase a duplex where the borrower will live in one of the units

DA loan to purchase a home to be used as rental property

Show Suggested Answer

Suggested Answer: B

by Herminia at Jun 29, 2024, 04:46 AM

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Antione

1 months ago

Wait, we have to use an index beyond the bank's control for rental properties? That's wild! No wonder my landlord's mortgage payments keep changing. *shakes head* Definitely going with D on this one.

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Adjustable-rate loans for rental properties, huh? Time to get out my crystal ball and predict the future of interest rates! *laughs* Seriously though, I agree with Stephaine - option D is the correct answer here.

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Hassie

1 months ago

Ha! These exam questions are always trying to trick us. I'd say C is the way to go - a duplex where the borrower lives in one unit sounds like it should be a standard fixed-rate loan, not an adjustable-rate one.

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Chauncey

2 days ago

B) A loan to purchase a vacation home

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Ulysses

3 days ago

A) A loan to purchase a home to refurnish and resell for a profit

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Lenna

2 months ago

Hmm, this one's tricky. I was leaning towards B, since a vacation home seems like it would need an adjustable-rate loan. But you make a good point, Stephaine. I'll go with D just to be safe.

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Wilbert

1 months ago

Yeah, I agree. D makes sense for a loan on a rental property.

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Alisha

1 months ago

I think D is the correct answer.

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Stephaine

2 months ago

I'm pretty sure it's option D. The bank has to use an index beyond its control for rental property loans, not for personal homes or investment properties that the borrower will live in.

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Carey

2 months ago

I believe option D is the correct choice for loans on rental properties.

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Yvette

2 months ago

I'm not sure, but it does sound logical that rental properties would require an index beyond the bank's control.

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Nidia

2 months ago

Yeah, I agree. The bank needs to use an index beyond its control for rental properties.

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Brice

2 months ago

I think you're right, option D makes sense for rental properties.

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Louisa

2 months ago

I'm not sure, but I think it might also apply to option B for vacation homes.

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Glenn

2 months ago

I agree with Deandrea, because for rental properties, the bank needs to consider market conditions.

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Deandrea

2 months ago

I think the bank must use an index beyond its control for option D.

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American Bankers Association Exam CRCM Topic 9 Question 91 Discussion

Contribute your Thoughts:

Antione

Renea

Hassie

Chauncey

Ulysses

Lenna

Wilbert

Alisha

Stephaine

Carey

Yvette

Nidia

Brice

Louisa

Glenn

Deandrea