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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Lenna

10 days 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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Stephaine

15 days 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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