Commercial Lending and Compliance Expectations

For the purposes of Regulation B, a completed application for a commercial loan is required to have 6 pieces of information which are the consumer’s name, the consumer’s income, the consumer’s social security number to obtain a credit report, the property address, an estimate of the value of the property, and the mortgage loan amount sought.

a. True

Correct Incorrect Correct answer

b. False

Correct Incorrect Correct answer

In determining whether credit to finance an acquisition – such as securities, antiques, or art – is primarily for business or commercial purposes (as opposed to a consumer purpose), the following factors should be considered:

a. The relationship of the borrower's primary occupation to the acquisition. The more closely related, the more likely it is to be business purpose

Correct Incorrect Correct answer

b. The degree to which the borrower will personally manage the acquisition. The more personal involvement there is, the more likely it is to be business purpose.

Correct Incorrect Correct answer

c. The ratio of income from the acquisition to the total income of the borrower. The higher the ratio, the more likely it is to be business purpose.

Correct Incorrect Correct answer

d. All of the above

Correct Incorrect Correct answer

Which of the following are not considered commercial or business credit under Reg B?

a. Public utilities credit and Securities Credit

Correct Incorrect Correct answer

b. Incidental credit and Government Credit

Correct Incorrect Correct answer

c. None of the above

Correct Incorrect Correct answer

d. All of the above

Correct Incorrect Correct answer

Regulation B generally requires creditors to retain written or recorded information in connection with a commercial credit application for ___________ after the date that the applicant learned of the action taken on the application

a. 12 months

Correct Incorrect Correct answer

b. 3 months

Correct Incorrect Correct answer

c. 24 months

Correct Incorrect Correct answer

d. 5 years

Correct Incorrect Correct answer

When it comes to the Fair Credit Reporting Act (FCRA):

a. The FCRA is not applicable to commercial loans in any manner

Correct Incorrect Correct answer

b. Permissible purpose is not required for consumer reports for commercial loans

Correct Incorrect Correct answer

c. The FCRA is applicable to consumer reports for commercial loans but only to primary borrowers for a commercial loan, not guarantors.

Correct Incorrect Correct answer

d. The FCRA is applicable to consumer reports for commercial loans to all individuals who are personally liable on commercial credit.

Correct Incorrect Correct answer

The Flood Disaster Protection Act (FDPA):

a. Requires all contents of a commercial structure to be insured, including the commercial structure itself, since the commercial structure and its contents are so inherently intertwined.

Correct Incorrect Correct answer

b. Requires all contents of a commercial structure to be insured regardless of whether the commercial structure in which the contents are in is securing the loan.

Correct Incorrect Correct answer

c. All of the above

Correct Incorrect Correct answer

d. None of the above.

Correct Incorrect Correct answer

For a bank’s Customer Identification Program (CIP), since a customer is a “person”, banks are not required to have a CIP as it is solely the bank’s discretion to have such a program in place:

a. True

Correct Incorrect Correct answer

b. False

Correct Incorrect Correct answer

Regulation E protections apply to commercial account holders.

a. True

Correct Incorrect Correct answer

b. False

Correct Incorrect Correct answer

The current Beneficial Ownership requirements for financial institutions can apply to:

a. Limited Liability Corporations, Limited Liability Partnerships, sole proprietorships, s-corps and c-corps

Correct Incorrect Correct answer

b. Limited Liability Corporations, Limited Liability Partnerships, sole proprietorships, s-corps, c-corps, and unincorporated associations

Correct Incorrect Correct answer

c. Limited Liability Corporations, Limited Liability Partnerships, s-corps, and c-corps

Correct Incorrect Correct answer

d. Beneficial ownership does not apply to commercial credit

Correct Incorrect Correct answer

Generally, the provisions of Regulation B do not apply to commercial credit.

True

Correct Incorrect Correct answer

False

Correct Incorrect Correct answer

Quiz for Commercial Lending and Compliance Expectations

Quiz Summary

Information

Results

Results

Categories

1. Question

2. Question

3. Question

4. Question

5. Question

6. Question

7. Question

8. Question

9. Question

10. Question

Our Story

Our Services

Tools

Laws & Regulations

Media Center