Examples of unfair practices mentioned in guidelines against Predatory and Abusive Lending includes loan flipping and loan equity stripping. It is said that:

A. Loan flipping may be unfair because it increases the chances of foreclosure by decreasing home equity and increasing debt burden

B. Equity stripping is the practice of making loans secured by the consumer's home but with high, up-front fees that are financed and secured by the home

C. Loan flipping is the practice of making loans secured by the consumer's home but with high, up-front fees that are financed and secured by the home

D. Equity stripping may be unfair because it increases the chances of foreclosure by decreasing home equity and increasing debt burden

Generally, a financial institution is required to ascertain if securities certificates they have taken by pledge, transfer, or otherwise have been reported as missing, lost, counterfeit, or stolen. When is it NOT required to take such actions?

A. When the securities certificate is received directly from the issuer or issuing agent at issuance.

B. When the bank officer personally knows the individual pledging the certificate.

C. When the securities certificate received as part of a transaction has a face value of $20,000 or less.

D. When the securities certificate is received directly from an insured delivery service.

First National Bank is a municipal securities dealer. Its municipal securities department is supervised by Mary Watkins, a municipal securities principal. The department has five other employees, including two municipal securities representatives. Martin Wells, a commercial loan customer of the bank, tells Ms. Watkins he wants to invest in municipal securities and asks for her help. Mr. Wells has never dealt with the municipal securities department of the bank and has never purchased municipal securities. He wants to purchase the securities today.

What should Ms. Watkins do?

A. Determine what he would like to buy and help him buy it

B. Help him make the purchase only if she can be assured the transaction meets the MSRB suitability requirements

C. Help him make the purchase but avoid making any recommendations or comments about the advisability of the transaction

D. Refer him to a municipal securities representative

The OCC has determined that a national bank may not assume that, simply because a consumer's PIN or ATM card was used in a transaction, that transaction is authorized. Banks are required to take reasonable steps to determine whether the transaction was authorized. Such steps might include the bank's review of:

A. Documentation or written, signed statements provided by the consumer

B. Historical information on the customer's pattern of use (such as time, location, types of transactions, and so on)

C. Problems reported by regular customers regarding the access device or ATM

D. Legal reports

To stop a payment of a preauthorized transfer, consumer must notify the institution or in writing at least:

A. Three days before the transfer is to occur

B. Within 14 days of oral notice

C. Binding after 14 days if no written confirmation is received

D. None of these