The OCC Recommends All but One of the Following Actions

question 219

Multiple Choice

The OCC recommends all but one of the following actions to help prevent a national bank's purchasing or acquiring predatory or abusive loans. Which practice is NOT recommended?

• A) Establish policies on the bank's relationship with third-party brokers and originators
• B) Review loan documentation
• C) Audit the third-party broker
• D) Require the broker to establish a reserve account for legal contingencies

---

Definitions:

Mild Mania

A less severe form of mania characterized by elevated mood, increased activity or energy levels, but not severe enough to cause significant impairment in social or occupational functioning.

Hyperactivity

Excessive movement or activity, often referring to behavioral conditions such as ADHD.

WHO

The World Health Organization, a specialized agency of the United Nations responsible for international public health.

Impulse Control Disorder

A group of psychiatric disorders characterized by the inability to resist urges or impulses that could be harmful to oneself or others.