Practice Test Geeks(CFE) Certified Financial Examiner Practice Test
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CFE Consumer Protection & Lending Compliance Flashcards

6 cards from real CFE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 CFE Consumer Protection & Lending Compliance flashcards as text

  1. Which federal agency is primarily responsible for enforcing consumer financial protection laws at large banks?

    Answer: Consumer Financial Protection Bureau (CFPB)

    The CFPB, created by the Dodd-Frank Act, has primary supervisory and enforcement authority over consumer financial protection laws at large financial institutions.

  2. The Fair Credit Reporting Act (FCRA) gives consumers the right to:

    Answer: Access a free credit report annually from each major bureau

    FCRA entitles consumers to one free credit report per year from each of the three major credit bureaus (Equifax, Experian, TransUnion) through AnnualCreditReport.com.

  3. What does 'Regulation E' primarily govern?

    Answer: Electronic fund transfers and consumer debit card transactions

    Regulation E implements the Electronic Fund Transfer Act and establishes consumer rights and bank obligations related to electronic transfers, ATMs, and debit cards.

  4. Under the Home Mortgage Disclosure Act (HMDA), financial institutions must collect and report data primarily to:

    Answer: Detect and deter discriminatory lending patterns

    HMDA requires institutions to collect and disclose mortgage application data to help regulators and the public identify discriminatory lending patterns and ensure fair lending.

  5. Which lending practice involves repeatedly refinancing a loan to generate fees while providing no net benefit to the borrower?

    Answer: Loan flipping (predatory churning)

    Loan flipping is a predatory practice where lenders repeatedly refinance loans primarily to collect new fees, stripping equity from the borrower without providing genuine benefit.

  6. A financial examiner reviews overdraft fee practices at a bank. Which regulation requires banks to obtain affirmative consent before enrolling customers in overdraft coverage for ATM and one-time debit card transactions?

    Answer: Regulation E (Opt-in Rule)

    The Federal Reserve's amendment to Regulation E requires banks to get opt-in consent from consumers before charging fees for overdraft coverage on ATM and debit card transactions.