Of the following loans made by a national bank, which loan is NOT covered by the OCC ARM regulation?
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A. B. C. D.C
The OCC (Office of the Comptroller of the Currency) ARM (Adjustable Rate Mortgage) regulation applies to certain loans made by national banks that have an adjustable interest rate. The purpose of this regulation is to protect consumers by ensuring that national banks follow certain guidelines when offering adjustable rate mortgage loans.
Out of the four loans listed, Loan B is not covered by the OCC ARM regulation. This is because the loan is made to purchase a mobile home to be used as rental property, which means that it is not a loan for a single-family dwelling to be used as a residence. Additionally, the loan is secured by the home, not the land on which it sits, and has a variable interest rate.
Loan A is covered by the OCC ARM regulation because it is a loan to purchase a single-family dwelling to be used as a residence, secured by the dwelling with an adjustable interest rate.
Loan C is also covered by the OCC ARM regulation because it is a loan made to purchase an eight-unit apartment complex, secured by the building, made payable on demand with a variable rate of interest.
Loan D is covered by the OCC ARM regulation because it is a loan made to purchase a duplex, secured by the dwelling, amortized over 15 years with a 5-year maturity, at a variable rate of interest.
In summary, out of the four loans listed, only Loan B is not covered by the OCC ARM regulation, as it is a loan made to purchase a mobile home to be used as rental property, secured by the home with a variable interest rate.