Ace the CRCM Challenge 2025 – Master Compliance Like a Pro!

The correct answer is focused on ensuring regulatory compliance regarding the distribution of Charm Booklets for adjustable-rate mortgages. The requirement is that these booklets must be provided to all applicants at the time an application form is provided. This timing is crucial because it allows applicants to receive necessary information upfront, enabling them to make informed decisions about adjustable-rate products before they formally commit.

Providing the booklets at this stage ensures that applicants have access to critical disclosures about the nature of adjustable-rate mortgages, including potential risks associated with interest rate adjustments. This is an essential aspect of consumer protection within the lending process, as it promotes transparency and informed decision-making.

Other options suggest varying times for providing the booklets, such as at closing or within a specific timeframe after receiving an application. However, these do not meet the regulatory requirements to inform borrowers early in the process, potentially leaving them uninformed about key features of their mortgage product at a crucial decision-making moment. Hence, the selected answer stands out for its alignment with compliance expectations regarding borrower communication and consumer protection standards in the mortgage lending process.