Compliance Risk Management

8問 • 4ヶ月前

問題一覧

1. Legislation was recently enacted to reform consumer real estate protection laws, and the institution will now have to change the way it documents, discloses, and advertises real estate loans, an integral product line at your financial institution. What should the compliance professional do FIRST to implement the new law within the financial institution? a. Read the law and write a new real estate compliance policy b. Form a task force of the business unit managers whose departments will be affected by the law to collectively form an action plan c. Talk to the institution’s president about the need for more resources in compliance d. Sign up all personnel affected by the changes for a seminar on the new law

2. A financial institution’s president would like to begin offering a new home equity line of credit product within two weeks. In all cases the borrower’s principal dwelling will secure the loan. The president has already launched a planned advertising campaign for the institution’s major service markets. What should the compliance professional do FIRST? a. Hire an attorney to write the appropriate legal documents and disclosures b. Write a memo to the president explaining why the compliance professional should have been in on the process at an earlier date c. Begin training sessions for the lending and loan operations staff on the compliance issues involved d. Perform a risk assessment to determine the institution’s level of risk in offering this new product

3. A financial institution has a large mortgage department as well as a high HMDA error rate. An expensive software program could automate the process, but the business unit manager does not want to purchase the software because of its expense. Though it is not as efficient, the manager prefers to make some improvements to the manual process, add some more robust monitoring procedures, and opt not to purchase the software. What should the compliance professional do? a. Elevate the issue to a higher authority to force the mortgage department unit to purchase the software b. Nothing; the compliance professional’s job is done with the completed research c. Document the fact that the level of risk present with manual systems is acceptable to the mortgage department business unit d. Write a memo to the president of the financial institution that explains the risk assessment for this area

4. The federal banking agencies have proposed an amendment to Regulation Z that would require a new early disclosure statement for loans secured by the borrower’s principal dwelling. After reading the proposed change, what should the compliance professional do FIRST? a. Establish a task force to study the proposed rule. b. Contact the institution’s platform software vendor to determine whether it will be ready for the change c. Prepare a summary document that outlines the effects the proposed rule would have on the institution’s operations d. Train staff on the new rule

5. During a recent compliance examination, regulatory examiners found that the financial institution was not conducting flood hazard area determinations before closing on construction loans. The compliance professional has reviewed the files and agreed with the examiners’ finding. What should be done FIRST? a. Review the institution’s flood policies and procedures to determine where the compliance failure occurred b. Conduct a risk assessment of the flood determination requirement on construction loans c. Prepare an analysis for management explaining the requirement d. Review all construction loan files to determine the extent of the problem

6. During a recent compliance examination, regulators cited the financial institution for violations of various marketing regulations. How should the compliance professional FIRST respond? a. Contact the institution’s marketing manager to discuss the finding b. Develop a policy requiring that all marketing materials be reviewed and approved by compliance before being published c. Set up a training class for the marketing department d. Review the marketing materials and applicable regulations to verify the finding

7. When developing a training plan for commercial lenders, which of the following regulations is least important to include? a. Equal Credit Opportunity, CFPB Regulation B b. Home Mortgage Disclosure, CFPB Regulation C c. Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks, FRS Regulation O d. Truth in Lending Act, CFPB Regulation Z

8. A compliance professional is a member of the task force studying how the financial institution can reduce consumer complaints about holding deposits. One proposed solution involves purchasing an expensive system that will reduce the number of holds placed by evaluating the customer’s history and relationship with the institution. Which of the following roles is MOST important for the compliance professional on the task force? a. Developing training for tellers who will use the new system b. Setting parameters for what the system should review to determine the strength of the customer relationship c. Validating the system to ensure it complies with regulatory restrictions d. Conducting a cost-benefit analysis to determine if the system is the best solution

Truth in Lending

ユーザ名非公開 · 36問 · 4ヶ月前

Truth in Lending