Consultation Policy Flashcards
What are the four categories of consultations?
Informal Consultation
Formal Consultation
Enforcement Consultation
and 10(c) Investigations
What is the purpose of an informal consultation?
Obtain a “second opinion” on if a matter rises to the level of supervisory concern or request assistance from Exam Analytics.
In what instances would you seek an informal consultation? (4)
-seek WO input on if matter requires a formal consultation
-issue is new to the Region or has a new fact pattern where RO seeks perspective from WO
-Exam Analytics needed
-Any other topic where RO needs guidance or direction
What types of Exam Analytics may be needed in an informal consultation? (5)
-Raw disparity analysis
-Statistical Analysis, Prepare for criteria interview, develop data collection spreadsheet, interpret research findings
-REMA Analysis for redlining risk
-identify appropriate analytic methods
-assist in calculating restitution
What must be included when the RO submits a consultation?
A recommendation on the proposed outcome for WO concurrence.
What must the EIC or RO complete for a consultation?
The consultation template, or for FL consultations the FLSC.
Sufficient information should be included in SOURCE related to the request.
True or False: If a legal opinion is necessary a formal consultation should be initiated.
True.
True or false: Informal consultations for exam analytics involving multiple data/statistical requests can be opened as a single consultation.
False: Each data/statistical request should be opened as a separate consultation unless the matter involves a fair lending visitation.
When should informal consultations be closed regarding regression and redlining analysis?
after analysis is completed and once the RO decides if a 15-day letter is necessary.
When should informal consultations be closed regarding disparity analysis?
After the RO and the exam analyst confer on the decision to move forward or no longer pursue the matter. The decision should be documented in SOURCE.
When can a concern be raised regarding the proposed outcome of an informal consultation?
Within three business days of notice of a proposed outcome.
True or False: The RO can pursue a different outcome than that set forth in SOURCE by the WO?
True - The RO must obtain prior approval of such an action from the Senior Deputy Director.
What is the general timing for an informal consultation?
Usually a couple of weeks, but rarely longer than 30 calendar days. the RO will notify if any consultations are open longer than 21 calendar days.
What is the purpose of a Formal Consultation?
Seek support from the WO on matters that are typically complex, significant, or sensitive to the agency or industry.
Name 5 situations when a formal consultation is necessary?
-Issue requires consideration by the FDIC Board or Division Director. (matters that change Corp Policy, could attract attention, issues of first impression)
-involve citing a violation that will likely result in enforcement action requiring approval from Case Review Committee (Orders for restitution, orders for CMPs besides flood, Consent Orders)
-violations with likely restitution of $1MM or more
-where the RO does not have authority to act on applications (de novo apps requiring Board approval, Covered filings)
-involve non-routine UDAP
-involve entity that received approval from the CFPB in connection with innovative policies (Granted no-action letter, CAST template)
-violation requiring significant change to bank business strategy
-FL focal point is complex and requires visitation
-Potential agency DOJ HUD FL referral (FL-FDL anticipated)
-determine if org qualifies as a mutual aid society
-decisions on apps where CRA protest was received
-involve request to disclose information maintained by FDIC
What are examples of situations where an issue may require consideration by the Board of Directors of FDIC?
-There is no previous legal opinion to address issue
-RO is applying regulation in different manner than FDIC has done previously
-FDIC setting precedent by citing or not citing an issue
-Involves an innovative or complex product, service, technology, or business practice that has industry wide implications.
For formal consultations requiring legal, who should the RO consult prior to initiating a formal consult with WO?
The Regional Counsel
What are examples of significant changes to a bank’s business strategy as a result of a violation? (4)
-Stop offering product/service as result of violation
-Bank significantly changes how product/service is offered BC of violation
-changes result in significant income/expense changes to bank
-bank would need new or different knowledge, skills, or abilities to implement new strategy or achieve goals.
In what situations must a legal opinion be obtained? (3)
-Issues that could establish or change policy, attract attention or publicity, involve interpretation of law, is an issue of “first impression”
-Citing a violation that will result in enforcement action requiring approval from CRC or DCP director
-determination of a pattern and practice in FL violation that would require referral to DOJ or HUD.
In what situations might there be a legal written concurrence?
-existing legal option available that WO concurs with findings and applicability to current consultation
-Bank does not contest violation/agrees to take corrective action
-consultation involves referral and WO concurs that DCP is legally authorized to make the referral.
True or false: A legal opinion is not required to send a FL-FDL.
True: not required, but DCP may choose to request one.
What is the timing of a formal consultation?
Formal consultations will usually conclude within 30-60 calendar days; rarely longer than 90 calendar days. The WO Specialist will notify WO management of any consultation opened more than 45 calendar days.
What type of consultation is issued for a Fair Lending Visitation?
A formal consultation once the criteria interview has been scheduled.
The consultation should include the Chief of Exam Analytics and the Associate Director.
Who typically leads a FL visitation consultation?
The FLEX or Exam Specialist
