Consultation Policy_AC Flashcards
CONSULTATION POLICY (from manual- Review and Analysis)
When should examiners or staff consult with regional or field office management?
If they find an unusual issue or problem
When should you and regional office or management staff consult with Washington SMEs? (3)
When findings, issues, or potential violations require guidance with respect to new regulations, or involve emerging/sensitive policy concerns.
Areas with high sensitivity/potential impact.
Actions that require approval or concurrence under delegated authority or DCP policy
What should be done if an examiner’s recommendation is inconsistent with the outcome from a consultation?
Examiner and review examiner ensure language in the ROE is consistent with the final outcome.
II. DCP Consultation Process Procedures
N/A
What are the four categories of the consultation process?
- Informal Consultation
- Formal Consultation
- Enforcement Consultation
- 10(c) Investigations
Section I. INFORMAL CONSULTATIONS
N/A
T or F:
Informal consults are at the discretion of the Region.
TRUE
What is the purpose of an informal consult?
Obtain a “second opinion” on
whether a matter rises to the level of a supervisory concern or to request assistance from Examination Analytics,
In what instances would you seek an informal consultation? (4)
- To seek WO input on if matter requires a formal consultation
- Issue is new to the Region or where the Region has encountered a similar practice with a different fact pattern from previous determinations and seeks perspective from WO
- Support from Exam Analytics is needed
-Any other topic where RO needs guidance or direction
When would we need support from Exam Analytics (5)?
o conduct a raw disparity analysis; or
o conduct statistical analysis, prepare for a criteria interview, develop a data
collection spreadsheet, and interpret research findings, or
o conduct analysis to confirm an examiner’s determination of a REMA in a redlining analysis, or
o identify appropriate analytic methods (e.g., statistical analysis)
o assist in calculating restitution.
What must be included when the RO submits a consultation (except in cases where request assistance from Exam Analytics)
Make a recommendation, as part of the RO’s consultation request, on the proposed
outcome for WO concurrence.
When WO expertise is sought, what must the EIC or RO representative complete for an informal consult?
What about a FL informal consult?
The applicable Consultation Template- submit to RO
Or the FLSC for FL consults
T or F:
The Consultation Template should detail the relevant documents in SOURCE to be referenced in making a determination regarding the consultation,
as well as the name of the RO Legal representative who has been consulted on the matter, if applicable.
TRUE
T or F:
A formal legal opinion or written concurrence will not be required unless requested by the RO representative and/or WO Specialist
TRUE
T or F:
If a formal legal opinion is determined to be necessary, a formal consultation should be initiated.
TRUE
If a consult is solely for support from Exam Analytics, who requests that a rep from Exam Analytics be assigned to the consult?
WO Specialist
T or F:
Unless the matter involves a FL visitation, informal consults for the support from Exam Analytics involving multiple data/statistical requests (such as raw disparity analysis requests, criteria
interview requests, requests to assist with creating data spreadsheets/instructions and restitution calculation) 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 these informal consults be closed?
What is the exception for raw disparity consults?
After Examination Analytics has completed the request
EXCEPT that for a raw disparity consultation, the WO Specialist, Examination Analytics
analyst and RO representative should confer on the decision to move forward or no longer pursue the matter. Decision should be documented in SOURCE.
When should informal consults with Exam Analytics involving regression and redlining analyst requests be closed?
After analysis is completed and once the RO decides whether a a 15-day letter (FL-FDL) is necessary.
For consultations where Examination Analytics is asked to provide assistance on identifying methods for calculating consumer harm or assisting in the calculation of restitution, what do Exam Analytics do?
Conduct the analysis and prepare a written memo describing the findings; provide the memo to the RO rep and WO Specialist
Who is responsible for keeping the EIC and field management informed on the status of the consultation?
RO rep
Who is responsible for maintaining
communication with bank management during the consultation process?
The EIC
If WO Legal, Examination Analytics, or Policy participants have been involved in
the consultation, who is responsible for notifying the participants of the proposed outcome prior to finalizing and communicating the decision in order to enable further consideration if the participants raise concern?
The RO Specialist
When should concerns be raised regarding the proposed outcome of an informal consultation?
ASAP and within 3 business days of notice of the a proposed outcome
Who is responsible for closing the informal consultation by documenting the
outcome in SOURCE, as well as the Consultation Template (unless FL matter where template not used)?
The WO Specialist
What should the outcome include?
Concurrence/non-concurrence with the RO’s recommended course of action along with the basis of the decision
T or F:
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 action from the Senior Deputy Director
What is the general timing for an informal consultation with the WO?
Should conclude within a couple of weeks;
rarely longer than 30 calendar days.
RO representatives will notify the RO management of any consultations opened more than 21 calendar days.
Section II. FORMAL CONSULTATIONS
N/A
T or F:
Formal consultations require consultation with the WO.
TRUE
What is the purpose of a formal consult?
To seek support from the WO on certain
matters that arise in supervision.
Typically matters that are complex, significant, or sensitive to the agency and/or industry.
T or F:
The RO should review the merits of the matter and make a recommendation on the proposed outcome, as part of the RO’s consultation request, for WO concurrence.
TRUE
Name 5 situations when a formal consultation is required?
- Matters that may require consideration by the FDIC Board or Division Director (matters that establish/change Corp Policy, could attract unusual attention/publicity, issues of first impression)
-involve citing a violation that will likely result in enforcement action requiring approval from Case Review Committee or Division Director (Orders for restitution, orders for CMPs besides flood, Consent Orders)
-violations with likely restitution of $1 million or more
-where the RO does not have authority to act on applications (de novo apps requiring Board approval, Covered filings)
-involve non-typical, non-routine UDAP
-involve institution, or entity that engages with the bank, that received approval from the CFPB in connection with innovative policies for a particular product or service relevant to the FDIC’s review (such as CFPB granting no-action letter, Compliance Assistance Statement of Terms Template (CAST) template)
-violation that will likely result in significant change to bank business strategy
-FL focal point is complex and being pursued through a FL visitation, SEPERATE from the exam
- FL cases with potential violations that would require referral to DOJ (FL-FDL-15 day letter anticipated)
- potential violation that would require referral to another agency for potential investigation or enforcement and which the regions do not have the authority to refer directly;
-determine if org qualifies as a mutual aid society
-decisions on applications where CRA protest was received
-involve Part 309 requests to disclose information maintained by FDIC
