Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Compliance Part 1: Exam Processes, Report Prep, and CMS_COLOMBO > Consultation Policy_AC > Flashcards

Consultation Policy_AC Flashcards

1
Q

CONSULTATION POLICY (from manual- Review and Analysis)

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

When should examiners or staff consult with regional or field office management?

A

If they find an unusual issue or problem

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

When should you and regional office or management staff consult with Washington SMEs? (3)

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What should be done if an examiner’s recommendation is inconsistent with the outcome from a consultation?

A

Examiner and review examiner ensure language in the ROE is consistent with the final outcome.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

II. DCP Consultation Process Procedures

A

N/A

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the four categories of the consultation process?

A
  • Informal Consultation
  • Formal Consultation
  • Enforcement Consultation
  • 10(c) Investigations
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Section I. INFORMAL CONSULTATIONS

A

N/A

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

T or F:

Informal consults are at the discretion of the Region.

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is the purpose of an informal consult?

A

Obtain a “second opinion” on
whether a matter rises to the level of a supervisory concern or to request assistance from Examination Analytics,

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

In what instances would you seek an informal consultation? (4)

A
  • 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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

When would we need support from Exam Analytics (5)?

A

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.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What must be included when the RO submits a consultation (except in cases where request assistance from Exam Analytics)

A

Make a recommendation, as part of the RO’s consultation request, on the proposed
outcome for WO concurrence.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

When WO expertise is sought, what must the EIC or RO representative complete for an informal consult?

What about a FL informal consult?

A

The applicable Consultation Template- submit to RO

Or the FLSC for FL consults

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

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.

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

T or F:

A formal legal opinion or written concurrence will not be required unless requested by the RO representative and/or WO Specialist

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

T or F:

If a formal legal opinion is determined to be necessary, a formal consultation should be initiated.

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

If a consult is solely for support from Exam Analytics, who requests that a rep from Exam Analytics be assigned to the consult?

A

WO Specialist

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

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.

A

FALSE

Each data/statistical request should be opened as a separate consultation unless the matter involves a fair lending visitation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

When should these informal consults be closed?

What is the exception for raw disparity consults?

A

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.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

When should informal consults with Exam Analytics involving regression and redlining analyst requests be closed?

A

After analysis is completed and once the RO decides whether a a 15-day letter (FL-FDL) is necessary.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

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?

A

Conduct the analysis and prepare a written memo describing the findings; provide the memo to the RO rep and WO Specialist

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Who is responsible for keeping the EIC and field management informed on the status of the consultation?

A

RO rep

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Who is responsible for maintaining
communication with bank management during the consultation process?

A

The EIC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

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?

A

The RO Specialist

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
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
26
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
27
What should the outcome include?
Concurrence/non-concurrence with the RO’s recommended course of action along with the basis of the decision
28
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
29
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.
30
Section II. FORMAL CONSULTATIONS
N/A
31
T or F: Formal consultations require consultation with the WO.
TRUE
32
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.
33
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
34
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
35
What are examples of situations where an issue may require consideration by the Board of Directors of FDIC (4)?
-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 raises supervisory concerns or has the potential for industry wide implications.
36
What are examples of significant changes to a bank's business strategy as a result of a violation? (4)
- Bank stops offering product/service as result of violation - Bank significantly changes how product/service is offered because 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.
37
For formal consultations requiring legal input, who should the RO consult prior to initiating a formal consult with WO?
The Regional Counsel
38
What must be completed for formal consults?
EIC or RO Rep will complete the applicable Consultation Template (or the FSLC for FL matters)
39
T or F: Except for FL-FDLs that are issued in connection with a Fair Lending Visitation (and thus a formal consultation is already open), a formal consultation should be initiated for any fair lending matter at the time a FL-FDL is anticipated.
TRUE
40
Who initiates the consult in SOURCE? (for informal and formal)
RO Rep (i.e. RE or applicable Specialist) initiates the consult with the Associate Director in SOURCE after conferring with regional management
41
Who has the primary responsibility for determining if the RO’s recommendation is consistent with FDIC policy?
The WO Specialist
42
Who is responsible for overseeing the consultation process through to a decision? This includes maintaining updated information as to the consultation’s status.
The WO Specialist
43
Who is responsible for notifying WO Legal, Examination Analytics, or Policy participants involved in the consultation of the proposed outcome prior to finalizing and communicating the decision in order to enable further consideration if participants raise concerns?
The WO Specialist
44
When should concerns should be raised?
ASAP & within five business days of notice of a proposed outcome.
45
Who is responsible for closing the consultation by documenting the outcome (concurrence/non-concurrence with the RO’s recommended course of action along with the basis of the decision) in SOURCE, as well as the Consultation Template (unless it is a fair lending matter where a template is not used)?
The WO Specialist
46
T or F: If the RO intends to pursue a different outcome than that set forth in SOURCE (i.e., intends to cite a different violation than that set forth in SOURCE, or wishes to not cite a violation even though the SOURCE comments indicate a violation would be cited), the RO must obtain prior approval of such action from the Senior Deputy Director.
TRUE
47
In what situations must a legal opinion be obtained? (3)
- Matters that could establish or change policy, attract unusual attention or publicity, involve a novel interpretation of law or an issue of "first impression -Citing a violation that will result in enforcement action requiring approval from CRC or DCP Director through streamlined process -determination of a pattern and practice in FL violation that would require referral to DOJ or notification to HUD.
48
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 or notification to another agency and WO Legal concurs that DCP is legally authorized to make the referral or provide notification
49
T or F: A legal opinion is not required to send a FL-FDL (FL fifteen-day letter).
TRUE; not required, but DCP may choose to request one based on the facts and circumstances of the issue.
50
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.
51
FL VISITATIONS
N/A
52
What type of consultation is issued for a Fair Lending Visitation?
FORMAL CONSULT
53
When should a formal consult in connection with a FL Visitation be initiated?
Once it is determined that the RO will pursue a fair lending visitation and a criteria interview has been scheduled
54
Who should the formal consult in connection with the FL visit be initiated with?
Chief of Exam Analytics; the Associate Director should be copied on such consultation to ensure an Examination Analytics analyst and WO Specialist are assigned.
55
Who typically leads the consult?
The Regional Fair Lending Examination Specialist (FLEX)/Examination Specialist (ES)
56
What is the timing for a Fair Lending Visitation?
Not subject to the 30-60 calendar day timing requirements for formal consults; consult remains open until a final decision is made to refer the matter to the DOJ or to not pursue a violation However, matters should be solved ASAP.
57
Section III. ENFORCEMENT CONSULTATIONS
N/A
58
Section III.A. ENFORCEMENT CONSULTS: INFORMAL
N/A
59
When is an informal enforcement consultation required?
When the CMP amount recommended by the CMP matrix differs from the amount the RO intends to pursue and the RO does not intend to initiate a formal enforcement action consultation This includes when the CMP matrix recommends a non-zero dollar amount and the RO does not intend to pursue a CMP.
60
Who initiates an informal enforcement consultation?
RO with the Associate Director (in SOURCE)
61
What is the timing of an informal enforcement consultation?
Usually conclude within 10 calendar days; rarely longer than 14 calendar days. T The WO Specialist will notify WO management of any consultation opened more than 10 calendar days.
62
Section III.B. ENFORCEMENT CONSULTS: Formal
N/A
63
When is a formal enforcement consult required (2)?
When the FDIC intends to pursue ANY formal enforcement action, unless otherwise delegated to the regions (such as Consent Order to address CMS weaknesses only) Or for any Order that was issued by WO but the RO wishes to terminate the order.
64
What is the purpose of formal enforcement consults?
to seek approval to take formal action not otherwise delegated to the regions
65
Many formal enforcement consults require consideration by who (2)?
CRC or Division Director
66
What types of formal enforcement actions require a formal consult (6)?
Restitution orders Removal/prohibition actions Cease & Desist actions against individuals CMPs (except flood) FL referrals to DOJ Notifications to HUD
67
If the matter involves a potential fair lending referral to DOJ, when should a formal enforcement action consult be initiated?
Within 2 business days after the region receives the bank's response to the FL-FDL
68
When must a formal enforcement consultation be submitted for a non-fair lending referral?
Within 1 week of receiving the bank response to the FDL
69
True or False: When submitting a Formal EA consultation a contingency recommendation should be included?
True: DCP should be well prepared should an institution not stipulate to an enforcement action (ex: proposing a 10(c) investigation if settlement negotiations are not successful.) A contingency plan should be formed through the consultation.
70
Who initiates the formal EA?
RO initiates with the Associate Director via SOURCE
71
What is the WO and RO legalytl required to include in the draft for the CRC memo in formal EA consults? (3)
-Legal basis for DCP recommended action -Merits of any legal defenses asserted by the bank -Applicable statues of limitations
72
What are the timing requirements for Formal EA consults?
DCP desires to pursue EA actions within 120 calendar days of issuing written notice of a recommended or proposed formal EA, but if stalled not less than 90 days after initiation WO will elevate matter to ensure timely completion. Termination consultations completed between 30 calendar days.
73
Section IV: Investigative Consultations
N/A
74
What is the purpose of a 10(c) Investigation consultation?
To obtain additional information that is not available from the bank or where facts of the case are in dispute.
75
What are some examples of matters requiring an investigation consultation?
matters requiring an investigation consultation? A -Involvement of third parties where bank does not have info -lack of data to form the facts of the case -need to review info or interview individuals.
76
Who initiates an investigative consult?
RO initiates with the Associate Director (via SOURCE)
77
What are the timing requirements for a 10(c) Investigation consultation?
Consults to open an investigation generally acted upon within 30-60 days
78
OTHER MATTERS
N/A
79
Can WO request additional information from the bank during a consult?
YES but some factors should be considered including: -time/resources needed to collect data -burden on bank -importance of info
80
T or F: The consultation process is generally not designed to identify and pursue additional concerns beyond the matter presented by the RO.
TRUE
81
What should be done if additional CMS concerns are identified during a consultation?
Document in consultation template and inform RO management to determine supervisory strategy to appropriately identify, address, and mitigate risk of consumer harm. ex: expand exam scope, address at future exam/visitation, conduct separate investigation
82
All restitution above $1,000 is recorded/tracked where?
Formal and Informal Action Tracking (FIAT) system.
83
What data should the FIAT track?
amount of restitution, date of payment, and number of consumers.
84
When should the data be recorded?
In the month notification of payment is received and updated on the 8th day of the following month
85
T or F: Restitution that an institution has made as a result of self-identifying an issue in between examinations, and which examiners have deemed sufficient, should not be reported in FIAT.
TRUE
86
Who is responsible for timing and tracking of consultations?
RO for RO consults WO Exams Branch for WO consults

Compliance Part 1: Exam Processes, Report Prep, and CMS_COLOMBO (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions