During a recent compliance examination, regulatory examiners found that the bank 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?

Question

Quizplus · Accepted Answer

The first step should be to review the bank's policies and procedures to determine where the compliance failure occurred. This will help identify any gaps or weaknesses in the bank's process and allow for corrective measures to be taken. Conducting a risk assessment, preparing an analysis, or reviewing all loan files may be necessary, but should be done after the underlying issue has been identified and addressed.

During a Recent Compliance Examination, Regulatory Examiners Found That the Bank