A recent compliance review revealed that several branch officers are using obsolete loan application forms, which do not include disclosures related to credit insurance sales. Which of the following steps should be taken FIRST?

Question

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The first step should be to determine whether the branches use a separate document for required credit insurance sales disclosure. If they do, then the use of obsolete loan application forms may not be a violation. If they do not, then corrective action needs to be taken, and the branches should be instructed to destroy all obsolete forms and use the current versions. Contacting the bank's primary regulator should come after this initial investigation.

A Recent Compliance Review Revealed That Several Branch Officers Are