Legislation was recently enacted to reform consumer real estate protection laws, and the bank will now have to change the way it documents, discloses, and advertises real estate loans, an integral product line at your bank. What should the compliance professional do FIRST to implement the new law within the bank?
Click on the arrows to vote for the correct answer
A. B. C. D.B
As a compliance professional, the first step to implement the new law within the bank would be to read the law thoroughly and gain a comprehensive understanding of its requirements. This will enable the compliance professional to identify the specific changes required in the bank's documentation, disclosure, and advertising practices for real estate loans.
Option A, "Read the law and write a new real estate compliance policy," is the correct answer because it addresses the essential first step in implementing the new law. The compliance professional must first understand the new law's requirements before creating a new policy that incorporates the changes. The new policy should cover all aspects of the bank's real estate loan operations, including documentation, disclosures, advertising, and any other areas affected by the new law.
Option B, "Form a task force of the business unit managers whose departments will be affected by the law to collectively form an action plan," may be useful in later stages of implementation, but it is not the first step. A task force can help identify potential issues and formulate strategies for addressing them, but it requires a clear understanding of the new law's requirements before it can be effective.
Option C, "Talk to the bank president about the need for more resources in compliance," is not the first step in implementing the new law. While it is essential to have adequate resources to implement compliance requirements, it is not the first step. Moreover, this option assumes that the compliance professional has already identified resource constraints, which may not be the case.
Option D, "Sign up all bank personnel affected by the changes for a seminar on the new law," is also not the first step. While training is essential, it is not the first step. Before training can be effective, the compliance professional must understand the new law's requirements and create a new policy that incorporates the changes.
In summary, the compliance professional should first read the law and write a new real estate compliance policy that incorporates the changes required by the new law. This will lay the groundwork for effective implementation of the new requirements and enable the compliance professional to identify any additional resources or training that may be required.