Certified Regulatory Compliance Manager (CRCM) — Question 85

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?

Answer options

• A. Read the law and write a new real estate compliance policy
• B. Form a task force of the business unit managers whose departments will be affected by the law to collectively form an action plan
• C. Talk to the bank president about the need for more resources in compliance
• D. Sign up all bank personnel affected by the changes for a seminar on the new law

Correct answer: B

Explanation

The correct answer is B because forming a task force with managers from affected departments ensures that all aspects of the new law are considered and that there is a collective approach to creating an action plan. Option A, while important, should come after gathering input from those directly affected. Option C is premature as it does not address immediate compliance needs, and Option D focuses on training rather than on the critical initial planning and strategy formulation required to comply with the new law.