Certified Regulatory Compliance Manager (CRCM) — Question 88

The federal banking agencies have proposed an amendment to Regulation Z that would require a new early disclosure statement for loans secured by the borrower's principal dwelling. After reading the proposed change, what should the compliance professional do FIRST?

Answer options

• A. Establish a task force to study the proposed rule.
• B. Contact the bank's platform software vendor to determine whether it will be ready for the change NOTES
• C. Prepare a summary document that outlines the effects the proposed rule would have on the bank's operations
• D. Train bank staff on the new rule

Correct answer: C

Explanation

The correct answer is C because preparing a summary document helps the compliance professional understand and communicate the implications of the proposed rule on bank operations. Establishing a task force (A) or contacting the vendor (B) may be necessary later but should not be the first step. Training staff (D) is also important but comes after understanding the changes that need to be implemented.