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?
When new legislation is enacted, the first step for a compliance professional should be to read and understand the law thoroughly. This allows them to accurately identify the specific changes and requirements that must be implemented. Once the law is fully understood, the compliance professional can then draft a new real estate compliance policy that aligns with the requirements of the new legislation. Forming a task force, discussing resources with the bank president, and training staff are important subsequent steps, but they should follow after the foundational understanding and policy creation based on the new law.
B, page 6.
Option A, "Read the law and write a new real estate compliance policy," represents this initial, critical step. By first reading and understanding the law, the compliance professional can identify the specific changes needed in the bank's procedures, documentation, disclosures, and advertising practices related to real estate loans. This understanding forms the basis for drafting a new compliance policy that aligns with the law's requirements. While the other options are also important components of a comprehensive strategy to comply with the new law, they are subsequent steps that should follow after gaining a thorough understanding of the law itself. Therefore, the correct answer is: A. Read the law and write a new real estate compliance policy.