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?
The first step for a compliance professional, after reading the proposed change, should be to establish a task force to study the proposed rule. This approach ensures a comprehensive evaluation by involving multiple perspectives and expertise, which is essential for understanding the full implications of the proposed rule. Once the task force has conducted a thorough study, the bank can proceed with other actions such as preparing summary documents, contacting vendors, or training staff with a well-informed understanding.
C. Prepare a summary document that outlines the effects the proposed rule would have on the bank's operations. Before taking any further action, the compliance professional should thoroughly understand the implications of the proposed rule change on the bank's operations. By preparing a summary document, the compliance professional can help the bank's management team and other relevant stakeholders grasp the potential impact of the regulation. This understanding is crucial for making informed decisions about how to proceed, including whether to establish a task force, contact vendors, or initiate staff training.