FDIC updates consumer compliance exam manual

Six chapters of the Federal Deposit Insurance Corp. (FDIC) consumer compliance examination manual (CEM) – focusing on how examiners communicate their findings, on enforcement actions, and more – were updated in December, the agency said Thursday.

The CEM is for FDIC examination staff that conduct consumer compliance examinations, Community Reinvestment Act performance evaluations, and other supervisory activities. It includes supervisory policies and examination procedures for evaluating financial institutions’ compliance with federal consumer protection laws and regulations. The manual – intended to promote consistency and efficiency in the exam process and compliance with applicable laws and regulations – can be used by financial institutions to learn more about the FDIC’s examination process.

The CEM sections updated in December are:

  • Communicating Findings (II-6.1): This chapter was revised to provide additional guidance in the format of the Report of Examination, including where and how to address significant findings (e.g., Third-Party Oversight, Fair Lending, etc.) as well as enforcement actions (proposed and outstanding) and corresponding provisions.
  • Investigations and Visitations (II-8.1): This chapter was updated to provide additional guidance on the structure of the Report of Visitation
  • Enforcement Actions (II-9.1): Factor 10 within the CMP Matrix was updated to reflect revisions to the Uniform Interagency Consumer Compliance Rating System.
  • Bank of Anytown (III 2.1): The Bank of Anytown was revised to ensure consistency with recent directives related to the compliance rating system and the role of supervisory guidance, and examination procedures.
  • Determining Whether TIL Restitution is Required (V-2.1): The TIL Restitution portion of the manual was revised to update the processing timelines for bank applications of relief from Regulation Z restitution
  • Federal Trade Commission Act (VII-1.1): This section of the manual was revised to reflect changes in the consultation process, provide additional items that may assist in the analysis, and remove links and references to other supervisory agencies, except the FTC, in the List of Resources section.

FDIC Consumer Compliance Examination Manual