Investigations
Consumer Complaints
Consumer complaint investigations are generally handled by Consumer Response Unit staff. Examiners will be requested to assist if deemed necessary. As with all sensitive matters, close cooperation between staff in the field office, region, and Washington is essential to a prompt and appropriate resolution of a complaint.
Enforcement Actions
To obtain information or evidence necessary to support an enforcement action, a formal investigation may be conducted pursuant to Section 10(c) of the FDI Act. Through such an investigation, administrative subpoenas may be issued for information or testimony. Orders of Investigation must be developed in cooperation with the Legal Division, which shares delegated authority for this process.
Visitations
Introduction
Visitations are usually targeted events aimed at specific operational or regulatory areas, but can also focus on compliance management systems that require more than the normal level of supervisory attention. Visitations are conducted by the FDIC to review the compliance posture of an institution that is newly chartered, involved in a recent or proposed merger, or recently converted to state nonmember status; to review an institution’s progress on corrective actions since its last examination; to ascertain an institution’s compliance with an enforcement action; and to investigate problems brought to the FDIC’s attention.
Conducting a Visitation
Visitations can be scheduled at any time at the discretion of Regional Office management.
Visitations may be expanded to a regular consumer compliance/CRA examination with the Examiner-in-Charge’s recommendation and Regional Office management’s concurrence. This recommendation should be considered in situations where:
- Significant deficiencies are noted in a financial institution’s compliance management system or CRA policies or procedures;
- Significant noncompliance is noted particularly regarding previously criticized areas; or
- Significant noncompliance with an informal or formal enforcement action is noted.
Regional Office management may change an institution’s compliance rating if interim events, visitations, investigations, or similar situations result in finding that the assigned rating is no longer suitable and that a different level of supervisory concern is warranted. Ratings may be moved up or down. Decisions to change a rating must be based on a review that considers whether the institution’s compliance with consumer protection and civil rights statutes and regulations display weaknesses requiring special supervisory attention and which are cause for more than a normal degree of supervisory concern. Any change must be carefully documented, and the bank should be notified of the change and the basis for it.
General Visitation Procedures
- Perform appropriate review and analysis procedures prior to the commencement of the visitation. Review should include documents in electronic storage facilities that have been received from the bank since the previous examination activity, such as progress reports. Tailor the visitation to address the compliance deficiencies or concerns identified, or the matters under review. An Assessment of Risk and Consumer Harm (ARCH) is not required.
- Notify the institution of the date of the visitation.
- Conduct the visitation. An initial meeting with management should define the scope of the visitation.
- If applicable, prepare a list of violations. Examiners will use the violations pages from the Report of Examination and include these pages with the Report of Visitation submitted to the Regional Office.
- Consult as appropriate or required.
- Conduct a closing meeting with management and, if the situation warrants, a meeting with the Board. Leave a copy of the violations list with management.
Preparing the Report of Visitation
- Prepare Report of Visitation (Compliance) using the Report of Visitation Cover and Report of Visitation template. Additional pages may include, as applicable:
- Matters Requiring Board Attention
- Compliance with Enforcement Actions
- The financial institution must receive, either in the Report of Visitation, Report of Examination, or both, a discussion of compliance with the provisions of an outstanding enforcement action.
- Level 3/High Severity Violations
- Level 2/Medium Severity Violations
- Level 1/Low Severity Violations
- The Level 1 Violations page is left with management at the conclusion of the exit meeting but is not included or discussed in the Report of Visitation.
- Other Matters
- Compliance - Supervisory Section
- Include recommendation to the Regional Office on whether to remove or retain reporting requirements contained within outstanding formal or informal enforcement actions (if not included on the report).
- Forward the Report of Visitation to the review staff designated by Regional Office management.
- Update all appropriate FOCUS data fields and ensure that all FOCUS submission requirements are met.
- Regional review staff will review the Report of Visitation. At the discretion of the Regional Office management, visitation findings will be forwarded to the financial institution by either of the following:
- Transmittal letter only; or
- Transmittal letter and Report of Visitation.
Documenting Visitation Findings
Standardized workpapers must be completed for applicable areas reviewed during each visitation.