A Bank Has a Large Mortgage Department as Well as a High

question 358

Multiple Choice

A bank has a large mortgage department as well as a high HMDA error rate. An expensive software program could automate the process, but the business unit manager does not want to purchase the software because of its expense. Though it is not as efficient, the manager prefers to make some improvements to the manual process, add some more robust monitoring procedures, and opt not to purchase the software. What should the compliance professional do?

• A) Elevate the issue to a higher authority to force the mortgage department unit to purchase the software
• B) Nothing; the compliance professional's job is done with the completed research
• C) Document the fact that the level of risk present with manual systems is acceptable to the mortgage department business unit
• D) Write a memo to the president of the bank that explains the risk assessment for this area

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Definitions:

Gallons

Gallons are a unit of volume used primarily in the United States to measure liquids and gases, equivalent to 3.785 liters.

Infiltration Capacity

The maximum rate at which soil can absorb water, affected by factors such as soil composition, moisture content, and vegetation cover.

Vegetative Cover

Plants and trees that cover the ground, reducing soil erosion and influencing the local climate.

Rainfall Intensity

The rate at which rain falls over a given area, measured in millimeters per hour or inches per hour.