FDIC TE JF Exam with correct Answers
Part 335 Reporting Thresholds - Answers -Securities Act of 1942
TA > $1M
and 500 shareholders (750 at initiation; 500 ongoing)
What loan problem is this:
Absence sound lending policies, lack of sound credit judgment, lacking margin of
security, insufficient owner equity - Answers -Poor Risk Selection
Sales Treatment (Loans)
II RP NR - Answers -Isolated Interest
Right to Pledge
No Repurchase
Minimum New Institution Policies Required
FILL - Answers -Funds Management
Investment
Loan
Liquidity
State Report Adequacy Criterion
CAED - Answers -Completeness
Arrangements
Exam Objectives
Documentation
Purposes of Capital
PRAP - Answers -Promote confidence
Restrict excessive asset growth
Absorb losses
Protect DIF
IT Rating Areas
MADS - Answers -Management
Audit
Development and Acquisition
Support & Delivery
Reg O Executive Officers - Answers -Cashier
,Chairment
VP
Secretary
President
Treasurer
(Or participates in policy making function)
Money Laundering Stages
PLI - Answers -Placement
Layering
Integration
Trust Exam Components
MOECA - Answers -Management
Operations/Controls/Audit
Earnings
Compliance
Asset Management
Unsuitable Investment Activities
PAWREG - Answers -Pair-offs
Adjusted
When-issued
repositioning repo
extended settlement
gains
shorts
Appraisal Standards
SCUMWADD - Answers -State licensed/certified
USPAP
Market Value
Written
Appropriate Deductions/Discounts
Assets w/Embedded Options
examples... - Answers -NMDs
Callable Bonds
Structured Notes
Wholesale funds
Derivatives
Mtg Loans
MBS
Specialty Exams
,BITGMR - Answers -BSA
IT
Trust
Gov't Securities Dealer
Muni Dealers
Registered Transfer Agent
CRA Factors
CAMEO - Answers -Community development
Assess community needs
marketing/credit offered
Evidence of discrimination
Openings/closings of branches
Golden parachute allowed?
4 items - Answers -FDIC approves
white knight
consent for 12 months pay severance plan
prudent IAP (no wrongdoing)
Real Estate Lending Policy guidelines
MADUD - Answers -Monitoring
Administration
Diversification
Underwriting
Documentation
What loan problem?
No well defined repayment program - Answers -Failure to enforce/establish liquidation
terms
Concentrations write up format
IERRS - Answers -Identification
Economic & competitive factors
Risk profile
Risk mgmt & control
Summary
When is it OK to meet with Board committee i/o full Board? - Answers -influential to
policy
regular meetings
reasonable outside director participation
reports to full Board
Board meetings - hold when Comp 1,2? - Answers -36 months passed
Mgmt 3,4,5
, Other CAMELS is 4.5
Any two ratings 3,4,5
Board Meetings - who attends? (Comp 3,4,5) - Answers -quorum of BoD
4,5 - EIC + RD/designee
3 - EIC, RO representation discretionary
De Novo 'Material Deviation' from Business Plan Threshold? - Answers -+/- 25%
When Capital is very low, what is used for concentrations? - Answers -2% of Total
Assets
ORE FV less selling costs to book. Excess charged to?
Ongoing expenses? - Answers -To ALLL
Valuation allowance & expense charges
Cash flow value for income producing property formula? - Answers -NOI / Cap rate
NOI excludes interest expense + non-cash items
CRA Tests? - Answers -Lending
Investment
Service
Community Development (limited purpose bank only)
Check collateral to see if R/E collateral is abundance of caution! - Answers -If so,
appraisal not required
Remote job entry - Answers -Some data processing onsite, some outsourced
Trust Department minimums - Answers -Board involvement
Separate operations
separate books and records
Foreign bank exam cycle 18 mo eligibility - Answers -TA under $1B
ROCA compositd 1, or 2
No formal action
No change in control
Tier 1 and TRBC 6%, 10%
or, 108% eligible assets to liabilities
Not conforming to Part 325 minimum standards (Appendix A) exam treatment? -
Answers -Violation of Part 325
Part 335 Reporting Thresholds - Answers -Securities Act of 1942
TA > $1M
and 500 shareholders (750 at initiation; 500 ongoing)
What loan problem is this:
Absence sound lending policies, lack of sound credit judgment, lacking margin of
security, insufficient owner equity - Answers -Poor Risk Selection
Sales Treatment (Loans)
II RP NR - Answers -Isolated Interest
Right to Pledge
No Repurchase
Minimum New Institution Policies Required
FILL - Answers -Funds Management
Investment
Loan
Liquidity
State Report Adequacy Criterion
CAED - Answers -Completeness
Arrangements
Exam Objectives
Documentation
Purposes of Capital
PRAP - Answers -Promote confidence
Restrict excessive asset growth
Absorb losses
Protect DIF
IT Rating Areas
MADS - Answers -Management
Audit
Development and Acquisition
Support & Delivery
Reg O Executive Officers - Answers -Cashier
,Chairment
VP
Secretary
President
Treasurer
(Or participates in policy making function)
Money Laundering Stages
PLI - Answers -Placement
Layering
Integration
Trust Exam Components
MOECA - Answers -Management
Operations/Controls/Audit
Earnings
Compliance
Asset Management
Unsuitable Investment Activities
PAWREG - Answers -Pair-offs
Adjusted
When-issued
repositioning repo
extended settlement
gains
shorts
Appraisal Standards
SCUMWADD - Answers -State licensed/certified
USPAP
Market Value
Written
Appropriate Deductions/Discounts
Assets w/Embedded Options
examples... - Answers -NMDs
Callable Bonds
Structured Notes
Wholesale funds
Derivatives
Mtg Loans
MBS
Specialty Exams
,BITGMR - Answers -BSA
IT
Trust
Gov't Securities Dealer
Muni Dealers
Registered Transfer Agent
CRA Factors
CAMEO - Answers -Community development
Assess community needs
marketing/credit offered
Evidence of discrimination
Openings/closings of branches
Golden parachute allowed?
4 items - Answers -FDIC approves
white knight
consent for 12 months pay severance plan
prudent IAP (no wrongdoing)
Real Estate Lending Policy guidelines
MADUD - Answers -Monitoring
Administration
Diversification
Underwriting
Documentation
What loan problem?
No well defined repayment program - Answers -Failure to enforce/establish liquidation
terms
Concentrations write up format
IERRS - Answers -Identification
Economic & competitive factors
Risk profile
Risk mgmt & control
Summary
When is it OK to meet with Board committee i/o full Board? - Answers -influential to
policy
regular meetings
reasonable outside director participation
reports to full Board
Board meetings - hold when Comp 1,2? - Answers -36 months passed
Mgmt 3,4,5
, Other CAMELS is 4.5
Any two ratings 3,4,5
Board Meetings - who attends? (Comp 3,4,5) - Answers -quorum of BoD
4,5 - EIC + RD/designee
3 - EIC, RO representation discretionary
De Novo 'Material Deviation' from Business Plan Threshold? - Answers -+/- 25%
When Capital is very low, what is used for concentrations? - Answers -2% of Total
Assets
ORE FV less selling costs to book. Excess charged to?
Ongoing expenses? - Answers -To ALLL
Valuation allowance & expense charges
Cash flow value for income producing property formula? - Answers -NOI / Cap rate
NOI excludes interest expense + non-cash items
CRA Tests? - Answers -Lending
Investment
Service
Community Development (limited purpose bank only)
Check collateral to see if R/E collateral is abundance of caution! - Answers -If so,
appraisal not required
Remote job entry - Answers -Some data processing onsite, some outsourced
Trust Department minimums - Answers -Board involvement
Separate operations
separate books and records
Foreign bank exam cycle 18 mo eligibility - Answers -TA under $1B
ROCA compositd 1, or 2
No formal action
No change in control
Tier 1 and TRBC 6%, 10%
or, 108% eligible assets to liabilities
Not conforming to Part 325 minimum standards (Appendix A) exam treatment? -
Answers -Violation of Part 325
