During a recent compliance examination, regulatory examiners found that the bank was not conducting flood hazard area determinations before closing on construction loans. The compliance professional has reviewed the files and agreed with the examiners' finding. What should be done FIRST?
- Review the bank's flood policies and procedures to determine where the compliance failure occurred
- Conduct a risk assessment of the flood determination requirement on construction loans
- Prepare an analysis for bank management explaining the requirement
- Review all construction loan files to determine the extent of the problem