FDIC TE JF Exam Questions
Verified Correct Answers Current
Update (A+ Pass)
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
Verified Correct Answers Current
Update (A+ Pass)
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
