FCA Info Memo - Report on Violations of Consumer, Borrower Rights, and Flood Insurance Regulations

Informational Memorandum
Subject:	Report on Violations of Consumer, Borrower Rights, and Flood Insurance Regulations
Date of Memorandum:	12/30/2002
Expiration Date:
Office:	OE
Signed By:	Smith, Roland
FCA Contact Person:	Holland, Tom
Contact Phone:	703-883-4484
List of Attachments:	Violations of Consumer Borrower Rights and Flood Insurance Regulations Identified in FY 2002 Examinations

INFORMATIONAL MEMORANDUM

December 30, 2002

To: Chairman, Board of Directors
Chief Executive Officer
Each Farm Credit System Institution

From: Roland E. Smith, Director
Office of Examination

Subject: Report on Violations of Consumer, Borrower Rights, and Flood Insurance Regulations

Attached is a summary report on violations of consumer, borrower rights, and flood insurance regulations identified in Farm Credit Administration (FCA) examinations. The report, based on the examinations conducted, provides trends on the number and types of violations occurring over the past 5 fiscal years (FY) (1998 to 2002) in the Farm Credit System (FCS or System). In summary, the FCS experienced a 25 percent decline in the total number of violations of consumer, borrower rights, and flood insurance regulations. During the same 5-year period, there was an 18 percent decline in the number of institutions with violations. The number of violations and the number of institutions with violations also declined between FY 2001 and FY 2002. We have required institutions to take corrective actions to ensure compliance with the regulations. Based on our follow-up activities, we have concluded that corrective actions have been taken or are in process by all affected institutions.

If you have any questions, please feel free to contact the Director of your respective FCA Field Office, or Thomas J. Holland, Director, Special Examination and Supervision Division, Office of Examination, at (703) 883-4483, or correspond on the Internet at e-mail address hollandt@fca.gov.

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