§4618 Notice of classification and enforcement action

Summary

The Director must give a regulated entity a written notice before taking certain supervisory actions. The notice must say why the action is proposed and list the information the Director relied on. The rule covers changing an entity’s capital classification under section 4614, discretionary supervisory actions under sections 4615 and 4616, and it excludes appointing a conservator under section 4616(b)(6). After the notice, the entity has 30 days to send any information it wants the Director to consider, and the Director may hold an informal hearing. The Director can extend that 30-day period once for up to 30 more days for good cause, or shorten it if the entity agrees or the entity’s condition requires. If the entity gives no information during the response period, it loses the right to comment. When the response period ends or when the Director gets the information, the Director decides and sends a written decision with reasons to the entity and to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate. The action takes effect when the entity receives the Director’s decision unless the decision says otherwise.