State Bank Fined for Failing to Notify Borrowers of Flood Insurance Requirement

FDIC  •  Flood Insurance

On January 29, 2015, a state bank entered into a consent order with the Federal Deposit Insurance Corporation (“FDIC”), agreeing to pay a civil monetary penalty of $5,400 related to allegations that the bank had violated section 102(f)(1) of the Flood Disaster Protection Act of 1973, 42 U.S.C. § 4012a(f)(1), and section 339.7 of the FDIC Rules and Regulations, 12 C.F.R. § 339.7. The FDIC determined that the bank committed 27 violations of section 339.7 by failing to notify borrowers whose property was located in a Special Flood Hazard Area that they needed to obtain separate flood insurance or supplemental flood insurance.

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