FDIC Orders Ohio Bank to Pay Penalty for Allegedly Violating Flood Insurance Requirements

FDIC  •  Flood Insurance

FDICOn September 25, the Federal Deposit Insurance Corporation (FDIC) announced the release of its August 2015 administrative enforcement actions against banks and individuals.  The FDIC disclosed that after entering into a consent order with an Ohio bank on July 21, the FTC had issued an order on August 10 requiring the bank to pay a civil money penalty of $6,900 for the bank’s alleged violation of the Flood Disaster Protection Act of 1973 and the National Flood Insurance Act of 1968.  The order alleged that on loans secured by property located in a flood hazard area, the bank had failed to obtain flood insurance at the time of origination, failed to maintain flood insurance, failed to follow force placement flood insurance procedures, or failed to provide borrowers notices required under the Acts.

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