InfoBytes Blog
FDIC Releases List of Enforcement Actions Taken Against Banks and Individuals in September 2017
On October 27, the FDIC released a list of 23 orders of administrative enforcement actions that it has taken against banks and individuals in September, as well as one consent order termination issued in August. Civil money penalties were assessed against two banks, including one citing violations of the Flood Disaster Protection Act and the National Flood Insurance Act for (i) failing to obtain flood insurance during loan origination or to obtain “adequate” flood insurance, and (ii) failing to provide written notice in a timely fashion—or at all—to borrowers that the property securing the loan was in a special flood hazard area.
Consent orders were issued against eight institution-affiliated parties related to unsafe or unsound banking practices and breaches of fiduciary duty concerning their actions when supervising a Pennsylvania bank’s mortgage division. Also on the list are five Section 19 orders, which allow applicants to participate in the affairs of an insured depository institution after having demonstrated “satisfactory evidence of rehabilitation,” and three terminations of consent orders, among others.
There are no administrative hearings scheduled for November 2017. The FDIC database containing all 24 enforcement decisions and orders may be accessed here.