InfoBytes Blog
FDIC releases October enforcement actions
On November 27, the FDIC released a list of administrative enforcement actions taken against banks and individuals in October. During the month, the FDIC issued eight orders and two notices consisting of “one consent order, one order to pay a civil money penalty, one section 19 order, one removal order, two orders terminating consent or cease and desist orders, two orders modifying removal orders, one notice of assessment, and one notice of charges.” The consent order, issued against a Wisconsin-based bank, relates to alleged violations of 12 C.F.R. Part 339, which implements the requirements of the National Flood Insurance Act (NFIA) and the Flood Disaster Protection Act. Among other things, the FDIC claims that the bank failed to (i) obtain an adequate amount of flood insurance at the origination of several loans; (ii) provide notice to borrowers of the insufficiencies or follow force-placement requirements; or (iii) provide notice to borrowers about the availability of flood insurance under the NFIA. The consent order requires the payment of a $12,841 civil money penalty.