InfoBytes Blog
FDIC releases January enforcement actions
On February 26, the FDIC released a list of administrative enforcement actions taken against banks and individuals in January. During the month, the FDIC issued 11 orders consisting of “two consent orders, two section 19 orders, two prohibition orders, two orders to pay civil money penalties, one order terminating consent order, and two orders terminating consent orders and orders for restitution.” Among the orders is a civil money penalty issued against a Tennessee-based bank related to alleged violations of the Flood Disaster Protection Act. Among other things, the FDIC claims that the bank (i) failed to provide required lender-placed flood insurance notices to borrowers about the availability of flood insurance under the National Flood Insurance Act; (ii) provided an incomplete lender-placed flood insurance notice to a borrower; (iii) allowed flood insurance to lapse during the terms of several loans without placing flood insurance on borrowers’ behalf; (iv) failed to maintain an adequate amount of flood insurance; and (v) failed to provide timely notice of special flood hazards and the availability of federal disaster relief assistance. The order requires the payment of a $4,000 civil money penalty.