InfoBytes Blog
FDIC releases March enforcement actions
On April 30, the FDIC released a list of administrative enforcement actions taken against banks and individuals in March. During the month, the FDIC issued 10 orders consisting of “five Prohibition Orders, three Orders to Pay Civil Money Penalties, two Section 19 Applications, one Order to Correct Conditions, and one Order Terminating Consent Order.” Among the orders is a civil money penalty imposed against a Puerto Rico bank related to alleged violations of the Flood Disaster Protection Act for failing to “timely force place insurance in connection with loans secured by a dwelling located within a special flood hazard area” on 27 occasions. The order requires the payment of a $40,500 civil money penalty.
The FDIC also imposed a civil money penalty against a Tennessee bank related to alleged violations of the Flood Disaster Protection Act. Among other things, the FDIC claims that the bank (i) failed to obtain flood insurance at or before the origination, increase, renewal, or extension of loans in 61 instances; (ii) failed to maintain an adequate amount of flood insurance in 88 instances; (iii) failed to provide required lender-placed flood insurance notices to borrowers within 45-days of force placement in 10 instances; (iv) provided an incomplete lender-placed flood insurance notice to a borrower; and (v) failed to provide timely notice of special flood hazards and the availability of federal disaster relief assistance in 37 instances. The order requires the payment of a $172,500 civil money penalty.