InfoBytes Blog
FDIC releases June enforcement actions
On July 30, the FDIC released a list of administrative enforcement actions taken against banks and individuals in June. During the month, the FDIC issued 14 orders and one decision, consisting of “four Orders to Pay Civil Money Penalties, one Section 19 Application, two Orders Terminating Consent Orders, four Orders of Termination of Insurance, and six Orders of Prohibition from Further Participation.” Among the orders is a civil money penalty imposed against a South Dakota-based bank related to alleged violations of the Flood Disaster Protection Act. Among other things, the FDIC claimed that the bank “[m]ade, increased, extended or renewed loans secured by a building or mobile home located or to be located in a special flood hazard area without requiring that the collateral be covered by flood insurance.” The order requires the payment of a $30,000 civil money penalty.
The FDIC also imposed a civil money penalty against a Missouri-based bank concerning alleged violations of the Flood Disaster Protection Act. Among other things, the FDIC claimed that the bank “made, increased, extended or renewed loans secured by a building or mobile home located or to be located in a special flood hazard area without providing timely notice to the borrower and/or the servicer as to whether flood insurance was available for the collateral.” The order requires the payment of a $1,000 civil money penalty.