InfoBytes Blog
FDIC releases April enforcement actions
On May 27, the FDIC released a list of administrative enforcement actions taken against banks and individuals in April. During the month, the FDIC made public eight orders consisting of “three consent orders, one order of prohibition, one order to pay civil money penalty, one section 19 order, and two orders terminating consent orders.” The FDIC also released one notice seeking "an order of prohibition and an order to pay civil money penalty.” An order to pay a civil money penalty was imposed against a Missouri-based bank related to alleged violations of the Flood Disaster Protection Act. Among other things, the FDIC claimed that the bank: (i) “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 requiring that the collateral be covered by flood insurance”; and (ii) “made, increased, extended, or renewed a loan 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 $2,250 civil money penalty.
The FDIC also issued a consent order to a Louisiana-based bank, which alleged that the bank had “unsafe or unsound banking practices or violations of law or regulation relating to deficiencies in management and Board oversight, earnings performance, capital support, interest rate risk management, and asset quality.” The bank neither admitted nor denied the alleged violations but agreed to, among other things, “maintain its Total Risk-Based Capital ratio equal to or greater than 12.00 percent.”