Fed takes action against bank for flood insurance violations

Bank Regulatory Federal Issues Federal Reserve Flood Insurance National Flood Insurance Act Regulation H Enforcement

On July 7, the Federal Reserve Board announced a civil money penalty against a Massachusetts state bank. In the order, the Fed alleged that the bank violated the National Flood Insurance Act (NFIA) and Regulation H. The order assesses a $17,000 penalty against the bank for an alleged pattern or practice of violations of Regulation H but does not specify the number or the precise nature of the alleged violations. The maximum civil money penalty under the NFIA for a pattern or practice of violations is $2,000 per violation.