InfoBytes Blog
FDIC issues December enforcement actions
On January 27, the FDIC released a list of administrative enforcement actions taken against banks and individuals in December. The FDIC made public nine orders, including “one order to pay civil money penalty, two consent orders, one combined personal consent order and order to pay, two Section 19 orders, four prohibition orders, and seven orders of termination of insurance.”
The actions included a civil money order against a Georgia-based bank related to violations of the Flood Disaster Protection Act. The FDIC determined that the bank had engaged in a pattern or practice of violations because it “made, increased, extended, or renewed loans secured by a building or mobile home located in a special flood hazard area 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.”
Additionally, the FDIC issued a consent order against a Texas-based bank alleging the bank engaged in “unsafe or unsound banking practices or violations of law or regulation relating to, among other things, weaknesses in board and management oversight of the information technology function.” The bank neither admitted nor denied the allegations but agreed, among other things, that it would develop a staffing analysis plan “to ensure sufficient resources are available with the knowledge [and] prerequisite skills commensurate with the risk profile and complexity of the Bank’s information technology [] function.”