InfoBytes Blog
FDIC releases July enforcement actions, including breaches of fiduciary duty and FDPA violations
On August 25, the FDIC announced a list of administrative enforcement actions taken against banks and individuals in July. The 10 orders include “two orders that combined a prohibition order and order to pay CMP; one combined personal consent order and order to pay CMP; four prohibition orders; one order modifying a prohibition order; one order of termination of deposit insurance; and one order to pay CMP for pattern or practice violations of the Flood Disaster Protection Act.” The FDIC assessed a civil money penalty against a North Dakota-based bank for alleged violations of the Flood Disaster Protection Act and the National Flood Insurance Act including providing or extending loans secured by a building or mobile home situated in or intended for placement within an area with a recognized risk of flooding, without promptly notifying the borrower and/or the servicer about the availability of flood insurance for the asset.