Fed announces flood insurance violations

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

On August 12, the Federal Reserve Board announced enforcement actions against two state banks. In the first consent order issued against a Massachusetts-based bank, the Fed alleged that the bank violated the National Flood Insurance Act (NFIA) and Regulation H. The order assesses a $71,000 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.

In the second consent order issued against a New York-based bank, the Fed alleged that the bank violated the National Flood Insurance Act (NFIA) and Regulation H. The order assesses a $11,000 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.