Consumer Finance Insights
May 14, 2015

FDIC State-Member Bank Agrees to Civil Money Penalty to Resolve Flood Insurance Enforcement Action by the Federal Reserve

​On May 12, the Board of Governors of the Federal Reserve System announced the execution of a settlement in an enforcement action against a state member bank concerning alleged violation of Section 102(f) of the National Flood Insurance Act (NFIA). The settlment noted that where a pattern of practice of violations of the NFIA is found, civil money penalties can be imposed up to $2,000 per violation. To resolve the enforcement action, the bank consented to a civil money penalty of $2,100, without admitting wrongdoing and without any “finding on any issue of fact or law.”