Consumer Finance Insights
August 3, 2015

FDIC Orders Bank to Pay Civil Penalties for Violations of Flood Act

On June 1, the Federal Deposit Insurance Corporation (FDIC) entered into a consent order for civil penalties against a local Massachusetts bank concerning alleged violations of the Flood Disaster Protection Act of 1973 and Part 339 of the FDIC Rules and Regulations.  The FDIC alleged that the bank made loans secured by property in a special flood hazard area, without requiring sufficient flood insurance coverage for the collateral proprety.  The bank consented to pay $10,650 to the United States Treasury.