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March 29, 2016

FDIC Orders Wisconsin Bank to Pay Civil Money Penalty for Violation of Flood Disaster Protection Act

​On March 28, the Federal Deposit Insurance Corporation (FDIC) announced the release of its February 2016 enforcement actions against banks and individuals.  The FDIC announced that, after entering into a consent agreement with a Wisconsin bank on January 26, the bank consented to an order to pay civil money penalties of $9,385 for the bank’s alleged violation of the Flood Disaster Protection Act of 1973 (“FDPA”).

According to the consent order, the FDIC determined that the bank engaged in a pattern or practice of violating the FDPA and/or the notice provisions of the FDIC’s regulations, by, on multiple occasions, making, increasing, extending, or renewing loans secured by property in a special flood area without requiring that the collateral​ be covered by sufficient flood insurance.

The post FDIC Orders Wisconsin Bank to Pay Civil Money Penalty for Violation of Flood Disaster Protection Act appeared first on Consumer Finance Insights (CFI).