Regional Bank Fined $2.95 Million For Flood Insurance Regulatory Violations

The Federal Reserve Board recently issued an Order of Assessment of a Civil Money Penalty for $2.95 million against a regional bank for alleged violations of the National Flood Insurance Act and Regulation H, which implements the requirements of that law.

The Federal Reserve Board alleged the bank failed to effectively monitor certain home equity loans and home equity lines of credit for compliance with Regulation H and engaged in a pattern or practice of individual violations of the flood insurance regulations.

The bank consented to the Order to settle the matter without further investigation or litigation, but it did not admit or deny any of the allegations made or implied by the Federal Reserve Board.