Flagstar Bank pays $500K for deficient flood compliance program
The OCC issued a Consent Order for a Civil Money Penalty of $500,000 to Flagstar Bank, FSB, Troy, Michigan, for violating final orders containing provisions related to the National Flood Insurance Act of 1968 and the Flood Disaster Protection Act of 1973. The Comptroller found that --
- Flagstar entered into a Supervisory Agreement with the OTS on 1/27/2010, which required Flagstar to, among other things, revise its policies, procedures and systems for compliance with the requirements of the FDPA within 90 days.
- Supervisory authority of Flagstar transferred from the OTS to the OCC under the Dodd-Frank Act on 7/11/2011
- On 10/23/2012, Flagstar and the OCC entered into a Consent Order replacing the OTS Supervisory Agreement. The Consent Order required Flagstar to, among other things, adopt, implement, and thereafter ensure Bank adherence to FDPA policies and procedures detailing a coordinated program to ensure Bank compliance with laws and regulations.
- During the 2011, 2012, 2013, and 2014 examinations of the Bank, examiners assessed the Bank’s progress in obtaining compliance with the Supervisory Agreement and Consent Order, and determined that the Bank failed to achieve compliance with the FDPA-related provisions.