Bank of Bluffs flood penalties
The bank was issued an order to pay the CMP for engaging in a pattern or practice of violations of the Flood Disaster Protection Act and/or the notice requirements of the National Flood Insurance Act, and/or Part 339 of the FDIC's regulations, by:
- failing to obtain flood insurance on a building securing a designated loan on three occasions
- failing to obtain adequate flood insurance for seven loans
- failing to maintain flood insurance for six loans
- failing to follow force placement flood insurance procedures for seven loans, and
- failing to provide borrowers a Notice of Special Flood Hazard and Availability of Federal Disaster Relief Assistance within a reasonable time before consummation on three loans.
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