Burnet, Texas, bank pays $21,700 flood violation penalty
The FIRST STATE BANK OF BURNET, Burnet, Texas, has been ordered by the FDIC to pay a $21,700 civil money penalty for violations of the Flood Disaster Protection Act. The FDIC determined that the bank has engaged in a pattern or practice of committing violations of the FDPA and FDIC regulations, by
- failing to obtain flood insurance coverage at loan origination, increase, extension, or renewal on loans secured by a building or mobile home located in a special flood hazard area in which coverage is available under the National Flood Insurance Act
- failing to obtain the required amount of flood insurance coverage on designated loans
- failing to maintain the required amount of of flood insurance coverage on designated loans for the term of the loan
- failing to provide a notice of force placement of flood insurance within 45 days of force placement
- failing to provide a written Notice of Special Flood Hazards and Availability of Federal Disaster Relief Assistance to the borrower whether or not flood insurance is available.