Fortifi Bank pays $15,375 flood insurance penalty
The FDIC has issued a consent order to the bank for the payment of a $15,375 civil money penalty for engaging in a pattern or practice of committing violations of the Flood Disaster Protection Act and/or the notice requirements under the National Flood Insurance Act, by violating:
- Section 339.3(a) of the FDIC Rules and Regulations, 12 C.F.R. § 339.3(a), by allowing flood insurance to lapse during the term of the loan in one instance; and failing to obtain adequate flood insurance in four instances;
- Section 339.5(a)(4) of the FDIC Rules and Regulations, 12 C.F.R. § 339.5(a)(4), by failing to escrow funds for insurance premiums in nine instances; and
- Section 339.9(a)(4) of the FDIC Rules and Regulations, 12 C.F.R. § 339.5(a)(4), by failing to provide written notice of flood insurance at renewal in thirteen instances.