Mountain Valley Bank pays flood penalty
Mountain Valley Bank, Dunlap, TN, has been assessed a civil money penalty of $4,000 by the FDIC for engaging in a pattern or practice of committing violations of Part 339 of the FDIC Rules and Regulations, 12 C.F.R. Part 339, which implements section 102 of the FDPA, 42 U.S.C. § 4012a.
Specifically, on loans secured by property located in a flood hazard area in which flood insurance has been made available under the National Flood Insurance Act of 1968, as amended (“NFIA”), 42 U.S.C. § 4001 et seq., the bank violated:
- section 339.7(a) of the FDIC Rules and Regulations, 12 C.F.R. § 339.7(a), by:
- failing to provide the required force-place flood insurance notice to the borrower in four (4) instances;
- providing an incomplete force-place flood insurance notice to the borrower in one (1) instance;
- allowing flood insurance to lapse during the term of the loan without force-placing flood insurance on the borrower’s behalf in five (5) instances; and
- failing to maintain an adequate amount of flood insurance in two (2) instances.
- section 339.9(c) of the FDIC Rules and Regulations, 12 C.F.R. § 339.9(c), by failing to provide a Notice of Special Flood Hazards and Availability of Federal Disaster Relief Assistance timely in four (4) instances.