United Bank of Iowa hit with flood penalty
The FDIC issued a consent order to pay a civil money penalty of $8,000 to United Bank of Iowa, Ida Grove, Iowa, having determined that the bank had engaged in a pattern or practice of committing violations of the Flood Disaster Protection Act and the notice requirements under section 1364 of the National Flood Insurance Act of 1968, 42 U.S.C. 4104a, and Part 339 of the FDIC’s Rules and Regulations, 12 C.F.R. Part 339, because the bank:
- Made, increased, extended or renewed loans secured by a building or mobile home located or to be located in a special flood hazard area without requiring that the collateral be covered by flood insurance;
- Failed to timely notify the borrower that the borrower should obtain flood insurance, at the borrower’s expense, upon determining that the collateral was not covered by flood insurance at some time during the term of the loan; and
- Failed to timely purchase flood insurance on the borrower’s behalf when the borrower failed to do so within 45 days of being advised to obtain adequate flood insurance.