Platte Valley Bank pays for Flood Act violations
The FDIC issued an order to pay a $3,000 civil money penalty to PLATTE VALLEY BANK, North Bend, Nebraska, after the FDIC determined that the Bank 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 a loan secured by a building or mobile home located or to be located in a special flood hazard area without providing notice to the borrower and/or the servicer as to whether flood insurance was available for the collateral; and
- Failed to comply with proper procedures for force-placing flood insurance in instances where the collateral was not covered by flood insurance at some time during the term of the loan.