Nebraska State Bank pays $6,500 for flood insurance violations
The FDIC has, with the consent of the bank, ordered Nebraska State Bank, Oshkosh, Nebraska, to pay a $6,500 civil money penalty for violations of the Flood Disaster Protection Act (FDPA), after finding that 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;
- 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 timely 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.
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