Ultima Bank Minnesota pays flood insurance penalty
The FDIC issued an order for the assessment of a $3,000 civil money penalty to Ultima Bank of Minnesota, Winger, MN, for flood insurance violations 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;
- 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/or
- 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.
First published on: