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Mount Vernon B&T pays flood penalty

Mount Vernon, IA
07/01/2022
Fine Amount: 
$2,500
Issued by: 

Mount Vernon Bank and Trust Company, Mount Vernon, Iowa, was assessed a $2,500 civil money penalty by the FDIC on July 1, 2022, after the FDIC found the bank had engaged in a pattern or practice of violations of the Flood Disaster Protection Act, the notice requirements under section 1364 of the National Flood Insurance Act, and Part 339 of the FDIC's Rules and Regulations, 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 loans 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 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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