PNC Bank, NA, pays $2.6M for flood insurance violations
The OCC has issued a Consent Order against PNC Bank, National Association, for a pattern or practice of violations of the Flood Disaster Protection Act and the OCC's implementing regulations at 12 C.F.R. § 22.7(a).
The OCC found, and the bank neither admits not denies:
- As part of its Flood Act compliance program, the Bank utilizes a third-party to service its Designated Loans within its residential lending unit to notify the borrowers and force place flood insurance when the flood insurance fails to appropriately cover the Collateral.
- In a 2020 examination of the bank's Flood Act compliance program, the OCC found the Bank’s policies and procedures allowed its third-party servicer to extend the 45-day period after notification to the borrower resulting in the untimely force placement of flood insurance on Designated Loans. At the time of the examination, the Bank had self-identified this issue and had begun taking action to remediate the third-party’s practice.
- As a result of this practice, since at least 2016, the Bank failed to force place insurance in a timely manner on residential Designated Loans and engaged in a pattern or practice of violations of the Flood Act and its implementing regulation, specifically, 12 C.F.R. § 22.7(a) (Force placement of flood insurance.)