Regions Bank pays $2.95M for flood insurance violations
The Federal Reserve Board has issued a consent order for assessment of a $2,945,500 civil money penalty. Of that amount, $58,000 will be remitted to FEMA for deposit into the National Flood Mitigation Fund as a civil money penalty for a pattern or practice of violations under Section 102(f)(2) of the Flood Act, 42 U.S.C. § 4012a(f)(2).
The balance, $2,887,500, is to be remitted to the U. S. Treasury as a penalty payment for the Board's finding that the bank, over a period of more than one year, as a result of changes in loan servicing platforms and third-party service providers, Regions did not effectively monitor a significant number of home equity loans and home equity lines of credit subject to the Flood Act for compliance with Regulation H. The bank discovered that certain home equity loans and home equity lines of credit were not being properly monitored for compliance with Regulation H, Regions addressed the monitoring failure and enhanced its flood compliance program by 2017.