Stockgrowers State Bank pays $5,250 penalty for flood violations

Stipulation and consent order to pay a civil money penalty of $5,250 for violations of the Flood Disaster Protection Act and National Flood Insurance Act 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
• 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.