What do the Regulators consider to be violations of the flood insurance regulations and what are the penalties that can be imposed on lending institutions?
Violations under the federal regulations include making, increasing, renewing, or extending a loan on improved real estate in the Special Flood Hazard Area without (1) Placing flood insurance, (2) Escrowing premiums for flood insurance, when applicable, (3) Providing required Notices, and (4) Lender-placing flood insurance, when applicable. A regulated lending institution that is found to have a pattern or practice of committing violations shall be assessed a civil penalty of $350 per violation up to an aggregate annual amount of $100,000 against an institution. Additional actions that can be taken against an institution include unsatisfactory bank ratings and cease and desist orders in extreme cases.
Related Questions
- What do the Regulators consider to be violations of the flood insurance regulations and what are the penalties that can be imposed on lending institutions?
- How do lending institutions determine a loans flood insurance requirement?
- How do lending institutions determine a loans flood insurance requirement?
