Settlers Bank pays $3,000 flood insurance penalty

The FDIC has issued a consent order for the payments of a $3,000 civil money penalty on SETTLERS BANK, De Forest, Wisconsin, for engaging in a pattern or practice of committing violations of the FDPA, the notice requirements under section 1364 of the National Flood Insurance Act of 1968 and Part 339 of the FDIC’s Rules and Regulations, 12 C.F.R. Part 339 as follows:

• section 339.3(a) of the FDIC Rules and Regulations, 12 C.F.R. § 339.3(a), by failing to obtain adequate flood insurance for two (2) loans; and
• section 339.9(c) of the FDIC Rules and Regulations, 12 C.F.R. § 339.9(c), by failing to provide to borrowers a Notice of Special Flood Hazard and Availability of Federal Disaster Relief Assistance within a reasonable time before the completion of the transaction on four (4) loans.