Grant County Bank pays $4,500 flood penalty

The FDIC has issued a consent order for the payment of a $4,500 civil money penalty after finding that the bank engaged in a pattern or practice of committing violations of Part 339 of the FDIC Rules and Regulations, 12 C.F.R. Part 339, which implements section 102 of the Flood Disaster Protection Act, 42 U.S.C. § 4012a. Specifically, the Bank violated section 339.5(a) of the FDIC Rules and Regulations, 12 C.F.R. § 339.5(a), by failing to escrow insurance premiums on refinanced loans with a balloon payment in 6 instances of total 17 loans reviewed, including 7 balloon loans.