Sherwood Community Bank pays $2,250 flood penalty

Sherwood Community Bank, Creighton, MO, was issued a consent order for payment of a $2,250 civil money penalty for violations of the Flood Disaster Protection Act, the National Flood Insurance Act of 1968, and the FDIC Rules of Practice and Procedure at 12 CFR Part 339.

The FDIC found that 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; and
• 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.