Freedom Bank pays $8,250 flood insurance penalty

The penalty was assessed by the FDIC for a pattern or practice of flood insurance violations:

• by making, increasing, extending, or renewing designated loans when the building or mobile home or any personal property securing the loan was not covered by flood insurance for the term of the loan in an amount equal to the lesser of the outstanding principal balance of the designated loan or the maximum limit of coverage available for the particular type of loan under the Act
• by failing to notify the borrower that the borrower should obtain flood insurance, at the borrower’s expense, in an amount at least equal to the amount required under §339.3, for the remaining term of the loan, upon determining that the building or mobile home or any personal property securing the designated loan is not covered by flood insurance or is covered by flood insurance in an amount less than the amount required under §339.3
• by failing to purchase flood insurance on the borrower’s behalf upon the borrower’s failure to obtain flood insurance within 45 days after notification
• by failing to notify the borrower whether or not flood insurance is available under the Act for the collateral securing the loan when making, increasing, extending, or renewing a loan secured by a building or a mobile home located or to be located in a special flood hazard area;
• by failing to timely notify the borrower whether or not flood insurance is available under the Act for the collateral securing the loan when making, increasing, extending, or renewing a loan secured by a building or a mobile home located or to be located in a special flood hazard area.