Cadence Bank hit with flood insurance penalty tsunami

Cadence Bank, Tupelo, Mississippi, was issued a consent order for the payment of a $320,500 civil money penalty for a pattern or practice of violations of the Flood Disaster Protection Act and Part 308 of the FDIC's Rules and Regulations. The Order provided a listing of the FDIC's findings constituting that pattern or practice:

• 128 failures to obtain the required flood insurance or obtain an adequate amount of insurance coverage at or before loan origination for all structures in a flood zone.
• 286 failures to mail or deliver a written notice to the borrower and to the servicer, whether or not flood insurance is available under the Act, for the collateral securing the loan
• 99 failures to provide the notice within a reasonable time before the completion of the loan transaction, and to the servicer as promptly as practicable after notice is provided to the borrower