Guaranty Bank and Trust pays $80,500 flood insurance penalty

The FDIC considered the matter and determined that the Bank has engaged in a pattern or practice of committing a total of 156 violations, including:

(a) two (2) violations of section 102(b)(1) of the FDPA, 42 U.S.C. § 4012a(b)(1), section 339.3(a) of the FDIC Rules and Regulations, 12 C.F.R. § 339.3(a), for failure to obtain flood insurance or obtain an adequate amount of insurance coverage, at or before loan origination, for all structures in a flood zone, including multiple structures;

(b) three (3) violations of section 102(b) of the FDPA, 42 U.S.C. § 4012a(b)(7), section 339.3(c) of the FDIC Rules and Regulations, 12 C.F.R. § 339.3(c), for failure to determine whether all requirements were met, prior to accepting an insurance plan issued by a Mutual Aid Society, for flood insurance coverage;

(c) one hundred thirty-one (131) violations of section 102(b)(6) of the FDPA, 42 U.S.C. § 4012a(b)(6), section 339.9(a), 12 C.F.R. § 339.9(a), for failure 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; and

(d) twenty (20) violations of section 1364(a)(1) of the National Flood Insurance Act of 1968, 42 U.S.C. § 4104a(a)(1), section 339.9(c), 12 C.F.R. § 339.9(c) for failure to provide the Notice of Special Flood Hazards and Availability of Federal Disaster Relief Assistance to the borrower within a reasonable time before completion of the loan transaction, and to the servicer as promptly as practicable, after notice is provided to the borrower.