Spring Valley Bank pays $1,500 for flood insurance rules violations

The FDIC issued the civil money penalty after determining that the bank had engaged in a pattern or practice of committing violations of the FDPA, the notice requirements under section 1364 of the National Flood Insurance Act of 1968, 42 U.S.C. § 4104a, and Part 339 of the FDICs Rules and Regulations, 12 C.F.R. Part 339 as follows:

• Section 339.3(a) of the FDIC Rules and Regulations, 12 C.F.R. § 339.3(a), by failing to obtain adequate flood insurance at the time of the origination of two (2) loans;
• Section 339.9(a) of the FDIC Rules and Regulations, 12 C.F.R. § 339.9(a), by failing to provide to borrowers a Notice of Special Flood Hazard and Availability of Federal Disaster Relief Assistance when making, increasing, extending or renewing a loan on one (1) occasion; and
• Section 339.9(c) of the FDIC Rules and Regulations, 12 C.F.R. § 339.9(c), by failing to provide to borrowers a Notice of Special Flood Hazard and Availability of Federal Disaster Relief Assistance within a reasonable time before the completion of the transaction on one (1) loan.