The civil money penalty that First Interstate Bank in Billings, Montana is paying to resolve alleged federal
The $70,000 fine by the Federal Reserve Board of Governors addresses what it claimed was a "pattern or practice" in which the bank neglected responsibilities it had for coverage.
The fine is in line with reports that regulators have remained active this year in enforcing lenders' and servicers' responsibilities for tracking, ensuring coverage and providing notifications related to mortgaged properties in special flood hazard zones.
"We've seen numerous violations with significant civil money penalties being assessed," Dean Stockford, president and CEO of financial services advisory firm M&M Consulting, said during
Areas where Stockford said he's seen shortcomings are in proof of receipt and the amount of required coverage. Ordering flood zone determinations early enough in the process to provide notification within timelines regulators consider acceptable also has been a concern.
Other financial institutions that have entered into consent orders with the Fed's board to resolve alleged flood insurance violations in recent years include Regions Bank in Birmingham, Alabama, which paid
Just before the onset of the pandemic in 2020,