NM bank slapped with $49k penalty for flood insurance violations

A $49,000 civil money penalty was assessed against a New Mexico state member bank for violations of federal rules implementing the National Flood Insurance Act (NFIA), according to an order announced by the Federal Reserve Wednesday.

The order, dated Nov. 26, cites a “pattern or practice of violations” by MyBank, of Belen, N.M., of Federal Reserve requirements implementing the flood insurance act. The act requires the assessment of civil money penalties up to $2,000 for each violation.

The order says Fed will remit the bank’s $49,000 payment to the Federal Emergency Management Agency for the National Flood Mitigation Fund.

Federal Reserve Board issues enforcement action with MyBank