Violations of federal flood insurance requirements will cost a San Francisco-based bank $281,000 for failing to tell a borrower it needed the insurance for property it was purchasing through a loan from the bank, the federal insurer of bank deposits said Friday.
The Federal Deposit Insurance Corp. (FDIC) said it assessed the civil money penalty (CMP) in April against Bank of the West, San Francisco, for violating the flood insurance notification requirements. The bank was also cited for failing to purchase the flood insurance on the borrower’s behalf after the borrower failed to obtain the flood insurance 45 days after notification.
The FDIC also said it assessed in April another CMP of $17,000 for a similar violation, that one against Heritage Bank of Olympia, Wash. The agency said the bank failed to obtain flood insurance on buildings (or their contents) that secured designated loans at the time the bank made, modified or renewed the loans.