A $9,600 civil money penalty was imposed on Select Bank, Forest, Va., over findings of federal flood insurance law violations, according to a consent order announced Tuesday by the Federal Reserve Board.
The order refers to the bank’s “pattern or practice” of violations of the Fed’s Regulation H, which implements requirements of the National Flood Insurance Act. Generally, the act requires regulated lenders not to provide make (or extend, renew, etc.) loans for the purchase of improved real estate of a mobile home located in an area having special flood hazards unless the property is covered by flood insurance.
The order was dated Feb. 9.
Federal Reserve Board issues enforcement action with Select Bank