Posted by Steve Van Beek
Sometimes it takes catastrophic events like the floods in North Dakota to get everyone focused on the need for flood insurance. However, bank regulators have been consistent - rain or shine - in handing out flood insurance civil money penalties (CMPs). Here is a link to a updated list of flood penalties including some recently handed out by the FDIC. Currently, the penalty amount is $385 per violation, but there is some talk in Congress of increasing the penalty to $2,000 per violation and eliminating the annual cap on penalties (currently $130,000 for FCUs).
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Just a reminder that NCUA issued a Regulatory Alert earlier this year to inform credit unions of the new Standard Flood Hazard Determination Form from FEMA.
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