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OCC fines Citibank $18M for violating Flood Disaster Protection Act

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OCC fines Citibank $18M for violating Flood Disaster Protection Act

The Office of the Comptroller of the Currency levied an $18.0 million civil money penalty against Sioux Falls, S.D.-based Citibank NA for violating the Flood Disaster Protection Act of 1973.

The OCC found that the bank failed to buy regulatory required flood insurance on behalf of borrowers with loans secured by buildings and mobile homes located in special flood hazard areas where flood insurance is available in a timely manner.

The regulator noted that the bank's deficient Flood Disaster Protection Act policies and procedures allowed its third-party service provider to extend the 45-day notification period after the initial borrower notification, resulting in the untimely force placement of flood insurance on designated loans.

The bank paid the fine to the Federal Emergency Management Agency's National Flood Insurance Program.

Citibank is a unit of Citigroup Inc.