Federal Reserve Board fines Regions Bank $2.95 million for flood insurance regulatory violations
BIRMINGHAM, Ala. (WBRC) - The Federal Reserve Board issued an enforcement action and fined Regions Bank, one of Birmingham’s largest companies, approximately $2.95 million for unsafe and unsound practices in its flood insurance compliance program and for flood insurance regulatory violations.
The government says Regions Bank failed to monitor a group of home equity loans to make sure they complied with the National Flood Insurance Act.
The bank says it addressed the monitoring failure and enhanced its flood compliance program by 2017.
According to court documents, Regions Bank is paying the fine to bring the matter to a close without admitting or denying the violation.
A Regions Bank spokesperson also says there was no impact to customers and released the following statement on the matter:
The issue addressed in the consent order was self-identified by Regions several years ago. We took corrective action and remediated the issue by 2017. There was no customer impact as the matter was confined to our own internal monitoring of flood insurance policies on certain properties. Today, years after correcting the issue, we are pleased to now fully resolve this legacy matter.
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