WASHINGTON (8/25/15)--Deficiencies in Bank of America’s Flood Act practices led the Office of the Comptroller of the Currency (OCC) to assess civil money penalties totaling nearly $1.1 million Monday.
According to the OCC, the bank’s practices violate the National Flood Insurance Act of 1968 and the Flood Disaster Protection Act of 1973 and their implementing regulations.
An examination by the OCC found that Bank of America makes, increases, extends, renews and services loans secured by buildings or mobile homes located special flood hazard areas in which flood insurance is available under the National Flood Insurance Act of 1968.
This violates several provisions relating to the requirement to purchase flood insurance where available and to provide notice of special flood hazards and availability of federal disaster relief assistance.
According to the OCC, these violations are a result of deficient policies, procedures and processes, as well as an ineffective Flood Disaster Protection Act compliance program.