Regions Bank will pay $2.95 million over “unsafe and unsound practices” in its flood insurance compliance program and for flood insurance regulatory violations, the Federal Reserve said Tuesday.
The Birmingham, Alabama-based bank failed to monitor a portfolio of home equity loans for compliance with flood insurance regulations “due to changes in loan servicing platforms and third-party service providers,” the Fed said, adding that Regions had a pattern of individual violations with flood insurance regulations.
The issue was “self-identified by Regions several years ago [and the bank] took corrective action and remediated the issue by 2017,” a bank spokesperson said.
The matter was confined to the bank’s “own internal monitoring of flood insurance policies on certain properties,” and there was no customer impact, according to the spokesperson.
“Today, years after correcting the issue, we are pleased to now fully resolve this legacy matter,” the spokesperson said.
The Fed had no comment beyond Tuesday’s release.