The Federal Reserve Board announced a $135,000 fine Thursday against Regions Financial Corp. for alleged violations of the National Flood Insurance Act.
The penalty against the Birmingham, Ala., company's bank subsidiary required it to pay the fine into the nation's flood insurance program. The Fed's order did not address the bank's specific alleged infractions. Violators of the law are usually cited for giving mortgages to borrowers in flood areas without requiring they get flood insurance.
The Fed said Regions had accepted the fine without admitting the allegations.
Tim Deighton, a company spokesman, said the violations related to "legacy loans" made as far back as 2003. "Customers were not impacted; we took the corrective actions, and subsequent flood examinations identified no significant issues," he said.
