Posted 1/17/2014 02:28 pm
Updated 6 months ago
First Federal Bank of Harrison has been fined $3,000 by its main regulator for failing to comply with insurance requirements on loans secured by property located in floodplains.
Officials of the publicly traded thrift neither confirmed nor denied any violations, but they agreed to the penalty in a consent order executed Dec. 10 (PDF) and made public Friday by the Office of the Comptroller of the Currency.
The OCC accused First Federal of "a pattern or practice of making, increasing, extending or renewing loans secured by property in a special flood hazard area without timely providing the required notices, and retaining a record of the receipt thereof, that the properties are located in a special flood hazard area and that, if applicable, flood insurance is available under the National Flood Insurance Act."
First Federal Bancshares of Arkansas Inc. (Nasdaq: FFBH) is the parent company of First Federal Bank.