Spencer Savings Fined
Spencer Savings Bank has paid two Federal Deposit Insurance Corp. penalties totaling $10,305 for violations of the federal Home Mortgage Disclosure Act and the Flood Disaster Protection Act.
According to the FDIC, the bank paid the penalties under a consent agreement that does not require the bank to admit or deny any wrongdoing.
The FDIC alleged that Spencer Savings made mortgage loans on properties without requiring the properties to be covered by sufficient flood insurance, without providing timely, written notice to the borrowers of whether flood insurance was available and without maintaining a record of whether the borrowers received such notices from the bank at all.
K. Michael Robbins, Spencer Savings’ president and CEO, said the bank wrote loans last year for six mobile homes in Middleborough and made mistakes on paperwork related to the type of flood zone the mobile homes are in.
“...We might have had it in ‘flood zone A’ and it was supposed to be in ‘flood zone B,’” he said. “And we made the same mistake six times.”
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