WSFS agrees to pay $85K to Flood Insurance Program

In a Securities and Exchange 8-K filing dated August 12, 2019 WSFS Financial Corporation, the parent company of Wilmington Savings Fund Society, FSB (“WSFS Bank”), announced that WSFS Bank has accepted entry of a Stipulation and Consent to the Issuance of an Order for a Civil Monetary Penalty (“Consent Order”) from the Office of the Comptroller of the Currency.

The Consent Order asserts a violation of the Flood Disaster Protection Act and its implementing regulations, specifically timely notice of servicer’s identity after a transfer of servicing rights.

As part of WSFS Bank’s remediation efforts, management implemented a corrective action plan to ensure that FEMA designees (insurance providers) receive timely notice of servicing transfers for all loans transferred or sold that involve improved real property located in a flood zone.

This administrative deficiency, which has been addressed, did not result in any impact to Customers, the report noted.

In the interest of cooperation, WSFS Bank entered into the Consent Order and agreed to pay a civil monetary penalty in the amount of $85,265 payable to the National Flood Insurance Program.

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