The Real Deal Miami

Palm Beach bank fined for improper report on mortgage data

January 03, 2011 12:56PM

Palm Beach-based Lydian Private Bank & Trust was fined $18,000 for failing to properly report data on mortgage transactions to regulators. The bank — with $1.9 billion in assets — agreed to the civil monetary penalty from the Office of Thrift Supervision Dec. 21, after agreeing in September to a cease and desist order from the OTS that required it to raise capital. The OTS fined Lydian after its December 2009 examination found that the bank did not properly report borrower information under the Home Mortgage Disclosure Act. According to Rich Bursek, executive vice president at Lydian, the fine was part of what the bank agreed to when it signed the cease and desist order. He also noted that it is not a significant amount of money compared to the size of the institution. Lydian has a pending application by private investors to inject capital into the bank and acquire a substantial part of its stock. [SFBJ]