Steps aimed at giving regulatory relief to financial institutions and aid recovery in areas of the Northern Mariana Islands affected by Super Typhoon Yutu are detailed in a Financial Institution Letter issued Thursday by the Federal Deposit Insurance Corp. (FDIC).
A federal disaster for selected areas of the Northern Mariana Islands was declared on Oct. 24, according to FIL-69-2018, and additional designations may be made after damage assessments are completed in the affected areas. (A current list of designated areas is available at www.fema.gov.)
The FDIC says it’s encouraging banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by the severe weather.
Additionally, the agency letter says:
- Extending repayment terms, restructuring existing loans, or easing terms for new loans, if done in a manner consistent with sound banking practices, can contribute to the health of the local community and serve the long-term interests of the lending institution.
- Banks may receive favorable Community Reinvestment Act (CRA) consideration for community development loans, investments, and services in support of disaster recovery.
- The FDIC also will consider regulatory relief from certain filing and publishing requirements.
The letter also addresses monitoring of investments in municipal securities and loans affected by the severe weather; notification of the San Francisco Regional Office regarding expected delays in report filing, publishing, and other requirements; consumer waiver (regarding principal dwelling-secured loans, under Regulation Z) of the three-day rescission period in emergencies; and requests to operate temporary banking facilities.