Steps aimed at providing regulatory relief to banking institutions and facilitate recovery in areas of California affected by wildfires – specifically, Lake, Monterey, Napa, San Mateo, Santa Cruz, Solano, Sonoma and Yolo counties – was issued Friday by the Federal Deposit Insurance Corp. (FDIC).
The agency, in a Financial Institution Letter (FIL-85-2020), highlighted that:
- The FDIC is encouraging banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by the wildfires.
- 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.
- Consumers with principal dwelling-secured loans may waive or modify the three-day rescission period under Regulation Z when facing a “bona fide personal financial emergency.”
The agency said its San Francisco Regional Office “will expedite any request to operate temporary banking facilities” by an institution whose offices are damaged or that wishes to make services more convenient for those affected by the wildfires.