Banks are encouraged to work with struggling borrowers having difficulties because of wildfires and straight-line winds in areas of Oregon and can receive Community Reinvestment Act (CRA) credit for certain activities there, the Federal Deposit Insurance Corp. (FDIC) said Friday.
The FDIC, in a Financial Institution Letter, outlined steps aimed at providing regulatory relief to financial institutions and facilitate recovery in the affected areas. It noted that the Federal Emergency Management Agency (FEMA) declared a federal disaster for selected areas affected in Oregon on Tuesday and said that agency may make additional designations after damage assessments are completed in the affected areas.
The FDIC said banks that extend repayment terms, restructure existing loans, or ease terms for new loans 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.” It also said they may receive favorable 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.