Reg relief in effect for banks in AR, CO areas affected by storms, fires

Relief for supervised institutions serving disaster-hit areas in Arkansas and Colorado – including potential Community Reinvestment Act (CRA) consideration – was detailed in two Financial Institution Letters (FILs) issued Wednesday by the Federal Deposit Insurance Corp. (FDIC).

Severe storms and tornadoes in areas of Arkansas from Dec. 10 to 11 led to a federal disaster declaration by the Federal Emergency Management Agency (FEMA) two days before Christmas. Wildfires and straight-line winds in areas of Colorado Dec. 30 drew a similar declaration on New Year’s Eve.

As per its usual disaster response, the FDIC said in both notifications that it is encouraging banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by these occurrences. That work may include, for example, extending repayment terms, restructuring existing loans, or easing terms for new loans “in a manner consistent with sound banking practices.”

Banks may receive favorable CRA consideration for community development loans, investments, and services in support of disaster recovery, the agency said, adding it will also consider regulatory relief from certain filing and publishing requirements.

FDIC FIL-01-2022 – Arkansas

FDIC FIL-02-2022 – Colorado