A set of regulatory relief measures has been deployed by the federal bank deposit insurer for financial institutions in areas of Washington affected by flooding and mudslides in November, according to a Financial Institution Letter (FIL) issued Wednesday.
The Federal Deposit Insurance Corp. (FDIC), in FIL-05-2022, noted the significant property damage in these areas from Nov. 13-15 of last year. A federal disaster was declared Jan. 5 by the Federal Emergency Management Agency (FEMA).
“The FDIC is encouraging banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by the severe weather,” the FDIC said.
The FIL details the specific types of relief available, among them flexibility to work with borrowers on loan payments due and the extension of new loans; and the prospect of Community Reinvestment Act (CRA) consideration for providing community development loans, investments, and services in support of disaster recovery.