Banks affected by severe storm and flooding in areas of California last month were encouraged by their federal deposit insurer Friday to work with borrowers as they strive to recover.
“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,” the Federal Deposit Insurance Corp. (FDIC) said in a Financial Institution Letter (FIL).
The FDIC said banks may receive Community Reinvestment Act consideration “for community development loans, investments, and services in support of disaster recovery” and said it will also consider regulatory relief from certain filing and publishing requirements.