Regulatory relief and favorable Community Reinvestment Act (CRA) consideration are among the steps the federal bank deposit insurer is activating to help those affected by severe storms, straight-line winds and floods affecting areas in Texas since July 2.
In a Financial Institution Letter (FIL) Friday, the Federal Deposit Insurance Corp. (FDIC) said the Federal Emergency Management Agency (FEMA) declared a federal disaster July 6 for those areas, adding that more areas may be designated over time.
The agency said:
- it encouraged banks to work with borrowers having difficulties beyond their control because of damage in affected areas;
- institutions 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;
- institutions may receive favorable CRA consideration for community development loans, investments, and services in support of disaster recovery;
- the agency would consider regulatory relief from certain filing and publishing requirements;
- its Dallas Regional Office “will expedite any request to operate temporary banking facilities by an institution in an affected area whose offices have been damaged or that desires to provide more convenient availability of services.”
More details are in the FIL.
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