Measures aimed at helping banking institutions and communities in Washington affected by severe storms, straight-line winds, and other damaging events in December was announced Tuesday by the federal bank deposit insurer.
The Federal Deposit Insurance Corp. (FDIC) said in a Financial Institution Letter (FIL) that severe storms, straight-line winds, flooding, landslides, and mudslides caused significant property damage in areas of Washington from Dec. 5-19, 2025. It said a federal disaster was declared April 7 by the Federal Emergency Management Agency (FEMA).
The FDIC said banks are encouraged to work constructively with borrowers experiencing difficulties beyond their control because of damage in affected areas. It also said those providing community development loans, investments, and services to support disaster recovery may receive favorable consideration under the anti-redlining Community Reinvestment Act (CRA).
Supervisory relief to be provided by the FDIC, the letter says, may include easing in certain reporting requirements; emergency waivers or modifications in the three-day rescission period for principal dwelling-secured loans under Regulation Z (Truth in Lending Act); and, among other things, expedited consideration of requests to operate temporary banking facilities if needed.
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