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FILs Regulatory Relief: Guidance to Help Financial Institutions and to Facilitate Recovery…

October 23, 2017 / Source: FDIC

Financial Institution Letters

FIL-52-2017
October 20, 2017

Regulatory Relief
Guidance to Help Financial Institutions and to Facilitate Recovery in Areas of California Affected by Wildfires

Printable Format: FIL-52-2017 - PDF (PDF Help)

Summary:

The FDIC has announced a series of steps intended to provide regulatory relief to financial institutions and to facilitate recovery in areas of California affected by wildfires.

Statement of Applicability to Institutions with Total Assets under $1 Billion: This Financial Institution Letter applies to all FDIC-supervised financial institutions.

Highlights:

  • Wildfires caused significant property damage in areas of California on October 8, 2017, and continuing.
  • A federal disaster for selected areas in California was declared on October 10, 2017. Additional designations may be made after damage assessments are completed in the affected areas. A current list of designated areas is available at www.fema.gov/.
  • The FDIC is encouraging banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by the wildfires.
  • Extending repayment terms, restructuring existing loans, or easing terms for new loans, if done in a manner consistent with sound banking practices, can contribute to the welfare of the local community and serve the long-term interests of the lending institution.
  • Banks may receive favorable Community Reinvestment Act (CRA) consideration for community development loans, investments, and services in support of disaster recovery.
  • The FDIC will consider regulatory relief from certain filing and publishing requirements.

Continuation of FIL-52-2017

Suggested Distribution:

FDIC-Supervised Banks (Commercial and Savings) in California

Suggested Routing:

Chief Executive Officer
Compliance Officer
Chief Lending Officer

Related Topics:

Lending
Investments
Publishing Requirements
Consumer Laws
Community Reinvestment Act

Contact:

Assistant Regional Director Louis Cheng at (415) 808-8263 or LCheng@fdic.gov

Note:

FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's website at https://www.fdic.gov/news/news/financial/2017/.

To receive FILs electronically, please visit https://www.fdic.gov/about/subscriptions/fil.html.

Paper copies may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (877-275-3342 or 703-562-2200).