July 16, 2020 / Source: FDIC

Financial Institution Letter

Regulatory Relief:

Guidance to Help Financial Institutions and Facilitate Recovery in Areas of Michigan Affected by Severe Storms and Flooding

July 16, 2020  |  FIL-70-2020

Summary:

The FDIC has announced a series of steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Michigan affected by severe storms and flooding.

A copy of the guidance can be found on the FDIC's website.

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

Highlights:

• Severe storms and flooding have caused significant property damage in areas of Michigan from May 16, 2020 through May 22, 2020.
• A federal disaster for selected areas affected in Michigan was declared on July 9, 2020. 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 severe weather.
• 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 health of the local community and serve the long-term interests of the lending institution.
• Banks may receive favorable Community Reinvestment Act consideration for community development loans, investments, and services in support of disaster recovery.
• The FDIC also will consider regulatory relief from certain filing and publishing requirements.

Distribution:

FDIC-Supervised Institutions in Michigan

Suggested Routing:

Chief Executive Officer
Compliance Officer
Chief Lending Officer

Related Topics

Lending Investments
Publishing Requirements
Consumer Laws
Community Reinvestment Act