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Guidance to Help Financial Institutions and Facilitate Recovery in Areas of West Virginia Affected by Severe Storms

June 01, 2021 / Source: FDIC

Financial Institution Letter

Regulatory Relief

 

June 1, 2021  |  FIL-38-2021

Summary:

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

A copy of the Guidance can be found on the FDIC’s website.

Statement of Applicability: This Financial Institution Letter (FIL) applies to all FDIC-supervised financial institutions.

Highlights:

  • Severe storms caused significant property damage in areas of West Virginia from February 27, 2021 through March 4, 2021.
  • The Federal Emergency Management Agency (FEMA) declared a federal disaster for selected areas affected in West Virginia on May 21, 2021. FEMA may make additional designations 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.
  • 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.
  • 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 West Virginia

Suggested Routing:

Chief Executive Officer
Compliance Officer
Chief Lending Officer

Related Topics:

Lending
Investments
Publishing Requirements
Consumer Laws
Community Reinvestment Act