FDIC: Regulatory Relief – Guidance to Help Financial Institutions and Facilitate Recovery in Areas of Michigan Affected by Severe Storms

WASHINGTON, July 24 -- The Federal Deposit Insurance Corporation issued the following financial institution letter (No. FIL-52-2021):

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, flooding, and tornadoes.

A copy of the Guidance (https://www.fdic.gov/news/financial-institution-letters/2021/fil21052.html#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, flooding, and tornadoes caused significant property damage in areas of Michigan from June 25, 2021, through June 26, 2021.

* The Federal Emergency Management Agency (FEMA) declared a federal disaster for selected areas affected in Michiganon July 15, 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 Michigan

Suggested Routing:

Chief Executive Officer

Compliance Officer

Chief Lending Officer

Related Topics:

Lending

Investments

Publishing Requirements

Consumer Laws

Community Reinvestment Act