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

Regulatory Relief

Disaster Relief
May 14, 2021

Summary:

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

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, tornadoes, and flooding caused significant property damage in areas of Tennessee from March 25, 2021 through April 3, 2021
  • The Federal Emergency Management Agency (FEMA) declared a federal disaster for selected areas affected in Tennessee on May 8, 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.

Additional Related Topics:

  • Lending
  • Investments
  • Publishing Requirements
  • Consumer Laws
1Modifications of existing loans should be evaluated individually to determine whether they represent troubled debt restructurings (TDRs). This evaluation should be based on the facts and circumstances of each borrower and loan, which requires judgment, as not all modifications are TDRs.
FIL-33-2021
Related Topics
Community Reinvestment Act
Contact(s)
Anthony Clark, (972) 761-2901

Last Updated: May 14, 2021