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Inactive Financial
Institution Letters
Regulatory
Relief Guidance to Help Financial Institutions and Facilitate Recovery in
Areas of Colorado Affected by Wildfires
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FIL-34-2013 July 31, 2013
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Summary:
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The FDIC has announced a series of
steps intended to provide regulatory relief to financial institutions and facilitate
recovery in areas of Colorado 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.
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Highlights:
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The Royal Gorge and Black Forest fires caused significant property damage in
areas of Colorado from June 11 through June 21, 2013.
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A federal disaster for selected areas in Colorado was declared on July 26,
2013. 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.
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The FDIC is encouraging banks to work constructively with borrowers
experiencing difficulties beyond their control because of damage caused by
the wildfires.
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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.
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Banks may receive favorable Community Reinvestment Act consideration for
community development loans, investments, and services in support of
disaster recovery.
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The FDIC also will consider regulatory relief from certain filing and
publishing requirements.
Continuation of FIL-34-2013
Suggested Distribution:
FDIC-Supervised Banks (Commercial and Savings) in Colorado
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 Joseph Meade at (972) 761-2068 or JMeade@fdic.gov.
Note:
FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's Web
site at www.fdic.gov/news/news/financial/2013/index.html.
To receive FILs electronically, please visit http://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).
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Financial
Institution Letters
FIL-34-2013
July 31, 2013
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Supervisory Practices Regarding Depository Institutions and Borrowers
Affected by Wildfires in Areas of Colorado
The Federal Deposit Insurance Corporation (FDIC) recognizes the serious impact
of wildfires on customers and operations of financial institutions in certain
areas of Colorado and will provide regulatory assistance to institutions subject
to its supervision. These initiatives will provide regulatory relief and
facilitate recovery. The FDIC encourages depository institutions in the affected
areas to meet the financial services needs of their communities.
The affected areas in Colorado are El Paso and Fremont counties.
Lending:
Bankers should work constructively with borrowers in communities
affected by the wildfires. The FDIC realizes that the effects of natural
disasters on local businesses and individuals are often transitory, and prudent
efforts to adjust or alter terms on existing loans in affected areas should not
be subject to examiner criticism. In supervising institutions affected by the
fires, the FDIC will consider the unusual circumstances they face. The FDIC
recognizes that efforts to work with borrowers in communities under stress can
be consistent with safe-and-sound banking practices as well as in the public
interest.
Community Reinvestment Act (CRA):
Financial institutions may receive CRA consideration for community
development loans, investments, or services that revitalize or stabilize
federally designated disaster areas in their assessment areas or in the states
or regions that include their assessment areas. For additional information,
institutions should review the Interagency Questions and Answers Regarding
Community Reinvestment at http://www.ffiec.gov/cra/pdf/2010-4903.pdf
at Section 12(g)(4)(ii). For help in identifying community development
activities to revitalize or stabilize a disaster area, financial institutions
can contact their regional Community Affairs Officer (see http://www.fdic.gov/consumers/community/offices.html).
Investments:
Bankers should monitor municipal securities and loans affected by the
wildfires. The FDIC realizes local government projects may be negatively
affected. Appropriate monitoring and prudent efforts to stabilize such
investments are encouraged.
Reporting Requirements:
FDIC-supervised institutions affected by the wildfires should notify
the Dallas Regional Office if they expect a delay in filing Reports of Income
and Condition or other reports. The FDIC will evaluate any causes beyond the
control of a reporting institution when considering the length of an acceptable
delay.
Publishing Requirements:
The FDIC understands the damage caused by the wildfires may affect
compliance with publishing and other requirements for branch closings,
relocations, and temporary facilities under various laws and regulations. Banks
experiencing disaster-related difficulties in complying with any publishing or
other requirements should contact the Dallas Regional Office.
Consumer Laws:
Regarding consumer loans, Regulation Z provides consumers an option to
waive or modify the three-day rescission period when a "bona fide personal
financial emergency" exists. To exercise this option, the consumer must provide
the lender with a statement describing the emergency in accordance with the
regulation.
Temporary Banking Facilities:
The Dallas Regional Office will expedite any request to operate
temporary banking facilities by an institution whose offices have been damaged
or that desires to provide more convenient availability of services to those
affected by wildfires. In most cases, a telephone notice to the FDIC will
suffice initially. Necessary written notification can be submitted later.
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