Skip to main content
Menu Icon Menu Icon

InfoBytes Blog

Financial Services Law Insights and Observations

FDIC encourages relief for South Carolina borrowers affected by severe weather

Federal Issues FDIC Consumer Finance Disaster Relief South Carolina

Federal Issues

On May 7, the FDIC issued FIL-53-2020 to provide regulatory relief to financial institutions and help facilitate recovery in areas of South Carolina affected by severe storms, tornadoes, and straight-line winds from April 12 through April 13. In the letter, the FDIC encourages institutions to consider, among other things, (i) extending repayment terms; (ii) restructuring existing loans; or (iii) easing terms for new loans to borrowers affected by the severe weather, provided the measures “[are] 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.” Additionally, the FDIC notes that institutions may receive Community Reinvestment Act consideration for community development loans, investments, and services in support of disaster recovery. The FDIC states it will also consider relief from certain filing and publishing requirements.

Find continuing InfoBytes coverage on disaster relief guidance here.

Share page with AddThis