FDIC announces Arizona disaster relief

Bank Regulatory Federal Issues FDIC Disaster Relief Arizona Consumer Finance CRA Mortgages

On September 15, the FDIC issued FIL-41-2022 to provide regulatory relief to financial institutions and help facilitate recovery in areas of Salt River Pima-Maricopa Indian Community (Arizona) affected by severe storms from July 17-18. The FDIC acknowledged the unusual circumstances faced by institutions affected by the storms and suggested that institutions work with impacted borrowers to, among other things: (i) extend repayment terms; (ii) restructure existing loans; or (iii) ease terms for new loans to those affected by the severe weather, provided the measures are done “in a manner consistent with sound banking practices.” Additionally, the FDIC noted that institutions “may receive favorable Community Reinvestment Act consideration for community development loans, investments, and services in support of disaster recovery.” The FDIC will also consider regulatory relief from certain filing and publishing requirements.