Federal Deposit Insurance Corporation offers supervisory relief for FDIC-supervised banks in Wisconsin disaster areas

The Federal Deposit Insurance Corporation has issued supervisory relief measures for all FDIC-supervised financial institutions to support recovery in parts of Wisconsin affected by severe storms, straight-line winds, flooding, and mudslides. The relief covers institutions operating in Milwaukee, Washington, and Waukesha Counties and includes supervisory flexibility for borrower assistance, certain reporting and publishing requirements, and expedited approvals for temporary banking facilities. Banks are encouraged to work constructively with affected borrowers, and the FDIC stated it will not criticize prudent loan term adjustments that are consistent with safe-and-sound banking practices. Institutions may receive favorable Community Reinvestment Act consideration for qualifying community development loans, investments, and services supporting disaster recovery in federally designated disaster areas, and are encouraged to monitor and take prudent steps to stabilize exposures to affected municipalities. For regulatory administration, institutions expecting delays in filing Reports of Income and Condition or other reports should notify the FDIC’s Chicago Regional Office, and institutions facing disaster-related difficulty meeting publishing requirements for branch closings, relocations, or temporary facilities are directed to contact the same office. The FDIC also highlighted available consumer law flexibility for principal dwelling-secured loans under Regulation Z where a bona fide personal financial emergency exists, and noted that the Chicago Regional Office will expedite requests to operate temporary banking facilities, with initial telephone notice generally sufficient and written notification to follow.