The Federal Reserve Board, alongside the California Department of Financial Protection and Innovation, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency, issued interagency guidance setting out regulatory assistance for supervised financial institutions affected by the California wildfires and straight-line winds. The agencies indicate they will take the unusual circumstances into account in supervision and encourage institutions in impacted areas to continue meeting community financial services needs. The guidance supports prudent loan modifications for affected borrowers and indicates such efforts should not be subject to examiner criticism, while noting that modifications must be evaluated under U.S. generally accepted accounting principles and reported appropriately in call reports. Regulators also expect to expedite requests to operate temporary facilities where operational challenges persist, typically allowing an initial telephone notice to start the approval process, and they invite institutions to contact their primary regulator if disaster impacts compliance with publishing requirements for branch actions or with regulatory reporting. The agencies do not expect to assess penalties or take other supervisory action where institutions take reasonable steps but cannot fully meet reporting requirements due to the disaster. The statement also notes potential Community Reinvestment Act consideration for qualifying community development activity that revitalizes or stabilizes federally designated disaster areas, and encourages monitoring of municipal securities and loans affected by the event.

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