The Federal Deposit Insurance Corporation (FDIC) issued supervisory guidance outlining regulatory relief measures intended to support recovery in parts of Texas affected by severe storms and flooding and covered by a federal disaster declaration. The relief is directed at FDIC-supervised financial institutions operating in Cameron, Hidalgo, Starr, and Willacy Counties. The measures encourage institutions to work constructively with impacted borrowers, including extending repayment terms, restructuring existing loans, or easing terms on new loans consistent with safe-and-sound banking practices, and the FDIC indicated it will not criticize prudent efforts to adjust loan terms. Institutions may also receive favorable Community Reinvestment Act consideration for qualifying community development loans, investments, and services that support disaster recovery, and are encouraged to monitor and take prudent steps to stabilize exposures to municipalities in affected areas. The FDIC will consider relief for certain filing and publishing requirements, including potential delays in required reports where causes are beyond the institution’s control and difficulties meeting publication requirements tied to branch actions and temporary facilities; it also said it will expedite requests to operate temporary banking facilities. For principal dwelling-secured loans, the guidance notes that Regulation Z permits consumers to waive or modify the three-day rescission period when a bona fide personal financial emergency exists, subject to the regulation’s documentation requirements. Institutions expecting delays in Reports of Income and Condition or encountering disaster-related compliance challenges for publication and similar requirements are directed to contact the FDIC’s Dallas Regional Office. The FDIC also noted that FEMA’s May 21, 2025 federal disaster declaration may be expanded as damage assessments are completed.
Federal Deposit Insurance Corporation 2025-06-02
Federal Deposit Insurance Corporation provides supervisory and regulatory relief for FDIC-supervised institutions in Texas counties hit by severe storms and flooding
The FDIC issued guidance for regulatory relief to support recovery in Texas counties hit by storms and flooding. It encourages FDIC-supervised institutions to adjust loan terms and offers favorable Community Reinvestment Act consideration for disaster recovery. The FDIC will expedite requests for temporary banking facilities and consider relief for certain reporting requirements, noting potential expansions of the federal disaster declaration.