The Federal Deposit Insurance Corporation has issued supervisory guidance setting out regulatory relief measures for FDIC-supervised financial institutions affected by severe storms, flooding, and landslides in Lincoln County, New Mexico. The package is intended to support operational continuity and encourage prudent loan accommodations for impacted customers. The FDIC noted that the event began on June 23, 2025 and that the Federal Emergency Management Agency declared a federal disaster for selected areas on July 22, 2025. Supervisory expectations include not criticizing prudent efforts to extend repayment terms, restructure existing loans, or ease terms for new loans consistent with safe-and-sound banking practices, while reminding institutions to evaluate loan modifications under the applicable accounting standards (including ASC Subtopic 310-10 as amended by ASU 2022-02 and ASC Topic 326). The letter also highlights potential Community Reinvestment Act consideration for qualifying community development loans, investments, and services supporting disaster recovery, encourages monitoring of municipal securities and loans in affected areas, provides flexibility on certain reporting delays if institutions notify the Dallas Regional Office, and offers case-by-case relief for publishing and related requirements for branch actions and temporary facilities. For principal dwelling-secured loans, it points to Regulation Z’s option to waive or modify the three-day rescission period when a bona fide personal financial emergency exists, subject to the consumer providing the required statement. FEMA may make additional disaster-area designations after further damage assessments.
Federal Deposit Insurance Corporation 2025-07-30
Federal Deposit Insurance Corporation announces supervisory relief for FDIC-supervised institutions in New Mexico’s Lincoln County disaster area
The FDIC has issued guidance for institutions in Lincoln County, New Mexico, affected by severe weather. It includes regulatory relief for operational continuity, prudent loan accommodations, and expectations for evaluating loan modifications under accounting standards. It also highlights Community Reinvestment Act considerations and offers flexibility on reporting delays and branch actions.