The Federal Deposit Insurance Corporation issued disaster-relief guidance describing supervisory and regulatory flexibilities to support recovery efforts following severe storms, straight-line winds, flooding, landslides, and mudslides in parts of West Virginia. The guidance applies to all FDIC-supervised financial institutions and encourages banks to work constructively with affected borrowers, including through loan term extensions and restructurings consistent with safe-and-sound banking practices. The affected areas are McDowell, Mercer, Mingo, and Wyoming Counties, and the Federal Emergency Management Agency declared a federal disaster for selected areas on February 26, 2025. The FDIC indicated that prudent loan accommodations in the impacted areas should not be subject to examiner criticism and noted that banks may receive favorable Community Reinvestment Act consideration for qualifying community development activities supporting disaster recovery. It also set expectations for monitoring municipal securities and loans impacted by the disaster, outlined how institutions should approach delays in regulatory reporting by notifying the Atlanta Regional Office, and stated it will consider relief from certain publishing requirements for branch-related actions where disaster impacts hinder compliance. The guidance also highlights consumer protections that may be relevant in the affected areas, including Regulation Z’s option to waive or modify the three-day rescission period for principal dwelling-secured loans in a bona fide personal financial emergency, and states that requests to operate temporary banking facilities will be expedited, with telephone notice generally sufficient initially. FEMA may make additional disaster-area designations after completing damage assessments.
Federal Deposit Insurance Corporation 2025-02-28
Federal Deposit Insurance Corporation outlines disaster-related supervisory relief for FDIC-supervised banks in four West Virginia counties
The FDIC issued disaster-relief guidance for institutions in West Virginia after severe weather. It encourages banks to assist affected borrowers through loan extensions and restructurings, assuring no examiner criticism for prudent accommodations. It also addresses regulatory reporting delays, potential Community Reinvestment Act benefits, and expedited processes for temporary banking facilities.