The Federal Deposit Insurance Corporation has issued disaster-related guidance setting out supervisory and regulatory relief intended to support recovery in parts of Washington affected by severe storms, straight-line winds, flooding, landslides, and mudslides. The guidance applies to all FDIC-supervised financial institutions and encourages banks to work constructively with affected borrowers, including by extending repayment terms, restructuring existing loans, or easing terms for new loans in a manner consistent with safe-and-sound banking practices. The measures are linked to the Federal Emergency Management Agency’s April 7, 2026 federal disaster declaration for selected areas impacted between December 5, 2025 and December 19, 2025, covering specified counties and tribal areas. The FDIC indicates it will not criticize prudent loan workouts, notes that qualifying community development loans, investments, and services may receive favorable Community Reinvestment Act consideration, and encourages monitoring and prudent efforts to stabilize securities and loans of municipalities in affected areas. It also signals flexibility on certain reporting and publication-related requirements where delays or compliance difficulties are disaster-related, and states that the San Francisco Regional Office will expedite requests to operate temporary banking facilities, with an initial telephone notice generally sufficient. The guidance also highlights 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 reminds institutions to evaluate loan modifications under applicable accounting standards, including ASC Subtopic 310-10 as amended by ASU 2022-02 and ASC Topic 326. FEMA may make additional disaster-area designations following further damage assessments.

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