Following several severe storms and wildfires this summer, the Consumer Financial Protection Bureau today reminded financial institutions of a previously issued statement outlining its supervisory practices with regard to major disasters or emergencies. The statement reminds financial institutions of regulatory flexibilities available in these situations, and the bureau noted that “supervised entities can make use of existing regulatory flexibility where doing so would benefit consumers affected by a major disaster or emergency.
The statement—which the bureau said is nonbinding and does not impose any new or revise any existing recordkeeping, reporting or disclosure requirements—offers several examples of such flexibilities that apply to Regulations B, X and Z. It also recognizes that “supervised entities may themselves experience difficulties due to a major disaster or emergency. To that end, when conducting examinations and other supervisory activities, the bureau will consider the circumstances that supervised entities may face following a major disaster or emergency and will be sensitive to good-faith efforts to assist consumers.”
