Five federal and state agencies today issued a joint statement on their supervisory practices and expectations for financial institutions affected by the California wildfires. They also encouraged institutions operating in the affected areas to meet the financial services needs of their communities.
According to the statement, the agencies encourage financial institutions to work constructively with borrowers in communities affected by the wildfire, saying that prudent efforts to adjust or alter terms on existing loans are supported by the agencies and should not be subject to examiner criticism. They added that financial institutions may receive Community Reinvestment Act consideration for community development loans, investments or services that revitalize or stabilize disaster areas.
The agencies said they will expedite, as appropriate, any request to operate temporary facilities to provide availability of services to those affected by the wildfires. They also urged financial institutions to contact their primary regulator if the disaster is causing difficulties with regulatory compliance or filing paperwork, and that agency staff are ready to work with institutions experiencing problems.
The statement was signed by the Federal Reserve, FDIC, Office of the Comptroller of the Currency, National Credit Union Administration and the California Department of Financial Protection and Innovation.
