FDIC Provides Regulatory Relief to Financial Institutions Affected by Hurricane Beryl in Texas

The Federal Deposit Insurance Corporation (FDIC) has announced a series of measures to offer regulatory relief to financial institutions impacted by Hurricane Beryl in various counties in Texas.

Recognizing the significant effects of Hurricane Beryl on both customers and operations of financial institutions in regions like Brazoria, Chambers, Fort Bend, and others, the FDIC aims to provide regulatory assistance to the institutions under its supervision.

In response to the challenges posed by the hurricane, the FDIC encourages depository institutions in the affected areas to fulfill the financial service needs of their communities.

One key aspect where the FDIC is focusing its efforts is lending. Financial institutions are advised to collaborate constructively with borrowers in the communities affected by Hurricane Beryl. The FDIC emphasizes that adjustments to existing loan terms in these regions should not attract examiner criticism.

Furthermore, the FDIC assures that when supervising institutions impacted by Hurricane Beryl, they will take into account the unique circumstances these institutions are currently facing.

Community Reinvestment Act (CRA) considerations are also highlighted in the relief efforts. Financial institutions stand to receive CRA credit for various community development activities that aim to rejuvenate or stabilize the disaster-stricken areas in their assessment regions.

Monitoring of municipal securities and loans affected by the hurricane is another area of concern. The FDIC encourages bankers to keep a close eye on local government projects and take necessary actions to safeguard their investments.

Financial institutions affected by Hurricane Beryl are urged to promptly inform the Dallas Regional Office if there will be delays in filing Reports of Income and Condition or other essential reports.

As the aftermath of Hurricane Beryl may impact compliance with publishing and other requirements related to branch operations, banks facing difficulties are advised to reach out to the Dallas Regional Office for guidance.

Consumer laws, particularly Regulation Z, provide options for consumers with principal dwelling-secured loans in times of emergencies like Hurricane Beryl. The regulation allows for modifications to certain periods under specific circumstances.

In light of damaged offices and the need for continued service provision, the Dallas Regional Office stands ready to expedite requests from institutions looking to operate temporary banking facilities to aid those affected by Hurricane Beryl.