Banking institutions operating in areas of New Mexico affected by wildfires ad straight-line winds can avail themselves of some specific regulatory relief measures announced Monday by the Federal Deposit Insurance Corp. (FDIC) in a Financial Institution Letter (FIL).
The Federal Emergency Management Agency (FEMA) declared a federal disaster for selected areas of New Mexico May 4 related to fires and winds that caused significant property damage beginning April 5 and continuing after.
As per its usual response in such events, the FDIC, through FIL-19-2022, is encouraging banks to work constructively with borrowers experiencing difficulties beyond their control (for example, by extending repayment terms, restructuring existing loans, easing terms for new loans).
It reminded that banks may receive favorable Community Reinvestment Act (CRA) consideration for community development loans, investments, and services in support of disaster recovery; and that the agency will consider regulatory relief from certain filing and publishing requirements.