Severe storms and flooding in parts of Missouri have prompted an offer of regulatory assistance to banks to better help their customers in those areas, the federal insurer of bank deposits said in guidance issued Friday.
The Federal Deposit Insurance Corp. (FDIC) said that it encourages banks and other depository institutions it supervises in St. Charles and St. Louis Counties, and the city of St. Louis – areas heavily affected by the flooding — to meet the financial services needs of their communities.
The agency said it urges banks to – among other things — ramp up lending, earn Community Reinvestment Act (CRA) consideration for actions to revitalize or stabilize communities affected by the inundation, and stabilize municipal securities and loans.
The agency also said banks expecting a delay as a result of the flooding in publishing or in filing reports of income and condition or other reports should notify the FDIC Kansas City Regional Office. The agency also noted that for consumers’ principal dwelling-secured loans, Regulation Z provides consumers an option to waive or modify the three-day rescission period when a “bona fide personal financial emergency” exists. “To exercise this option, the consumer must provide the lender with a statement describing the emergency in accordance with the regulation,” the FDIC said.
Finally, the agency said its Kansas City office will “expedite any request” to operate temporary banking facilities by an institution whose offices have been damaged or that desires to provide more convenient availability of services to those affected by the severe storms and flooding. “In most cases, a telephone notice to the FDIC will suffice initially. Institutions may submit necessary written notification later,” FDIC said.