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Financial Services Law Insights and Observations

Agencies issue guidance to institutions affected by storms in Gulf Coast and Hurricane Lane in Hawaii

Federal Issues OCC Department of Veterans Affairs Disaster Relief Mortgages Foreclosure Forbearance

Federal Issues

On September 5, the OCC issued a proclamation permitting OCC-regulated institutions to close their offices affected by Tropical Storm Gordon in the Gulf Coast Region. OCC Bulletin 2012-28 provides further guidance on natural disasters and other emergency conditions.

On August 30, the Department of Veterans Affairs issued Circular 26-18-17, requesting relief for homeowners impacted by Hurricane Lane in Hawaii. Among other things, the Circular (i) encourages loan holders to extend forbearance to borrowers in distress because of the storms; (ii) requests that loan holders establish a 90-day moratorium on initiating new foreclosures on loans affected by the major disaster; and (iii) waives late charges on affected loans. The Circular is effective until October 1, 2019.

Find continuing InfoBytes coverage on disaster relief here.