FDIC announces Vermont disaster relief

Bank Regulatory Federal Issues FDIC Consumer Finance Disaster Relief Vermont

On July 19, the FDIC issued FIL-36-2023 to provide regulatory relief to financial institutions and help facilitate recovery in areas of Vermont affected by severe storms and flooding from July 7 through the present. The FDIC acknowledged the unusual circumstances faced by affected institutions and encouraged those institutions to work with impacted borrowers to, among other things: (i) extend repayment terms; (ii) restructure existing loans; or (iii) ease terms for new loans, provided the measures are done “in a manner consistent with sound banking practices.” Additionally, the FDIC noted that institutions “may receive favorable Community Reinvestment Act consideration for community development loans, investments, and services in support of disaster recovery.” The FDIC will also consider regulatory relief from certain filing and publishing requirements and instructed institutions to contact the New York Regional Office if they expect delays in making filings or are experiencing difficulties in complying with publishing or other requirements.