ALEXANDRIA, Va.–NCUA has joined with other federal regulators and state financial regulators to collectively offer regulatory assistance in the wake of Hurricane Idalia.
“The agencies encourage institutions operating in the affected areas to meet the financial services needs of their communities,” stated the agencies, which, besides NCUA include the FCIC, the Federal Reserve, and the Office of the Comptroller of the Currency.
Specifically, the agencies said:
- Lending. “The agencies encourage financial institutions to work constructively with borrowers in communities affected by Hurricane Idalia. Prudent efforts to adjust or alter terms on existing loans in affected areas are supported by the agencies and should not be subject to examiner criticism. In accordance with U.S. generally accepted accounting principles, institutions should individually evaluate modifications of existing loans to determine whether they represent troubled debt restructurings or modifications to borrowers experiencing financial difficulty, as applicable.”
- Temporary Facilities. The agencies said they understand that many financial institutions face staffing, power, telecommunications, and other challenges in re-opening facilities after Hurricane Idalia. In cases in which operational challenges persist, the primary federal and/or state regulator will expedite, as appropriate, any request to operate temporary facilities to provide more convenient availability of services to those affected by Hurricane Idalia.
- Publishing Requirements. The agencies said they understand that the damage caused by Hurricane Idalia may affect compliance with publishing and other requirements for branch closings, relocations, and temporary facilities under various laws and regulations. Institutions experiencing disaster-related difficulties in complying with any publishing or other requirements should contact their primary federal and/or state regulator.
- Regulatory Reporting. Institutions affected by Hurricane Idalia that expect to encounter difficulty meeting the agencies’ reporting requirements should contact their primary federal and/or state regulator to discuss their situation. The agencies said they do not expect to assess penalties or take other supervisory action against institutions that take reasonable and prudent steps to comply with the agencies’ regulatory reporting requirements if those institutions are unable to fully satisfy those requirements because of Hurricane Idalia.
‘Ready to Work’
“The agencies’ staffs stand ready to work with affected institutions that may be experiencing problems fulfilling their reporting responsibilities, taking into account each institution’s particular circumstances, including the status of its reporting and recordkeeping systems and the condition of its underlying financial records,” the agencies said.
A complete list of the affected disaster areas can be found at https://www.fema.gov/disasters.