WASHINGTON–The Worldwide Foundation for Credit Unions (WFCU) said it is offering its support to credit unions in Maui following the catastrophic fires that have led to more than 100 deaths and the destruction of most of Lahaina. Separately, federal and state regulators have also issued statements on practices related to the fires.
The foundation, which is the philanthropic arm of the World Council of Credit Unions, said it has been in contact with the National Credit Union Foundation and its CUAid disaster relief grant program, which is offering relief to credit union employees, volunteers and communities in Maui who were affected. Maui is home to 12 credit unions representing more than 30,000 members. To date, the credit unions have reported all employees are safe and accounted for.
The Hawaii CU League, which has made a $10,000 donation of its own to disaster relief, has also been working to coordinate disaster relief.
‘Concern for Community’
“In times of crisis, credit unions respond and leverage our principle of ‘Concern for Community’ with tangible resources and volunteer support where needed. I’m confident the global credit union community will rally behind our friends in Hawaii and show solidarity of support,” said Mike Reuter.
For additional information and to make donations, go here.
Regulators Issue Statements
Separately, NCUA has joined with other federal and state regulators in issuing a statement on supervisory practices in response to the wildfires on Maui.
In addition to NCUA, the Federal Reserve, FDIC, Hawaii Department of Commerce and Consumer Affairs’ Division of Financial Institutions, and the OCC said they “recognize the serious impact of the recent Hawaii wildfires on the customers and operations of many financial institutions and will provide appropriate regulatory assistance to affected institutions subject to their supervision. The agencies encourage institutions operating in the affected areas to meet the financial services needs of their communities.”
Specifically, the agencies addressed a number of issues, including:
Lending. The agencies said they are encouraging financial institutions to work “constructively with borrowers in communities affected by the Hawaii wildfires. 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.
“In making this evaluation, institutions should consider the facts and circumstances of each borrower and modification,” the agencies continued. “In supervising institutions affected by the Hawaii wildfires, the agencies will consider the unusual circumstances these institutions face. The agencies recognize that efforts to work with borrowers in communities under stress can be consistent with safe-and-sound practices as well as in the public interest.”
Temporary Facilities. The agencies said they “understand that many financial institutions face staffing, power, telecommunications, and other challenges in re-opening facilities after the Hawaii wildfires. 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 the Hawaii wildfires. In most cases, a telephone notice to the primary federal and/or state regulator will suffice initially to start the approval process, with necessary written notification being submitted shortly thereafter.”
Publishing Requirements. The agencies said they “understand that the damage caused by the Hawaii wildfires 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 Requirements. Institutions affected by the Hawaii wildfires 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 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 the Hawaii wildfires,” the agencies said.
The agencies said their respective 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.
Community Reinvestment Act (CRA). Financial institutions may receive CRA consideration for community development loans, investments, or services that revitalize or stabilize federally designated disaster areas in their assessment areas or in the states or regions that include their assessment areas, according to the agencies.
Investments. The agencies said institutions are being encouraged to monitor municipal securities and loans affected by the Hawaii wildfires.
“The agencies realize local government projects may be negatively affected by the disaster and encourage institutions to engage in appropriate monitoring and take prudent efforts to stabilize such investments,” the statement added.
For credit unions, additional guidance is available here.
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