#California wildfire regulators speak out#
Hot Topic Overview
Overview
California wildfires and straight-line winds have severely impacted the operations and customers of local financial institutions. Federal and state financial regulators have issued a joint statement indicating they will provide regulatory relief to affected institutions. The statement encourages financial institutions to work with borrowers in disaster-affected communities and support prudent adjustments or modifications to existing loan terms. Regulators will also consider the extraordinary circumstances facing affected institutions and expedite the approval process for temporary facilities. In addition, regulators encourage financial institutions to monitor municipal securities and loans in disaster-affected areas and exercise prudent efforts to stabilize such investments.
Ace Hot Topic Analysis
Analysis
California wildfires and straight-line winds have severely impacted customers and operations of many financial institutions. Federal and state financial regulators have issued a joint statement pledging appropriate regulatory relief to affected institutions. The statement encourages financial institutions to meet the financial service needs of impacted communities and work constructively with borrowers to prudently adjust or modify existing loan terms in affected areas. Regulators will consider the extraordinary circumstances facing affected institutions and will expedite any requests for temporary operating facilities to facilitate service to disaster victims, as appropriate. Furthermore, regulators will consider any difficulties that affected institutions may have in meeting reporting requirements and will not penalize institutions that take reasonable steps to comply with regulatory reporting requirements. Finally, regulators encourage financial institutions to monitor municipal securities and loans in affected areas and to make prudent efforts to stabilize such investments.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Financial regulators will provide regulatory relief to financial institutions impacted by California wildfires and straight-line winds, including easing loan modification requirements for impacted institutions, approving temporary facility operations, and providing compliance requirements for reporting.
Financial institutions are encouraged to engage in constructive collaboration with borrowers in affected areas and adjust loan terms based on individual circumstances. Such actions should not be subject to examiner criticism.
Financial regulators will consider the extraordinary circumstances faced by impacted institutions and expedite approval processes as appropriate, to ensure that people in the affected area have access to more convenient services.
Financial institutions may receive CRA consideration for Community Development loans, investments, or services to revitalize or stabilize disaster-stricken areas.