Financial Crime World

FDIC Provides Regulatory Relief to Financial Institutions in Northern Mariana Islands After Super Typhoon Yutu

The Federal Deposit Insurance Corporation (FDIC) has announced a series of measures aimed at providing regulatory relief to financial institutions affected by Super Typhoon Yutu, which caused significant property damage in areas of the Northern Mariana Islands from October 24, 2018.

Regulatory Relief Measures

  • The FDIC is encouraging banks to work constructively with borrowers experiencing difficulties beyond their control due to the severe weather. This can include:
    • Extending repayment terms
    • Restructuring existing loans
    • Easing terms for new loans All of which must be done in a manner consistent with sound banking practices.
  • Financial institutions may receive favorable Community Reinvestment Act (CRA) 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.

Affected Areas

The affected areas in the Northern Mariana Islands are:

  • Rota
  • Saipan
  • Tinian
  • Northern Islands municipalities

Banking Guidance

Banks should:

  • Monitor municipal securities and loans affected by the severe weather and make prudent efforts to stabilize these investments.
  • Notify the San Francisco Regional Office if they expect a delay in filing Reports of Income and Condition or other reports. The FDIC will evaluate any causes beyond the control of a reporting institution when considering the length of an acceptable delay.

Compliance and Publishing Requirements

Banks experiencing disaster-related difficulties in complying with publishing and other requirements for branch closings, relocations, and temporary facilities under various laws and regulations should contact the San Francisco Regional Office.

Consumer Relief

For consumers’ principal dwelling-secured loans, Regulation Z provides an option to waive or modify the three-day rescission period when a “bona fide personal financial emergency” exists. To exercise this option, the consumer must provide the lender with a statement describing the emergency in accordance with the regulation.

Temporary Banking Facilities

The San Francisco Regional Office will expedite any request to operate temporary banking facilities by an institution whose offices have been damaged or that desires to provide more convenient availability of services to those affected by severe weather.