Financial Regulatory Bodies Offer Relief to Northern Mariana Islands After Devastating Typhoon
In response to the devastating effects of Super Typhoon Yutu, financial regulatory bodies in the Northern Mariana Islands are providing relief measures to help financial institutions and facilitate recovery efforts.
Regulatory Relief for Banks Affected by the Storm
The Federal Deposit Insurance Corporation (FDIC) has announced a series of steps aimed at providing regulatory relief to banks affected by the storm. The agency is encouraging lenders to work constructively with borrowers who have been impacted by the disaster, including:
- Extending repayment terms
- Restructuring existing loans
Financial institutions in the affected areas should also monitor municipal securities and loans that may be negatively impacted by the severe weather.
Additional Relief Measures
The FDIC will consider regulatory relief from certain filing and publishing requirements for banks experiencing difficulty complying with these regulations due to the storm. Additionally, financial institutions may receive favorable Community Reinvestment Act (CRA) consideration for activities that help revitalize or stabilize federally designated disaster areas, such as:
- Community development loans
- Investments
- Services
Relief Measures for Consumers
Consumers who have been impacted by the storm are also being offered relief measures. For example, Regulation Z provides consumers with an option to waive or modify the three-day rescission period on principal dwelling-secured loans in cases of “bona fide personal financial emergency.”
FDIC Hotline and Additional Resources
The FDIC has set up a hotline for banks and consumers seeking information and assistance at (415) 808-8263. The agency is also expediting requests to operate temporary banking facilities by institutions that have been damaged or are providing services to those affected by the storm.
For more information on these relief measures, please visit the FDIC’s website at www.fdic.gov.