On January 14, the DFPI, in collaboration with the FDIC, the Fed, the NCUA and the OCC (collectively, the “agencies”) issued a joint statement addressing the impact of the California wildfires and straight-line winds on financial institutions. The agencies encouraged banks and credit unions to work with affected borrowers by adjusting loan terms without facing examiner criticism.
The statement addressed operational challenges in reopening, allowing financial institutions to expedite requests for temporary facilities by providing initial notice via telephone. Institutions experiencing difficulties in meeting regulatory requirements should contact their regulators, who should consider their circumstances. Financial institutions may receive CRA consideration for community development activities that revitalize or stabilize federally designated disaster areas. Lastly, the agencies advised monitoring municipal securities and loans impacted by the disasters and taking prudent steps to stabilize such investments.
