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The federal financial regulators, including the NCUA, this week issued interagency guidance related to supervisory practices for financial institutions that have been impacted by Hurricane Ida or the California wildfires. Through the statement, the agencies indicated that they intend to provide appropriate regulatory assistance to affected institutions related to several issues and instructed financial institutions operating in the affected areas to meet the financial services needs of their communities.

Lending

The agencies encouraged financial institutions to work constructively with borrowers in communities affected by Hurricane Ida or the California wildfires and have highlighted that "prudent efforts" to adjust or alter terms on existing loans in affected areas should not be subject to examiner criticism.

Temporary Facilities

In cases where operational challenges persist following the hurricane or wildfires, primary federal and/or state regulators will expedite requests to operate temporary facilities to provide a more convenient availability of services.

Publishing Requirements

The agencies recognized that the damage caused by the hurricane or wildfires may affect compliance with publishing and other requirements for branch closings, relocations, and temporary facilities and advises those experiencing disaster-related difficulties to contact their regulators.

Regulatory Reporting Requirements

Affected institutions that expect to encounter difficulty meeting the agencies' reporting requirements are encouraged to contact their primary federal and/or state regulators to discuss the situation further. According to the guidance, the agencies do not expect to assess penalties or take other supervisory action against those that take "reasonable and prudent steps to comply with the agencies' regulatory reporting requirements, if those institutions are unable to fully satisfy those requirements" due to Hurricane Ida or the California wildfires.

Investments

The regulators encouraged institutions to monitor municipal securities and loans that may be affected by Hurricane Ida or the California wildfires and urged institutions to take prudent efforts to stabilize such investments.

The statement also included guidance on the Community Reinvestment Act (CRA) for institutions subject to the rule. View the supervisory guidance on the NCUA's website here.

NAFCU will continue to support its member credit unions as communities across the country react to both Hurricane Ida and the California wildfires to ensure all have access to needed resources in the aftermath. The association also has specific resources and information for credit unions affected by disasters. A complete list of the affected disaster areas can be found here.