The National Credit Union Administration and the other banking regulators said Monday that they will be flexible in their regulation and supervision of financial institutions affected by the California wildfires and Hurricane Laura.
In a joint statement, the agencies said they want to encourage institutions “operating in the affected areas to meet the financial services needs of their communities.”
In the statement, the regulators said that financial institutions should work “constructively” with borrowers and pledged that prudent efforts to adjust or alter terms of loans will not be subject to examiner criticism.
They added that “the agencies recognize that efforts to work with borrowers in communities under stress can be consistent with safe-and-sound practices as well as in the public interest.”
The agencies promised to expedite any requests to operate in temporary facilities to provide more convenient services to people affected by the natural disasters.
The regulators indicated they will not assess penalties or take any other action against institutions that take reasonable steps to comply with regulatory reporting requirements.