OCC Encourages National Banks and Federal Savings Associations to Work with Customers Affected by Floods in Northeast States

WASHINGTON — The Office of the Comptroller of the Currency encourages national banks and federal savings associations to work with customers affected by floods in the northeast United States.

OCC Bulletin 2008-26 provides examples of steps national banks and federal savings associations may take to support customers affected by natural disasters. The OCC encourages national banks and federal savings associations to:

• Consider temporarily waiving late payment fees or early withdrawal of savings penalties for affected customers.
• Consider waiving or reducing ATM fees.
• Reassess the current credit needs of affected communities and help meet those needs by originating or participating in sound loans to rebuild damaged property.
• Work with borrowers affected by the disaster. Examiners will not criticize loan documentation deficiencies brought about by staffing shortages or business disruptions during a recovery period, and the agency realizes that adjusting or modifying payment terms may be the most reasonable option for some borrowers when done in a manner consistent with sound banking practices.
• Contact state and federal agencies, as well as other financial institutions, to help mitigate the effects of the disaster.

Under the provisions of the Community Reinvestment Act, the OCC will consider institution's support of disaster-recovery related activities that help to revitalize or stabilize a major disaster area during examinations of national banks and federal savings associations.

Related Link

• OCC Bulletin 2008-26