FDIC Disaster Recovery Regulatory Relief

As one of the most heavily regulated industries in the U.S., financial institutions—banks, credit unions, and mortgage lenders—face a unique set of challenges when natural disasters strike. Beyond the operational hurdles of reopening, they must continue serving their communities while maintaining strict compliance standards—even when their physical locations are inaccessible.

To help facilitate recovery, the FDIC often issues supervisory relief to lenders in federally declared disaster areas. On June 2, 2025, the FDIC released updated relief guidance for eight regions across six states recently affected by natural disasters.

Kentucky

• Region 1 (Federal disaster declaration issued on April 24): Anderson, Breckinridge, Bullitt, Butler, Calloway, Carroll, Christian, Clark, Daviess, Franklin, Garrard, Grayson, Hancock, Hardin, Hart, Henderson, Henry, Hopkins, Jefferson, Jessamine, Larue, Lincoln, McCracken, McLean, Meade, Mercer, Muhlenberg, Nelson, Ohio, Oldham, Owen, Pendleton, Powell, Trimble, Warren, Webster, and Woodford Counties.
• Region 2 (Federal disaster declaration issued on May 23): Caldwell, Laurel, Pulaski, Russell, Trigg, and Union Counties.

Arkansas

• Region 1 (Federal disaster declaration issued on May 8): Greene, Hot Spring, Independence, Izard, Jackson, Lawrence, Randolph, Sharp, and Stone Counties.
• Region 2 (Federal disaster declaration issued on May 21): Clark, Clay, Craighead, Crittenden, Desha, Fulton, Hot Spring, Jackson, Miller, Ouachita, Pulaski, Randolph, Saline, Sharp, St. Francis, and White Counties.

Mississippi (Federal disaster declaration issued on May 21): Covington, Grenada, Issaquena, Itawamba, Jefferson Davis, Leflore, Marion, Montgomery, Pike, Smith, and Walthall Counties.

Missouri (Federal disaster declaration issued on May 21): Bollinger, Butler, Camden, Carter, Franklin, Howell, Iron, Jefferson, Oregon, Ozark, Perry, Phelps, Reynolds, Ripley, St. Louis, Wayne, Webster, and Wright Counties.

Oklahoma (Federal disaster declaration issued on May 21): Cleveland, Creek, Lincoln, Logan, Oklahoma, Pawnee, and Payne Counties.

Texas (Federal disaster declaration issued on May 21): Cameron, Hidalgo, Starr, and Willacy Counties.

FDIC Regulatory Relief Measures

FDIC guidance includes specific provisions regarding lending, community development loans/investments, reporting requirements, publishing requirements, consumer laws, and temporary banking facilities.

Lending Flexibility
The FDIC encourages institutions to work constructively with borrowers and will not criticize prudent efforts to modify existing loan terms to assist those affected.

Community Reinvestment Act (CRA)
Institutions may receive CRA credit for community development loans, investments, and services that revitalize or stabilize disaster areas within their assessment areas or related regions.

Municipal Investments
Lenders are encouraged to monitor and stabilize municipal securities and loans in impacted areas.

Reporting Requirements
Institutions expecting delays in filing Reports of Income and Condition (Call Reports) should notify their FDIC regional office. The FDIC will consider delays caused by events beyond an institution’s control.

Publishing Requirements
If disaster-related damage impedes compliance with required notices for branch closures, relocations, or temporary facilities, institutions should contact their FDIC regional office for accommodations.

Consumer Protections
For principal dwelling-secured loans, Regulation Z allows consumers to waive the standard three-day rescission period in cases of a bona fide financial emergency. The consumer must submit a written statement explaining the emergency.

Temporary Banking Facilities
Requests to operate temporary facilities will be expedited. A phone call to the FDIC is sufficient to begin the process, with written notice to follow.

How AFR Services Supports Lenders

At AFR Services, we understand that accurate, timely information is essential for reducing lender liability and maintaining uninterrupted operations. In addition to providing the industry's most accurate flood determinations, we offer responsive support for both loan originations and servicing.

Our Lender Resources Library includes up-to-date guidelines, sample documents, and tools to help you manage insurance tracking and flood compliance—especially during critical recovery periods.

📌 Bookmark our Lender Resources page for ongoing updates and support.