Regulatory Relief for Financial Institutions in New Mexico Affected by Severe Storms, Flooding, and Landslides

Strategic Insights -

The Federal Deposit Insurance Corporation (FDIC) has announced a series of steps to provide regulatory relief to financial institutions in areas of New Mexico affected by severe storms, flooding, and landslides. The relief measures aim to facilitate recovery and encourage institutions to work constructively with borrowers experiencing difficulties due to damage in the affected areas. The FDIC recognizes the impact of these events on customers and operations of institutions in Lincoln County and will provide regulatory relief to institutions subject to its supervision.

Key Takeaways:

  • The FDIC has announced regulatory relief measures for financial institutions in areas of New Mexico affected by severe storms, flooding, and landslides.
  • The affected area in New Mexico is Lincoln County, where severe storms, flooding, and landslides caused significant property damage on June 23, 2025.
  • The FDIC encourages institutions to work constructively with borrowers in affected areas and will not criticize prudent efforts to adjust or alter terms on existing loans.
  • Institutions may receive favorable Community Reinvestment Act consideration for community development loans, investments, and services in support of disaster recovery.
  • The FDIC will consider regulatory relief from certain filing and publishing requirements due to damage in affected areas.
  • Institutions may receive CRA consideration for community development loans, investments, or services that revitalize or stabilize federally designated disaster areas in their assessment areas or in the states or regions that include their assessment areas.
  • Institutions are encouraged to monitor securities and loans of municipalities in affected areas and take prudent efforts to stabilize such investments.
  • FDIC-supervised institutions in affected areas should notify the Dallas Regional Office if they expect a delay in filing Reports of Income and Condition or other reports.
  • The FDIC will expedite any request to operate temporary banking facilities by an institution in an affected area whose offices have been damaged or that desires to provide more convenient availability of services.

Statistics:

  • The FDIC acknowledges the impact of severe storms, flooding, and landslides on customers and operations of institutions in Lincoln County, New Mexico.
  • The FDIC has declared a federal disaster for selected areas affected in New Mexico on July 22, 2025 (Source: FEMA).
  • The FDIC encourages institutions to work constructively with borrowers in affected areas, and will not criticize prudent efforts to adjust or alter terms on existing loans.
  • Institutions may receive favorable CRA consideration for community development loans, investments, and services in support of disaster recovery (Source: Interagency Questions and Answers Regarding Community Reinvestment).

Sources:

  • The Federal Deposit Insurance Corporation
  • The Federal Emergency Management Agency (FEMA)
  • Interagency Questions and Answers Regarding Community Reinvestment (PDF)