Governor Lamont and Banking Commissioner Perez Announce Guidance to Financial Institutions on Providing Relief to Those Impacted By August's Severe Floods

October 21, 2024

Governor Lamont and Banking Commissioner Perez Announce Guidance to Financial Institutions on Providing Relief to Those Impacted By August's Severe Floods

SEYMOUR, CT - Governor Ned Lamont and Connecticut Banking Commissioner Jorge Perez today joined CEOs and executives of major banks and credit unions from across Connecticut at a news conference in Seymour to announce partnerships between state government and the financial services industry to provide relief and critical information to individuals and businesses impacted by the August 18, 2024, severe flooding in Fairfield County, Litchfield County, and New Haven County.

The Connecticut Department of Banking has issued guidance to state-chartered banks and credit unions, urging them to work with borrowers consistent with safe and sound banking practices and providing them with the necessary regulatory framework to do so. As they did during the COVID-19 pandemic, the state's banks and credit unions are prepared to assist customers and residents impacted by the floods, including through loan restructuring and fee accommodations. Anyone experiencing financial hardship due to the floods are encouraged to contact their financial institution to discuss the many programs and accommodations that are available to assist them.

The department is asking institutions to communicate with their partner companies, like servicers and collection agencies, so consumers and businesses know all possible options to assist them in recovery efforts. Similar guidance was also issued to licensed mortgage servicers in Connecticut, which the department also oversees.

"Over the last couple of months, both the state and the federal government, particularly with the support of FEMA and the Small Business Administration, have been providing financial support to individuals and businesses impacted by this severe storm, and I appreciate that Connecticut's financial institutions are also stepping up and recognizing that they play an important role in helping people and businesses recover," Governor Lamont said. "The old proverb, 'it takes a village,' certainly applies in situations like this, and I thank Connecticut's banks and credit unions for working with our administration to help provide relief to our state's residents who were impacted by this weather event."

"The Connecticut Department of Banking recognizes the challenges residents affected by these storms face as they begin to rebuild their lives and communities," Commissioner Perez said. "Our department is grateful that so many federally-chartered and Connecticut state-chartered banks and credit unions have stepped up to aid those in need. These financial Institutions are raising awareness of the programs they already have in place which are designed to assist customers experiencing natural disasters. I applaud their efforts to help residents and small businesses alike."

"With natural disasters increasing in frequency and severity, the partnership between government and the financial services industry has never been more important," Tom Mongellow, president and CEO of the Connecticut Bankers Association, said. "Connecticut's financial institutions are a cornerstone of their communities and they continue to play a key role in responding to challenging times."

The department's guidance also urges financial institutions and mortgage servicers to make themselves available to answer customer questions and make reasonable accommodations to assist victims.

"Any modifications to existing loans that are deemed prudent by financial institutions in light of the circumstances will not be subject to regulatory criticism," Commissioner Perez noted.

In addition, institutions lending to rebuild these communities will receive favorable Community Reinvestment Act (CRA) credits.

Anyone experiencing difficulty in reaching out to their mortgage services may contact the Connecticut Department of Banking at 860-240-8170 or [email protected].

Governor Lamont is also reminding residents that the deadline to apply for federal disaster assistance from the Federal Emergency Management Agency (FEMA) is November 19, 2024.

**Download: Guidance to state-chartered banks and credit unions on providing relief for August storm
**Download: Guidance to residential mortgage servicers on providing relief for August storm

Media Contacts

David Bednarz
Office of Governor Lamont
[email protected]
860-770-9792 (cell)

Matt Smith
Connecticut Department of Banking
[email protected]
203-996-1241 (cell)

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