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Frequently Asked Questions for Financial Institutions Affected by the Coronavirus 

Disease 2019 (Referred to as COVID-19) – As of May 27, 2021 

Working with Borrowers 

1. Payment Accommodations. Would it be acceptable for a bank to offer borrowers affected 

by COVID-19 payment accommodations, such as allowing borrowers to defer or skip 

some payments or extending the payment due date. 

Yes. The FDIC encourages financial institutions to provide borrowers affected in a variety of 

ways by the COVID-19 outbreak with payment accommodations that facilitate their ability to 

work through the immediate impact of the virus. Such assistance provided in a prudent manner 

to borrowers facing short-term setbacks could help the borrower and a community to recover. 

The FDIC understands that effective loan accommodation programs may involve protracted 

resolutions, but all should be ultimately targeted toward loan repayment. 

 

Financial institutions may want to consider addressing any deferred or skipped payments by 

either extending the original maturity date or by making those payments due in a balloon 

payment at the maturity date of the loan. When deferring or skipping payments, providing 

borrowers with accurate disclosures that are consistent with federal and state consumer 

protection laws will help to avoid any misunderstandings relative to the changes in the terms. 

Financial institutions can call their FDIC Regional Office, which can assist them by discussing 

key considerations and regulations on payment accommodations and disclosures. 

 

2. Documentation. What type of documentation should financial institutions maintain 

relative to providing an accommodation to a borrower affected by COVID-19? 

Financial institutions should maintain appropriate documentation that considers borrowers’ 

payment status prior to being affected by COVID-19, and borrowers’ payment performance 

according to the changes in terms provided by the payment accommodation. Documentation 

could also include the borrowers’ recovery plans, sources of repayment, additional advances on 

existing or new loans, and value of the collateral. 

 

3. Reporting Delinquent Loans. Do loans that receive payment accommodations have to be 

reported as delinquent or non-performing? 

Borrowers who were current prior to becoming affected by COVID-19 and then receive 

payment accommodations as a result of the effects of COVID-19 generally would not be 

reported as past due. Each financial institution should consider the specific facts and 

circumstances regarding its payment accommodations for borrowers affected by COVID-19 

in determining the appropriate reporting treatment in accordance with generally accepted 

accounting principles (GAAP) and regulatory reporting instructions. Past due reporting 

status in regulatory reports should be determined in accordance with the contractual terms of 

a loan, as its terms have been revised under a payment accommodation or similar program 

provided to an individual customer or across-the-board to all affected customers. 
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Accordingly, if all payments are current in accordance with the revised terms of the loan, the 

loan would not be reported as past due. 

For loans subject to a payment deferral program on which payments were past due prior to the 

borrower being affected by COVID-19, it is the FDIC’s position that the delinquency status 

of the loan may be adjusted back to the status that existed at the date of the borrower became 

affected, essentially being frozen for the duration of the payment deferral period For example, 

if a consumer loan subject to a payment deferral program was 60 days past due on the date of 

the borrower became affected by COVID-19, an institution would continue to report the loan 

in its regulatory reports as 60 days past due during the deferral period (unless the loan is 

reported in nonaccrual status or charged off). 

 

4. [As of 4/14/2020] Troubled Debt Restructurings (TDRs). When does a payment 

accommodation become a TDR? 

Modifications of loan terms do not automatically result in TDRs, and, as described below, 

institutions generally do not need to categorize COVID-19-related modifications as TDRs. 

According to U.S. generally accepted accounting principles (GAAP), a restructuring of a debt 

constitutes a TDR if the creditor, for economic or legal reasons related to the debtor’s financial 

difficulties, grants a concession to the debtor that it would not otherwise consider.1

Under Section 4013 of the CARES Act, banks may elect not to categorize loan modifications 

as TDRs if they are (1) related to COVID-19; (2) executed on a loan that was not more than 30 

days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the 

earlier of (A) 60 days after the date of termination of the National Emergency or (B) December 

31, 2020. For all other loan modifications, the agencies have confirmed with staff of the 

Financial Accounting Standards Board (FASB) that short-term modifications made on a good 

faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not 

TDRs. This includes short-term (e.g., six months) modifications such as payment deferrals, fee 

waivers, extensions of repayment terms, or other delays in payment that are insignificant.2

Borrowers considered current are those that are less than 30 days past due on their contractual 

payments at the time a modification program is implemented. 

Examiners will exercise judgment in reviewing loan modifications, and will not automatically 

adversely risk rate credits that are affected by COVID-19. Regardless of whether 

modifications result in loans that are considered TDRs or are adversely classified, agency 

 

1 The TDR designation is an accounting categorization, as promulgated by the FASB and codified in Accounting 

Standards Codification (ASC) Subtopic 310-40, Receivables – Troubled Debt Restructurings by Creditors (ASC 310- 

40). 

2 According to ASC 310-40, factors to be considered in making this determination, which could be qualitative, are 

whether the amount of delayed restructured payments is insignificant relative to the unpaid principal or collateral value 

of the debt, thereby resulting in an insignificant shortfall in the contractual amount due from the borrower, and 

whether the delay in timing of the restructured payment period is insignificant relative to the frequency of payments 

due under the debt, the debt’s original contractual maturity, or the debt’s original expected duration. 
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examiners will not criticize prudent efforts to modify the terms on existing loans to affected 

customers. Please refer to interagency supervisory guidance,3 which provides more 

information on TDRs. 

5. TDR Categorization. Will FDIC examiners make banks categorize all loan modifications 

related to COVID-19 events as a TDR? 

No. The FDIC continues to encourage financial institutions to work with borrowers who may 

be impacted by COVID-19, by offering to modify, extend, suspend, or defer the repayment 

terms. FDIC examiners have been directed to exercise significant flexibility in reviewing 

credits that are impacted by COVID- 19 and will work with financial institutions relative to 

any reporting issues. Please refer to interagency supervisory guidance,4 which provides more 

information on TDRs. 

 

6. Accommodations for Loans Guaranteed by the Small Business Administration. Can 

financial institutions provide payment accommodations to borrowers whose loans are 

guaranteed by the SBA? 

Financial institutions can provide payment accommodations that modify, extend, suspend, or 

defer the repayment terms on SBA-guaranteed loans to borrowers affected by COVID-19. 

While the majority of payment accommodations do not require SBA approval, financial 

institutions should determine what types of modifications require the SBA’s approval. More 

information regarding the SBA’s programs is available at https://www.sba.gov/.

7. Nonaccrual Status, Allowance for Credit Losses (ACL), Allowance for Loan and Lease 

Losses (ALLL), and Charge-offs. Do loans that receive payment accommodations have to 

be reported as nonaccrual, reflect appropriate ACL or ALLL, and be charged off? 

Each financial institution should refer to the applicable regulatory reporting instructions, as 

well as its internal accounting policies, in determining whether to report loans with 

accommodations to customers affected by COVID-19 as nonaccrual assets in regulatory 

reports. (See also the response to questions 3 and 5). Each institution should maintain an 

appropriate allowance allocation for these loans, considering all information available prior to 

filing its reports about their collectability. As information becomes available that indicates a 

specific loan will not be repaid, institutions should preserve the integrity of their internal loan 

grading methodology and maintain appropriate accrual status on affected credits. Financial 

institutions should refer to the charge-off guidance in the instructions for the Consolidated 

Reports of Condition and Income. 

 

3 See at https://www.fdic.gov/news/news/financial/2020/fil20036.html. 4 See at https://www.fdic.gov/news/news/financial/2020/fil20036.html.
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Operational Issues 

1. Alternative Service Options. In an effort to protect employees and customers, can a 

financial institution limit access to branch offices, such as by limiting access to the use of 

the drive- up window? 

Yes. Financial institutions can consider alternative service options to provide access to 

financial services. Financial institutions may want to remind customers of the various ways 

they can access banking services without physically coming to a facility, such as managing 

their accounts online, performing transactions at an automated teller machine (ATM), using 

telephone banking, or accessing a mobile banking application. Financial institutions could also 

provide information about how to use electronic payments, bill pay, and mobile remote deposit 

capture services. 

 

Providing regularly updated information about the operating status of the bank, branch offices, 

remote access facilities, and mobile and online services as pandemic conditions evolve could 

be helpful to customers. Posting this information on the institution’s website, providing 

recorded information on its customer support lines, and pushing notifications out to customers 

that have signed up for alerts are just some of the ways institutions could help customers. 

 

2. Filing Applications. Does the FDIC require financial institutions impacted by COVID- 19 

to file applications for temporary office closures? 

No. The FDIC does not require an application to temporarily close a facility due to staffing 

challenges or to take precautionary measures. For example, some institutions may wish to 

limit foot traffic within a branch and provide services only through the drive-through lanes. 

The FDIC supports flexible approaches and encourages financial institutions to maintain a safe 

environment for their employees, reduce disruptions to their customers, provide alternative 

service options when practical, and reopen affected facilities when it is safe to do so. 

 

However, financial institutions should check with their state regulator to determine whether 

state laws and regulations require applications to be filed. While no official application is 

required by the FDIC, affected financial institutions are encouraged to notify their primary 

federal and state regulator and their customers of temporary closure of an institution’s facilities 

and the availability of any alternative service options as soon as practical. 

 

3. Difficulties Filing Reports. Will the FDIC give some forbearance to financial institutions 

experiencing difficulties in meeting regulatory reporting requirements? 

The FDIC’s staff stands ready to work with financial institutions that may experience 

challenges fulfilling their reporting responsibilities, taking into account each financial 

institution’s particular circumstances. The FDIC encourages institutions affected by COVID19 to take reasonable and prudent steps to comply with regulatory reporting requirements to 

the extent possible, and to contact their Regional Office if they are unable to do so. 
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4. First Quarter 2020 Regulatory Report Filings. The effects of COVID-19 may affect the 

ability of financial institutions to submit timely and accurate regulatory reports for 

March 31, 2020. These reports include bank Reports Condition and Income (Call 

Reports). What approach does the FDIC expect to take in situations where institutions 

affected by COVID-19 expect to encounter difficulty completing their March 31, 2020, 

regulatory reports? 

The FDIC understands that financial institutions may need additional time to submit certain 

regulatory reports in light of staffing priorities and disruptions caused by the COVID-19. The 

FDIC will not take action against any institution for submitting its March 31, 2020, Reports of 

Condition and Income (Call Reports) after the respective filing deadline, as long as the report is 

submitted within 30 days of the official filing date. FDIC-supervised institutions are encouraged 

to contact the FDIC in advance of the official filing date if they anticipate a delayed submission.5

5. First Quarter 2020 Regulatory Reporting Disclosure. Is there an ability for a financial 

institution to disclose additional information in its regulatory reports about the 

consequences of the impacts of COVID-19? 

Yes, the FDIC notes that for financial institutions that file Call Reports, the management of 

such financial institutions may, if it wishes, submit a brief narrative statement on the amounts 

reported in the Call Report. This optional narrative statement will be made available to the 

public, along with the publicly available data in the Call Report. This statement has long been 

available for the use of financial institutions that are required to file a Call Report. Financial 

institutions may wish to comment on certain financial consequences to their institutions 

resulting from the effects of COVID-19 in the optional narrative statement. Institutions can 

refer to the General Instructions to the Call Report Instructions for more information. 

6. Sales of Held-to-Maturity Securities. If a financial institution affected by the impact of 

COVID-19 sells investment securities that were classified as "held to maturity" (HTM) to 

meet its liquidity needs, will that financial institution's intent to hold other investment 

securities to maturity be questioned? 

Under normal circumstances, the sale of any HTM investment would call into question an 

institution's intent to hold its remaining HTM investments to maturity. However, ASC Section 

320-10-25 indicates that events that are isolated, nonrecurring, and unusual for the reporting 

enterprise that could not be reasonably anticipated may cause an enterprise to sell or transfer an 

HTM debt security without necessarily calling into question its intent to hold other HTM debt 

securities to maturity. ASC Section 320-10-25 specifically states that extremely remote 

disaster scenarios should not be anticipated by an entity in deciding whether it has the positive 

intent and ability to hold a debt security to maturity. 

Accordingly, in this situation, the sale of any HTM investment security would not necessarily 

call into question the bank’s intent to hold its remaining HTM investment securities until 

 

5 See March 25, 2020 Federal Financial Institutions Examination Council release, Financial Regulators Highlight 

Coordination and Collaboration of Efforts to Address COVID-19 https://www.ffiec.gov/press/pr032520.htm.
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maturity. Financial institutions are encouraged to maintain documentation memorializing the 

intent and purpose of transactions involving the sale of HTM investment securities. 

7. First Quarter 2020 Allowance for Loan and Lease Losses or Allowances for Credit Losses. 

How should financial institutions with borrowers affected by the effects of COVID-19 

determine the appropriate amount to report for their allowance for loan and lease losses 

(ALLL) or allowances for credit losses (ACLs), if applicable, in their first quarter 

regulatory reports? 

For financial institutions that have not adopted FASB Accounting Standards Update (ASU) 

No. 2016-13, “Measurement of Credit Losses on Financial Instruments,” with loans to 

borrowers impacted by the effects of COVID-19, it may be difficult at this time to determine 

the overall effect that the situation will have on the collectability of these loans. Many of these 

financial institutions will need time to evaluate their individual borrowers, assess the 

repayment capacity, and other available sources. 

For its first quarter regulatory reports, management should consider all information available 

prior to filing the report about the collectability of the financial institution’s loan portfolio in 

order to make its best estimate of probable losses within a range of loss estimates, recognizing 

that there is a short time between the beginning effects of COVID-19 and the required filing 

date for the first quarter regulatory report. Consistent with GAAP, the amounts included in the 

ALLL in first quarter regulatory reports for estimated credit losses incurred as a result of the 

effects of COVID-19 should include those amounts that represent probable losses that can be 

reasonably estimated. As financial institutions are able to obtain additional information about 

their loans to borrowers affected by COVID-19, estimates of the effect of COVID-19 on loan 

losses could change over time and revised estimates of loan losses would be reflected in 

financial institution’s subsequent regulatory reports. 

For financial institutions that have adopted FASB ASU No. 2016-13, with financial assets 

impacted by the effects of COVID-19, it may also be difficult at this time to determine the 

overall effect that the situation will have on the collectability of these assets. Many of these 

financial institutions will need time to evaluate their collective assessments on the net amount 

expected to be collected. 

For its first quarter regulatory reports, management should consider all information available 

prior to filing the report about the collectability of the financial institution’s financial assets in 

order to make a good faith estimate on the net amount expected to be collected. Furthermore, 

management should ensure the measurement of expected credit losses includes forwardlooking information, such as reasonable and supportable forecasts, in assessing the 

collectability of financial assets. The FDIC expects financial institutions to make good faith 

efforts to include its best estimate of expected credit losses within a range of expected loss 

estimates, recognizing that there is a short time between the beginning effects of COVID-19 

and the required filing date for the first quarter regulatory report. 

Consistent with GAAP, the amounts included in the ACL in first quarter regulatory reports for 

expected credit losses as a result of the effects of COVID-19 should include those amounts that 

represent expected credit losses over the remaining contractual term of the financial asset, 
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adjusted for prepayments. As financial institutions are able to obtain additional information 

about their financial assets affected by COVID-19, estimates of the effect of COVID-19 on 

credit losses could change over time and revised estimates of credit losses would be reflected 

in financial institution’s subsequent regulatory reports. 

8. Security. How should a bank handle customers wearing masks coming into a branch? It 

may be difficult to distinguish between a customer and a bank robber. 

The FDIC encourages financial institutions to provide appropriate training to staff and to take 

appropriate measures to maintain the security of their staff as well as their customers. Local 

law enforcement should be contacted whenever staff is concerned about individuals on bank 

premises. 

 

9. Community Bank Leverage Ratio (CBLR) Election. Should financial institutions 

considering whether to make their CBLR election, delay their CBLR election? 

The decision to elect the CBLR rests with financial institutions. Financial institutions will 

reflect their CBLR election on the March 31, 2020 Reports of Condition and Income (March 

Call Reports). The decision to elect CBLR for the March Call Report is not binding, and 

may be reversed in a subsequent quarter. Financial institutions that meet the qualifying 

criteria can elect the CBLR in future Call Reports. 

Further, the agencies have issued interim final rules that temporarily lower the CBLR to 8 

percent during 2020 and then provide a gradual transition back to 9 percent in 2022. 

Financial institutions should consider the temporary change in the level of the CBLR when 

determining their election.

 

10. Real Property Inspections. How should financial institutions respond to COVID-19 

related issues relative to inspections of real property? 

Financial institutions should consult with appraisers and other persons performing real estate 

inspections about alternative arrangements if the inspector cannot access the interior of a 

property due to concerns related to COVID-19. 

 

11. Interior Inspection Alternatives. What alternative options are available in lieu of 

obtaining an interior inspection for real estate secured loans due to concerns related to 

COVID-19? 

Responses to COVID-19 related questions6 provided by The Appraisal Foundation note that the 

Uniform Standards of Professional Appraisal Practice (USPAP) address situations where 

access to the interior of a property may not be feasible. USPAP permits an appraiser to make 

an extraordinary assumption about the interior of a property due to health concerns or other 

 

6 See at http://www.appraisalfoundation.org/iMIS/TAF/Coronavirus_and_Appraisers.aspx. Refer to USPAP Standards 

Rule 1-2, Standards Rule 2-2, and Advisory Opinion 2 for more information. 
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emergency conditions, such as the COVID-19 pandemic. Appraisers may have a variety of 

reasonable bases for an extraordinary assumption, including, but not limited to: 

• Determining an interior inspection is not needed because the appraiser has a reasonable 

basis for an extraordinary assumption and its use still results in a credible analysis. 

• Having conducted a prior inspection of the property in the recent past. 

• Obtaining an affidavit and/or pictures from the borrower regarding the interior. 

 

12. Real Property Appraisals. How should COVID-19 related issues be addressed in 

appraisal reports? 

Financial institutions should consult with appraisers about how to address any short-term, 

temporary reduction in the income stream produced by income-producing real estate that has 

been affected by COVID-19. 

13. [4/14/2020] Updated Valuation Information. Do financial institutions need to obtain 

updated valuation information for real estate related transactions when granting a shortterm loan modification to a borrower affected by COVID-19? 

No. Loan modifications, extensions, or similar arrangements, such as those that may be 

provided in connection with mortgage forbearances required under Sections 4022 and 4023 of 

the CARES Act, do not require appraisals under the agencies’ appraisal regulations if the 

transaction is wholly or partially insured or guaranteed by a federal agency or governmentsponsored enterprise (GSE), such as Fannie Mae or Freddie Mac. Such transactions would 

instead be subject to the valuation standards required by the agency or GSE. Relatedly, the 

federal financial institutions regulatory agencies’ appraisal regulations generally would not 

require an appraisal for this type of transaction, as their appraisal regulations do not require an 

appraisal for a transaction involving an existing extension of credit at the lending institution 

(i.e., subsequent transactions) if there is not a new advance of funds, other than funds necessary 

to cover reasonable closing costs. 

 

Rather, an evaluation is permitted in lieu of an appraisal under those circumstances. The 

federal financial institutions regulatory agencies’ appraisal regulations also permit an 

evaluation for extensions of credit at the lending institution if there has been no obvious and 

material change in market conditions or physical aspects of the property that threatens the 

adequacy of the real estate collateral protection after the transaction, even with advancement of 

new funds. Note additionally that a loan modification that only entails a decrease in the 

interest rate or a single extension of a limited or short-term nature would not be viewed as a 

subsequent transaction, and as such, not require an evaluation.7

 

 

7 Interagency Guidelines on Appraisals and Evaluations. See 75 FR 77450, at 77464-77465 (December 10, 2010), 

available at https://occ.gov/news-issuances/federal-register/2010/75fr77450.pdf.

 
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14. [4/14/2020] Alternative Signature Processes. With regard to Part 363 Annual Reports and 

Notifications of Late Filings, can financial institutions submit documents with email 

authorization instead of the traditional wet signatures? 

Yes, it is acceptable for financial institutions to use alternative methods to sign Part 363 

Annual Reports and Notifications of Late Filing, such as email authorization and typing the 

name of the individual or individuals signing the reports. However, financial institutions 

should retain copies of Parts 363 Annual Reports and Notifications of Late Filing with original 

signatures. 

 

For more information regarding electronic submissions, refer to FIL-71-2016, Electronic Filing 

of Part 363 Annual Reports and Other Reports and Notices, which addresses filing Part 363 

Annual Reports with the FDIC using FDIC Connect – Supervisory Business Center (FCXSBC). 

 

15. [4/14/2020] Real Estate Loans in Excess of Loan-to-Value (LTV) percentages. How will 

the FDIC view refinanced real estate loans with an advancement of new funds to 

borrowers affected by COVID-19 whose LTV exceeds supervisory LTV limits? 

The FDIC recognizes the COVID-19 pandemic may have a negative impact on the market 

value of real estate collateral for loan renewal and refinancing requests from existing, 

creditworthy borrowers seeking to obtain additional funds from the transaction. Such 

transactions may result in exceptions to the supervisory LTV limits listed in the Interagency 

Guidelines for Real Estate Lending Policies, unless they meet certain criteria, including that 

the transaction was part of a prudent loan workout plan.8

An institution’s board of directors is responsible for establishing standards for the review and 

approval of LTV exception loans, including those due to COVID-19. Such standards include 

reporting all such LTV exceptions to the board at least quarterly. Within these reports, financial 

institutions may find it useful to separately identify transactions that exceed the supervisory LTV 

limits due to COVID-19, such as for creditworthy borrowers’ liquidity needs. 

 

The FDIC recognizes that the LTV ratio is only one of several pertinent credit factors to be 

considered when prudently underwriting a real estate loan. The FDIC will not criticize 

financial institutions that exceed the supervisory LTV limits for real estate secured loans, if 

extended in a safe and sound manner to creditworthy borrowers affected by COVID-19. 

 

16. [4/14/2020] Risk weighting multifamily loans. Can multifamily loans continue to receive a 

50 percent risk weight after they are restructured or modified consistent with the 

Interagency Statement on Loan Modifications and Reporting for Financial Institutions 

Working with Customers Affected by the Coronavirus (Loan Modification Statement)?9

 

8 See at FDIC: https://www.fdic.gov/regulations/laws/rules/2000-8700.html. 9 See at https://www.fdic.gov/news/news/press/2020/pr20038a.pdf.
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Yes. The Loan Modification Statement states that financial institutions’ efforts to work with 

borrowers with prudently underwritten one-to-four family mortgages whose loans are not past 

due or carried in nonaccrual status will not be considered restructured or modified for the 

purposes of the agencies’ respective risk-based capital rules. This approach applies to 

multifamily loans of $1 million or less that qualify as residential mortgage exposures.

10 For 

other multifamily loans, the criteria to “not be restructured or modified” is not included within 

the requirements for a statutory multifamily mortgage11 to receive a 50 percent risk weight 

under the risk-based capital rules. However, a statutory multifamily loan will receive a 150 

percent risk weight if it is 90 days past due or on nonaccrual status. Institutions should refer 

to the Interagency Statement for additional information on when a loan is considered past due 

or on nonaccrual status. 

 

17. [4/14/2020] Debt Service Coverage (DSC) Ratio for Statutory Multifamily Mortgages. 

How should financial institutions calculate the DSC ratio to determine whether a loan to a 

borrower affected by COVID-19 continues to meet the definition of a statutory multifamily 

mortgage after it has been modified? 

The definition of a statutory multifamily mortgage12 requires a DSC of at least 120 percent for 

a fixed-rate loan, or 115 percent for an adjustable rate loan. The DSC ratio is based on the 

property’s annual net operating income (NOI) for the most recent fiscal year and the loan’s 

annual debt service. Because there typically is a lag before a financial institution receives a 

property’s financial statements, the DSC ratio usually is based on the prior year’s operating 

results. Therefore, any accommodation provided to a statutory multifamily mortgage borrower 

affected by COVID-19 in 2020 will generally not affect eligibility as a statutory multifamily 

mortgage until 2021. For determining whether the DSC ratio meets the eligibility criteria in 

2021, financial institutions can use the property’s NOI from 2020, taking into account any 

accommodations that modify, extend, suspend, or defer the payments to borrowers affected by 

COVID-19. 

 

18. [4/14/2020] Risk-Weight for Balloon Payments. If a financial institution adds the option of 

including a deferred payment as a balloon payment at maturity, does that jeopardize it 

receiving a 50 percent risk weight? 

The option to include the deferred payment as a balloon payment will not jeopardize the 50 

percent risk weight if it is prior to the 30-year maturity (so that the loan would otherwise 

amortize to $0 by the end of 30 years.) 

 

 

10 Residential mortgage exposure is defined in part 324.2 of the FDIC Rules and Regulations. 11 Statutory multifamily mortgage means a loan secured by a multifamily residential property that meets the requirements 

under section 618(b)(1) of the Resolution Trust Corporation Refinancing, Restructuring, and 

Improvement Act of 1991, and that meets the criteria for Statutory Multifamily Mortgage in part 324.2 of the FDIC Rules 

and Regulations. 

12 The criteria are within the definition of statutory multifamily mortgage in part 324.2. Loans that meet the 

definition of statutory multifamily mortgage are eligible for 50 percent risk weight per section 32(g). 
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19. [04/23/2020] Fraudulent Economic Impact Checks. We are worried about individuals 

presenting fraudulent IRS economic impact checks. What can a bank do to reduce the 

risk of accepting a fraudulent paper check? 

The United States Treasury Department has informed us that economic impact checks will look 

similar to IRS tax refund checks. They can be verified using the Treasury Check Verification 

Application (https://tcva.fiscal.treasury.gov/approot/tcva/TCVA_Welcome.html), provided that 

the financial institution has a valid routing transit number, check number and check amount. 

This site also provides a description of Treasury Check Security Features. 

Financial institutions should be alert to increased attempts of fraud. Federal law enforcement 

agencies are observing a rise in economic relief fraud and expect the fraud attempts to continue 

throughout the pandemic. 

20. [04/23/2020] Accounts for Unbanked Consumers. Can banks open accounts for unbanked 

consumers to receive economic relief payments? 

Yes. The FDIC is supportive of efforts to bring unbanked consumers into the banking 

system, and encourages financial institutions to consider opening such accounts so that these 

consumers can receive their economic impact payments safely and quickly. Financial 

institutions should take a risk-based approach in assessing individual customer relationships. 

There is significant flexibility built into the existing rules. The customer identification 

program (CIP) rule13 asks for the collection of name, address, date of birth and a taxpayer 

identification number when an account relationship is established. 

This information enables a bank to form a reasonable belief that it knows the true identity of 

each customer wanting to establish an account relationship. Under the CIP rule, a bank must 

have risk-based procedures for verifying a customer’s identity. Banks may use various 

methods to verify a customer’s identity including verification through information such as a 

utility bill or public databases. 

 

13 31 CFR 1010.220.
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Consumer Compliance and Protection 

1. [As of 4/14/2020] Reporting to Credit Reporting Agencies. How should financial 

institutions report loan payment histories to the credit reporting agencies when the 

institution and borrower have agreed to a payment accommodation? 

For institutions that report credit payment histories to a credit reporting agency, Section 4021 

of the recently enacted Coronavirus Aid, Relief, and Economic Security Act (CARES Act)14

amends the Fair Credit Reporting Act15 to provide relief from negative credit reporting for 

those who receive payment modifications or forbearances because of the coronavirus 

pandemic. Under Section 4021, during the period of January 31, 2020 until 120 days after the 

end of the national coronavirus emergency declaration, if a financial institution makes an 

accommodation for one or more payments, and the borrower fulfills the terms of the 

accommodation, the institution should report the account as current. However, if an account 

was delinquent before the coronavirus pandemic the financial institution can continue to report 

the account as delinquent unless the account is brought current. Further, Section 4021 does not 

apply to accounts that have been charged off. 

The credit reporting agencies have provided guidance regarding the credit reporting coding 

options available for furnishers of credit report information during disasters and specifically 

the COVID-19 emergency. Furnishers are encouraged to review the options available to 

determine the appropriate coding policy for their borrowers. 

The Consumer Financial Protection Bureau (CFPB)16 released a statement reiterating that 

financial institutions must follow the provisions of the CARES Act.17 Refer to the CFPB for 

more information regarding the FCRA. In addition, the FDIC encourages financial institutions 

to provide borrowers affected by the COVID-19 outbreak with payment accommodations that 

facilitate their ability to work through the immediate impact of the virus. 

 

2. Cash Management. With the financial market disruptions caused by COVID-19, some 

customers may seek to deposit their money into FDIC-insured deposit accounts, while 

other customers may feel the need to withdraw large amounts of cash. What can a 

financial institution do to protect customers looking to hold onto large sums of cash? 

Financial institutions may want to remind customers about the safety of their money in a 

financial institution that is FDIC-insured and discuss deposit insurance coverage of the 

customer’s accounts. Closely monitoring deposits, withdrawals, and the availability of cash 

can ensure financial institutions are prepared to meet customers’ cash needs. 

 

 

14 See at https://www.congress.gov/bill/116th-congress/senate-bill/3548/text. 15 See at https://www.congress.gov/bill/116th-congress/senate-bill/3548/text. 16 See at https://www.consumerfinance.gov/. 17 See at https://files.consumerfinance.gov/f/documents/cfpb_credit-reporting-policy-statement_cares-act_2020-04.pdf.
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3. [4/10/2020] Community Reinvestment Act (CRA) Credit. Will all COVID-19 activity count 

toward CRA, or just those activities directed at LMI individuals and census tracts? 

The agencies issued the Joint Statement on CRA Consideration for Activities in response to the 

COVID-19 (FIL-19-2020) (CRA Statement) on March 19, 2020. The CRA Statement 

discusses categories and examples of activities related to COVID-19 that will be given 

consideration under the CRA. Those include retail banking services and retail lending 

activities in a financial institution's assessment areas that are responsive to the needs of low- to 

moderate-income (LMI) individuals, small businesses, and small farms affected by COVID-19 

consistent with safe and sound banking practices. In addition, qualifying community 

development (CD) activities will receive consideration. These would include CD activities that 

help to revitalize or stabilize LMI and distressed or underserved non-metropolitan middle 

income census tracts as well as those that support community services targeted to LMI 

individuals. 

 

4. [4/10/2020] Eligible CRA Activities. Does delivering food and stocking shelves count 

during the COVID-19 crisis? 

The CRA Statement discusses categories and examples of activities related to COVID-19 that 

will be given consideration under the CRA. One of the examples provided in FIL-19-2020 for 

consideration as a community development activity is investment or service activities that 

support provision of food supplies and services for low- and moderate-income individuals or 

communities. The donation of food to support LMI individuals, such as through a food bank, 

would fall within the qualified investment category. Volunteer hours to help at a food bank 

that are not financial-related are not considered community development services. 

 

5. [4/10/2020] CRA Credit for Assisting LMI Employees. Can a financial institution receive 

positive CRA consideration for assisting its LMI employees? 

The CRA Statement discusses categories and examples of activities related to COVID-19 that 

will be given consideration under the CRA. Provided the financial institution’s employees are 

LMI and live within the financial institution’s assessment area or broader statewide or regional 

areas (for community development activities), the financial institution can receive CRA 

consideration for activities beyond the scope of the normal employment relationship that 

benefit the employees during this pandemic, given that those activities match the permissible 

retail or community development activities under the regulations and the interagency questions 

and answers related to CRA. Nothing in the guidance differentiates between LMI individuals 

who are non-employees of the bank and those who are employed at the financial institution. 

Consideration would be dependent on the activity on a case-by-case basis. 

 

6. [04/17/2020] CRA Credit for Assistance Outside Assessment Area (AA). Will a bank receive 

CRA credit for assisting COVID-19 impacted businesses if those businesses are located 

outside of a financial institution's AA? 
 14 

The agencies will provide favorable CRA consideration for retail banking services, retail 

lending activities, and community development activities in a financial institution’s assessment 

areas that are responsive to the needs of low- and moderate-income individuals, small 

businesses, and small farms affected by the COVID-19 emergency and that are consistent with 

safe and sound banking practices. See March 19, 2020 Interagency Statement (Interagency 

Statement). 

The agencies will also give favorable consideration to community development activities 

located in a broader statewide or regional area that includes a bank’s CRA assessment area and 

that help to stabilize communities affected by the COVID-19 emergency, provided that the 

bank is responsive to the community development needs and opportunities that exist in its own 

assessment area(s). See Interagency Statement. 

Under the existing CRA regulations, a bank may receive community development credit for 

loans that have a primary purpose of community development (as defined in §345 12(g) of the 

CRA regulations) and that have not been reported for consideration in the bank’s assessment 

area as a home mortgage, small business, small farm, or consumer loan. 

 

7. [05/20/2020] COVID-19 CRA Disaster Areas. Are COVID-19 affected states and 

jurisdictions considered CRA designated disaster areas? 

The Coronavirus Disease (COVID-19) national emergency raises unique needs for 

revitalization and stabilization activities that generally differ from those typically undertaken in 

response to natural disasters or other emergencies. The Federal Emergency Management 

Agency (FEMA) has issued major disaster declarations that include assistance for emergency 

protective measures (Public Assistance Category B) for all 50 states, the District of Columbia, 

and certain U.S. territories in connection with COVID-19. Areas identified for Category B 

assistance are not normally considered designated disaster areas under CRA because of the 

temporary nature of the activities covered under this category of assistance. However, the 

agencies believe that it is appropriate to recognize such COVID-19 designated disaster areas 

due to the circumstances of this national pandemic; therefore, the agencies will grant 

consideration for activities that revitalize or stabilize these areas by protecting public health 

and safety,18 particularly for low- or moderate-income individuals, low- or moderate-income 

geographies, or distressed or underserved nonmetropolitan middle-income geographies. 

Examples of qualified activities include loans, investments, or community development 

services that support: 

 

• Emergency medical care, including medical facility services and supplies, temporary 

medical facilities, and enhanced medical/hospital capacity;

 

• Purchase and distribution of personal protective equipment;

 

• Provision of emergency food supplies; or

 

18 https://www.fema.gov/news-release/2020/03/19/coronavirus-covid-19-pandemic-eligible-emergency-protectivemeasures 
 15 

 

• Assistance to state, tribal, territorial, or local governments for emergency management and 

to support communications of general health and safety information to the public.

8. [05/20/2020] CRA Activities in COVID-19 Disaster Areas. How long will the Board of 

Governors of the Federal Reserve System, the Office of the Comptroller, and the Federal 

Deposit Insurance Corporation (agencies) grant consideration for activities that revitalize 

or stabilize COVID-19 designated disaster areas? 

The March 19, 2020 Joint Statement19 indicates that it is effective through the six-month period 

after the national emergency declaration is lifted, unless extended by the agencies. With 

specific reference to COVID-19 related revitalization and stabilization activities needed to help 

protect public health and safety during the health emergency, as FEMA has issued the major 

disaster declarations described in the Response to the question – Are COVID-19 affected states 

and jurisdictions considered CRA designated disaster areas? – the agencies believe that a time 

period of six months after any particular disaster declaration is lifted is an appropriate time 

period for consideration of such activities. 

9. [05/20/2020] CRA Activities. How will activities undertaken in response to COVID-19 

that are responsive to community needs be considered in CRA examinations? 

In light of the declaration of a national emergency, and consistent with the Joint Statement on 

CRA Consideration for Activities in Response to COVID-19, the Board of Governors of the 

Federal Reserve System, the Office of the Comptroller, and the Federal Deposit Insurance 

Corporation (agencies) are clarifying that banks will receive favorable CRA consideration for 

community development activities that are responsive to community needs and conducted in 

response to COVID-19. Qualifying activities include those that support community services 

targeted to low- or moderate-income individuals, economic development by meeting the “size” 

and “purpose” tests, affordable housing for low- or moderate-income individuals or families, or 

that help to revitalize or stabilize low- or moderate-income geographies or distressed or 

underserved nonmetropolitan middle-income geographies. As described in the Response to the 

question - Are COVID-19 affected states and jurisdictions considered CRA designated disaster 

areas? - qualifying activities also include those that help to stabilize COVID-19 designated 

disaster areas by protecting public health and safety, particularly for low- or moderate- income 

individuals or geographies. 

 

10. [05/20/2020] CRA Activities. Can a bank receive consideration for activities related to the 

COVID-19 emergency and that are conducted on a nationwide basis? 

The COVID-19 emergency has had a significant health and economic impact that extends 

beyond many banks’ assessment areas. Banks that are responsive to community development 

 

19 https://www.federalreserve.gov/supervisionreg/caletters/CA%2020-4%20Attachment.pdf;

https://www.fdic.gov/news/news/financial/2020/fil20019a.pdf; https://occ.gov/news-issuances/bulletins/2020/bulletin2020-19.html.
 16 

needs and opportunities in their assessment areas will receive favorable consideration for 

community development activities located in a broader statewide or regional area that includes 

the banks’ CRA assessment area(s). Banks that are responsive to needs and opportunities in 

the broader statewide or regional areas that include bank assessment areas may also receive 

consideration for activities outside those broader statewide or regional areas provided that 

those activities help to revitalize or stabilize COVID-19 designated disaster areas by protecting 

public health and safety as described in the Response to the question - Are COVID- 19 affected 

states and jurisdictions considered CRA designated disaster areas? - activities that benefit lowor moderate-income individuals or geographies, distressed or underserved nonmetropolitan 

middle-income geographies, or small businesses and small farms will be considered 

particularly responsive. 

 

11. [05/20/2020] PPP CRA Considerations. Are bank loans made under the Paycheck 

Protection Program (PPP) eligible for CRA consideration? For PPP loans that are 

eligible community development loans, what is the appropriate community development 

purpose? 

Generally, loans, including PPP loans, in amounts of $1 million or less to for-profit businesses, 

or to nonprofit organizations that are secured by nonfarm, nonresidential real estate, are 

reported and considered as small business loans under the applicable retail lending test. PPP 

loans will be considered particularly responsive if made to small businesses with gross annual 

revenues of $1 million or less or to businesses located in low-or moderate-income geographies 

or distressed or underserved nonmetropolitan middle-income geographies. Participation in 

such loan programs could also receive consideration as innovative or flexible lending practices 

 

PPP loans in amounts greater than $1 million may be considered as community development 

loans if they also have a primary purpose of community development as defined under the 

CRA. Generally, loans to small businesses with gross annual revenues $1 million or less that 

create or retain jobs for low- or moderate-income individuals or in low- or moderate-income 

geographies, or that otherwise meet the economic development “size” and “purpose” tests, 

qualify as community development loans. Such loans may also qualify if they help to 

revitalize or stabilize low- or moderate-income geographies or distressed or underserved 

nonmetropolitan middle-income geographies. 

12. [03/03/2021] PPP CRA Considerations Community Development. Are PPP loans in 

amounts greater than $1 million that are also in low- or moderate-income geographies or in 

distressed or underserved nonmetropolitan middle-income geographies automatically 

considered to be community development activities? 

Yes, a PPP loan in amounts greater than $1 million in one of these geographies will be 

considered an eligible community development activity. Pursuant to the Interagency 

Questions and Answers Regarding Community Reinvestment,20 activities that revitalize or 

stabilize a low- or moderate income geography or a distressed or underserved 

nonmetropolitan middle-income geography help to attract new, or retain existing, jobs, 

 

20 See https://www.ffiec.gov/cra/qnadoc.htm.
 17 

businesses, or residents. The PPP was enacted and signed into law in order to support 

smaller businesses and retain jobs. 

13. [05/20/2020] Reporting PPP Loans. How should Paycheck Protection Program (PPP) 

loans be reported on Call Reports? 

PPP loans are Small Business Administration (SBA) 7(a) loans. Banks should follow Call 

Report requirements for reporting PPP loans based on the loan type, amount, and collateral, as 

applicable. 

 

14. [03/03/2021] CRA PPP Reporting. Should banks report, and should examiners give CRA 

consideration to, PPP loans that have been rescinded or returned under the SBA’s safe 

harbor? 

No. Banks should neither report these loans on their CRA loan register nor will examiners 

consider the loans in their CRA evaluations of banks during the applicable time period, as these 

loans ultimately had no impact on the relevant business, its employees, or its community. 

15. [05/20/2020] CRA PPP Reporting. For Paycheck Protection Program (PPP) loans 

reported as small business loans (Type 01), with loan amounts of $1 million or less, made 

to an existing bank customer, should a bank report revenue on the CRA loan register 

based on what it had previously gathered about that business? For a new PPP borrower, 

which has an unknown revenue, may banks use a revenue estimate and report it as 

having gross annual revenues of “1” (gross annual revenues of $1 million or less) or must 

they use a CRA revenue code of “3” (unknown/not used in credit decision).

Generally, a bank should rely on and report the gross annual revenues that it considered in 

making its credit decision. Loans for which the bank did not collect revenue information may 

not be included when evaluating a bank’s performance in lending to businesses and farms with 

gross annual revenues of $1 million or less unless the small business or small farm provides 

supplemental information or the bank has another source demonstrating the borrower’s 

revenue, such as information on existing customers. Banks that have access to an applicant’s 

gross annual revenue information may, but are not required to, report that information. When 

evaluating CRA performance, the Board of Governors of the Federal Reserve System, the 

Office of the Comptroller, and the Federal Deposit Insurance Corporation (agencies) will take 

into account the unique circumstances affecting borrowers and banks resulting from the 

COVID-19 emergency and will not penalize a bank for making a large volume of loans for 

which gross annual revenue information is not available. The agencies will also take into 

account a bank’s good faith efforts demonstrably designed to support low- and moderateincome individuals and small businesses and small farms and its efforts to comply with 

applicable consumer protection laws. 

 

16. [05/20/2020] PPP CRA Consideration. How will Paycheck Protection Program (PPP) 

loans be considered when evaluating the borrower and geographic distribution of loans 

and the distribution of loans inside and outside of bank assessment areas? 
 18 

PPP loans in amounts of $1 million or less will be considered when evaluating a bank’s 

performance under the applicable retail lending test. This includes the evaluation of 

performance based on the distribution of loans inside and outside of its assessment areas, by 

business size based on gross annual revenues, and across geographies of different income 

levels. The Board of Governors of the Federal Reserve System, the Office of the Comptroller, 

and the Federal Deposit Insurance Corporation (agencies) understand that this current 

environment presents unique challenges. Therefore, although performance may appear to be 

negatively affected, for example by a high level of out-of-assessment area lending, examiners 

will consider the information in context and evaluate it accordingly. That said, banks should 

continue to seek to meet the credit needs of their communities if making a significant amount 

of loans outside of their assessment areas. 

Additionally, an examiner’s review of the borrower distribution of retail lending is typically 

focused on activities within a bank’s assessment area(s). However, as noted in Q&A 

345.22(b)(2) & (3)—421, a bank may receive consideration for retail loans to low- or moderateincome individuals, small businesses, or small farms outside of their assessment area(s), 

provided that they have adequately addressed the needs of borrowers within their assessment 

area(s). 

17. [03/03/2021] PPP CRA Services. Can banks receive CRA service test consideration for 

processing Paycheck Protection Program (PPP) or other pandemic-focused loan 

applications and related servicing activity? 

 

The CRA regulatory criteria for the service test do not include loan processing and servicing 

activities for retail loans originated by a bank.22 Additionally, the agencies generally consider 

building new lending platforms and technical assistance provided to borrowers during a loan 

application process to be activities that banks engage in during the normal course of doing 

business. Therefore, the agencies will not extend CRA service test consideration for PPP-related 

activities. 

 

 The agencies do recognize the Paycheck Protection loan program is responsive to community 

credit needs. Therefore, these activities will be considered under the CRA lending test when 

evaluating flexible or innovative lending programs offered by the bank. 

 

18. [03/03/2021] PPP CRA Services. Due to the economic distress caused by the COVID-19 

pandemic, some banks have been: (a) waiving withdrawal penalties on certificates of deposit 

(CDs); (b) fulfilling early distribution requests regarding individual retirement accounts 

(IRAs); (c) allowing draws on home equity lines of credit (HELOCs) during the repayment 

periods; (d) increasing transaction limits; (e) eliminating overdraft fees; and (f) eliminating 

ATM fees. Will CRA community development service credit be given for these types of 

 

21 See Interagency Questions and Answers Regarding Community Reinvestment, 81 Fed. Reg. 48506 (July 25, 2016). 22 The retail service test criteria include the current distribution of branches, the bank’s record of opening and closing 

branches, the availability and effectiveness of alternate systems for delivering retail banking services, and the range of 

services provided. See 12 CFR __.24 (d) for details. 
 19 

actions during the pandemic? How should banks document these activities and the number 

of customers served by them? 

 The Joint Statement on CRA Consideration for Activities in Response to COVID-19 (Joint 

Statement) on March 19, 2020, explains that the agencies will provide favorable CRA 

consideration to retail banking services and retail lending activities in a bank’s assessment 

area(s) that are responsive to the needs of low- and moderate-income individuals, small 

businesses, and small farms affected by the pandemic and that are consistent with safe and 

sound banking practices. The Community Reinvestment Act (CRA) Consideration for 

Activities in Response to the Coronavirus Frequently Asked Questions (FAQs) include 

additional examples of such activities. 

 The waiving of ATM fees, overdraft fees, and early withdrawal penalties on CDs are 

examples of retail services considered responsive to the needs of low- and moderate-income 

individuals as explained in the Joint Statement. The waiving of a bank’s withdrawal fees on 

savings accounts is not included in the Joint Statement or other of these FAQs, but is another 

example of a responsive service. Allowing a low- or moderate-income individual to make 

draws from a HELOC during the repayment period could constitute a flexible lending 

practice. On the other hand, allowing a low- or moderate-income individual to make a 

withdrawal from an IRA, as allowed under the CARES Act,23 or to draw on a HELOC during 

the draw period are routine banking services and, as such, are not eligible for CRA 

consideration. 

Examiners will consider any relevant information a bank provides that demonstrates a service 

is responsive or tailored to the convenience and needs of its assessment area(s), particularly the 

convenience and needs of low- or moderate-income individuals. 

19. [03/03/2021] PPP CRA Services. Considering the challenge of providing in-person 

community development services during the COVID-19 pandemic, how will such services 

provided virtually by bank representatives be considered for CRA purposes?

 

 Historically, for CRA purposes, bank representatives have primarily provided community 

development services in-person. However, the agencies recognize that the COVID-19 

pandemic has limited banks’ ability to continue doing so. As an alternative to in-person 

services, the agencies will consider services provided virtually (e.g., Zoom, Microsoft Teams, 

WebEx, etc.) by bank representatives that have a primary purpose of community development 

and that are related to the provision of financial services. Examples of community 

development services provided virtually could include, but are not limited to, financial 

literacy programs or first-time homebuyer education sessions targeted to low- and moderateincome individuals and small business or small farm 

technical assistance sessions. 

 

23 See Coronavirus Aid, Relief, and Economic Security Act (CARES Act), 

https://www.congress.gov/116/bills/hr748/BILLS-116hr748enr.pdf.
 20 

Community development services provided virtually are qualified individually, by each 

event conducted and in consideration of the assessment area(s) benefitted. Therefore, if a 

bank representative conducts a financial counseling session to help people affected by 

COVID-19 virtually for primarily low- and moderate-income individuals in a single 

assessment area, the bank will receive credit for one community development service for the 

assessment area. Of note, a community development service provided virtually that reaches 

multiple assessment areas should be considered at either the state or institution level. For 

example, if a bank representative conducts a small business technical assistance session that 

is virtually attended by businesses nationwide, the community development service will be 

considered at the institution level. 

20. [05/20/2020] Main Street Lending Program. Are bank loans made under the Main Street 

Lending Program eligible for CRA consideration? 

A bank may receive CRA consideration for Main Street Lending Program loans that meet 

relevant CRA requirements. Specifically, small business loans, including Main Street Lending 

Program loans, in amounts of $1 million or less to for-profit businesses, or to nonprofit 

organizations that are secured by nonfarm, nonresidential real estate, are reported and 

considered as small business loans under the applicable CRA retail lending test. Main Street 

Lending Program loans will be considered particularly responsive if made to small businesses 

with gross annual revenues under $1 million or to businesses located in low-or moderateincome geographies or distressed or underserved nonmetropolitan middle- income geographies. 

Such loan programs could also receive consideration as innovative or flexible lending 

practices. 

Main Street Lending Program loans in amounts of greater than $1 million may be considered as 

community development loans if they also have a primary purpose of community development 

as defined under CRA. Generally, loans to small businesses with gross annual revenues of less 

than $1 million that create or retain jobs for low- or moderate-income individuals or in low- or 

moderate- income geographies, or that otherwise meet the economic development “size” and 

“purpose” tests, qualify as community development loans. Such loans may also qualify if they 

help to revitalize or stabilize low- or moderate-income geographies or distressed or 

underserved nonmetropolitan middle- income geographies. 

 

21. [05/20/2020] CRA Affordable Housing. The Joint Statement on CRA Consideration for 

Activities in Response to COVID-19 did not include a reference to affordable housing. 

Will examiners consider bank activities that help to maintain affordable housing for lowor moderate-income individuals, including homeowners or renters, as responsive to 

community needs during the COVID-19 emergency? 

Yes. Community development under CRA includes activities that promote affordable housing, 

including single-family and multifamily rental housing, for low- or moderate-income 

individuals or families. Activities that promote housing stability for low- or moderate-income 

renters who are experiencing financial hardship due to COVID-19 are considered particularly 

responsive to the unique challenges presented by the COVID-19 emergency. These activities 

include loan forbearance, reduced payments, loan modifications, or restructuring debt for 
 21 

residential rental property owners who in turn agree to offer rent relief to and suspend evictions 

for low- or moderate-income renters.

24 In addition, investments in or grants to intermediary 

organizations that provide housing support for low- or moderate-income individuals are 

considered responsive to community needs. 

Additionally, as the Joint Statement indicates, activities that promote stability for low- or 

moderate- income homeowners who are experiencing financial hardship due to COVID-19 are 

also considered particularly responsive to the unique challenges presented by the COVID-19 

emergency. These activities include loan forbearance or loan modifications for low- or 

moderate-income homeowners. These activities will receive favorable consideration when 

retail lending is evaluated.25

All activities must be undertaken in a manner consistent with safe and sound banking practices 

and applicable consumer protection laws. 

 

22. [05/20/2020] Job Losses. Will job loss or loss of income due to the COVID-19 emergency 

be considered when determining whether an individual or family is considered to be lowor moderate-income? 

CRA encourages activities that benefit low- or moderate-income individuals and families. This 

includes individuals and families who have recently become low- or moderate- income due to 

lost jobs, decreased hours, or furloughs that will reduce income due to the COVID-19 

emergency. 

 

23. [05/20/2020] Retail Banking Service Activities. What retail banking service activities will 

be considered particularly responsive to the needs of low- and moderate-income 

individuals due to the COVID-19 emergency? 

As the Joint Statement on CRA Consideration for Activities in Response to COVID-19 

explains, the Board of Governors of the Federal Reserve System, the Office of the Comptroller, 

and the Federal Deposit Insurance Corporation (agencies) encourage banks to work with 

affected individuals and communities, particularly those that are low- or moderate-income. 

Examples of services that are considered particularly responsive to the needs of low- or 

moderate-income individuals include cashing federal government stimulus checks at no cost to 

non-customers or waiving late fees and customer overdraft charges. 

 

24. [05/20/2020] Community Services. The Joint Statement on CRA Consideration for 

Activities in Response to COVID-19 highlights loans, investments, and services that 

support access to health care for low- and moderate-income individuals and communities. 

 

24 Suspension of evictions for tenants would cover instances involving non-payment of rent related to financial hardship 

caused by the COVID-19 emergency and instances involving evictions already in process prior to the emergency. 25 An intermediate small bank that is not a Home Mortgage Disclosure Act reporter would have the option to submit 

for consideration home mortgage loans with a primary purpose of providing affordable housing for low- or moderateincome individuals as a community development activity. 
 22 

Are there other community services that are particularly responsive to the needs of lowand moderate-income individuals during the COVID-19 emergency? 

 

Examples of community services that are responsive to the needs of low- and moderate-income 

individuals due to the COVID-19 emergency include but are not limited to: 

• Childcare for low- or moderate-income essential workers;

• Food banks;

• Shelters or programs for individuals facing homelessness or domestic violence;

• Alcohol or drug recovery programs; or

• Utility assistance programs.

25. [04/23/20] Non-customer Checks. Is a financial institution required to cash an Economic 

Impact paper check issued to a non-customer? 

No. As a general matter, a bank is under no legal duty to cash a check, even one drawn on the 

bank by an accountholder. However, the FDIC and other bank regulatory agencies have issued 

statements encouraging institutions to work with consumers and communities affected by 

COVID-19 developments. The FDIC recognizes that such efforts serve the long-term interests 

of communities and the financial system when conducted with appropriate management 

oversight and are consistent with safe and sound banking practices and applicable laws, 

including consumer protection laws. These efforts may include easing restrictions on cashing 

non-customer checks. For example, we understand some banks have voluntarily decided to 

cash non-customer’s economic impact checks without charging a fee. For more information on 

assisting consumers in light of COVID-19 developments, see the FDIC’s Statement on 

Financial Institutions Working with Customers Affected by the Coronavirus and Regulatory 

and Supervisory Assistance (FIL-17-2020), issued on March 13, 2020. 

Moreover, pursuant to the March 19, 2020, Joint Agency Statement on CRA Consideration for 

Activities in Response to COVID-19 (FIL-19-2020), institutions may receive CRA 

consideration for easing restrictions on cashing out-of-state and non-customer checks. The 

FDIC will favorably consider retail banking services and retail lending activities in a financial 

institution’s assessment areas that are responsive to the needs of low- and moderate-income 

individuals, small businesses, and small farms affected by COVID-19 and that are consistent 

with safe and sound banking practices. 

 

26. [04/23/2020] Offset of Deposits. Are Economic Impact payments subject to offset for 

charged-off loans or other obligations to the financial institution? 

The CARES Act does not restrict banks from using economic impact payment funds to pay 

consumers’ old debts, e.g., delinquent loans or overdraft or other fees, where permitted by 

applicable law. However, the FDIC and other bank regulatory agencies have issued statements 

encouraging institutions to work with consumers and communities affected by COVID-19. For 

more information on assisting consumers in light of COVID-19 developments, see the FDIC’s 
 23 

Statement on Financial Institutions Working with Customers Affected by the Coronavirus and 

Regulatory and Supervisory Assistance (FIL-17-2020), issued on March 13, 2020. 

COVID-19 related developments continue to evolve. We recommend that you monitor the U.S.

Treasury Department’s website in the event it issues any new information addressing the offset 

of economic impact payments. 

27. [05/21/2021] Garnishment. Are Economic Impact payments subject to garnishment? 

Congress passed into law three authorizations of economic impact payments (EIP). The limitations 

regarding the garnishment, reduction, and offset of EIP funds are dependent upon the legislation that 

authorizes the specific payments. 

The CARES Act of 2020 enacted on March 27, 2020, authorizes the first round of economic impact 

payments, referred to here as EIP1. EIP1 funds are not subject to collection of certain debts owed to 

the federal government and state governments and certain student loan debts. EIP1 funds may be 

garnished; for example, EIP1 funds may be offset or garnished pursuant to a court order to collect 

child support or by judgment creditors. 

The Consolidated Appropriations Act of 2021, enacted on December 27, 2020, authorizes a second 

round of economic impact payments, referred to here as EIP2. Like EIP1, EIP2 funds are not 

subject to collection for certain debts owed to the federal government and state governments and 

certain student loan debts. Additionally, according to the U.S. Treasury Department’s website, EIP2 

funds are exempt from garnishment. Of the three rounds of economic impact payments, only EIP2 

funds are explicitly protected from garnishment by judgment creditors. For child support, EIP2 

funds are not subject to offset, when paid as an advance, or state-issued garnishment orders. EIP2 

funds are specifically covered by the Treasury regulation that protects federal benefit payments from 

garnishment. Further, electronically-deposited EIP2 funds are encoded in a manner similar to such 

protected federal benefit payments (such as Social Security payments) to easily identify that these 

funds are to be protected from garnishment. Consumers that deposit EIP2 funds by paper check can 

subsequently request that the funds be exempt from garnishment, with certain exceptions. 

The American Rescue Plan Act of 2021 enacted on March 11, 2021, authorizes a third round of 

economic impact payments referred to here as EIP3. EIP3 funds are subject to fewer protections 

than EIP2 funds. EIP3 funds may be garnished. EIP3 funds are not subject to collection of certain 

debts owed to the federal government and state governments and certain student loan debts. 

According to the U.S. Treasury Department’s website, EIP3 funds are not subject to offset, when 

paid as an advance, for child support. 

We recommend that banks monitor the U.S. Treasury Department’s website in the event it issues any 

new information addressing garnishment, reduction, and offset protections regarding economic 

impact payments. Some states and local jurisdictions have suspended enforcement of certain 

garnishment orders, and banks are encouraged to monitor developments from local and state 

jurisdictions that may impact debt collection activities. 

 

28. [04/23/2020] Deposits into Closed Accounts. What should a financial institution do if an 

Economic Impact payment is direct deposited to an account that is closed? 
 24 

The payment must be returned. The Green Book, issued by the U.S. Department of Treasury’s

Bureau of Fiscal Service, is a comprehensive guide for financial institutions that receive ACH 

payments from and send payments (i.e. collections) to the federal government. As the National 

Automated Clearing House Association (NACHA) notes in its “ACH Network Rules

Pandemic-Related Frequently Asked Questions” (Updated April 16, 2020), according to the 

Green Book (page 4-2), if a U.S. Treasury payment is made to a closed account, the receiving 

depository financial institution (RDFI) should return the payment. The Green Book states in 

Chapter 4 that all ACH payments must be returned in accordance with the NACHA Operating 

Rules and Guidelines, including when an account is closed or does not exist. Most ACH 

returns to the IRS will result in a paper check being issued; therefore, RDFIs must make 

appropriate use of Return Reason Codes. 

29. [04/28/2020] Qualified Mortgage Status. Does providing a loan modification impact an 

existing loan’s qualified mortgage (QM) status? 

No. Mortgage originations are typically subject to the CFPB’s Ability to Repay and Qualified 

Mortgage Rule (ATR/QM). The ATR/QM rule does not apply when you alter the terms of an 

existing loan without refinancing it. A loan modification that does not meet the definition of a 

refinancing in Regulation Z at § 1026.20(a) is not subject to the ATR/QM rule, and, 

accordingly, would not alter the QM status of a loan that was a QM at origination. As the 

CFPB notes in its Small Entity Compliance Guide: “The Truth in Lending Act applies to a loan 

modification only if it is considered a refinancing under Regulation Z. If a loan modification is 

not subject to the Truth in Lending Act, it is not subject to the ATR/QM rule. Therefore, you 

should determine if a loan modification is a refinancing to see if the ATR/QM rule applies. 

You will find the rules for determining whether a loan workout is a modification or a refinance 

in Regulation Z at § 1026.20(a) and accompanying Commentary.” 

 

30. [04/28/2020] Flood Insurance. Are lenders still required to make a flood hazard 

determination, establish escrow accounts, and provide flood notices to borrowers when 

modifying loans for borrowers adversely affected by COVID-19? 

The FDIC understands that the COVID-19 emergency could pose significant temporary 

business disruptions and challenges that affect banks, businesses, borrowers, and the U.S. 

economy. The FDIC will consider the unique circumstances resulting from the COVID-19 

emergency as described in more detail below. 

 

The FDIC encourages financial institutions to work prudently with borrowers adversely 

affected by the COVID-19 emergency. Such efforts serve the long-term interest of 

communities and the financial system when conducted with appropriate compliance 

management oversight, and are consistent with safe and sound banking practices and 

applicable laws, including the Federal flood insurance laws. 

 

As lenders work with borrowers to address their financial service needs, Federal flood 

insurance requirements may be triggered upon the making, increasing, renewing or extending 
 25 

(i.e., a MIRE or triggering event) of any designated loan. For example, if a lender modifies a 

loan by extending the loan term, the loan modification would constitute a triggering event 

under flood insurance law, and the lender would be required to comply with certain flood 

insurance requirements, such as making a new flood hazard determination and providing notice 

to the borrower. The FDIC recognizes that meeting these requirements as lenders work to 

accommodate borrowers during the COVID-19 emergency could pose challenges for lenders 

and delay relief for borrowers in need. 

 

Therefore, when working with borrowers impacted by the COVID-19 emergency triggers a 

MIRE event, lenders may, if applicable: 

• Rely temporarily on a loan’s previous flood hazard determination on file rather than obtain 

a new one during the COVID-19 emergency;26

• Delay the establishment of escrow accounts for applicable loans until after the COVID-19 

emergency; and

• Delay providing a written flood notice to a borrower until after the COVID-19 emergency 

if a property is located in a Special Flood Hazard Area (SFHA) and informing consumers 

about the availability for special disaster relief assistance in the event of a flood. Prior to 

providing written notice, the lender may, at their discretion, choose to use another method 

to inform the borrower of this information (e.g. by email or telephone).

Lenders should have a system in place to ensure deferred flood insurance requirements are 

addressed as soon as reasonably practicable. FDIC examiners, under the FDIC’s discretionary 

examination authority, will not criticize lenders’ good faith flood insurance compliance efforts 

to accommodate borrowers in a safe and sound manner during the COVID-19 emergency. 

31. [04/28/2020] Flood Insurance Triggers. If a lender offers a payment deferral program or 

skip-a-payment program, will this trigger the Federal flood insurance requirements? 

Generally, a payment deferral program, such as a payment holiday or skip-a-payment program, 

is not a loan modification under the Federal flood insurance requirements and does not 

constitute a triggering event for purposes of flood insurance law because the term of the loan is 

not extended. However, if a lender extends the loan term, effectively modifying the loan, it is a 

triggering event and the flood insurance should cover the term of the loan plus any loan 

extension. Additionally, if a lender increases the loan amount, either through capitalizing 

interest or adding fees, then this would be a triggering event if such an increase is not permitted 

in the loan contract. If a MIRE event is triggered (see Question 12) when working with 

 

26 When a lender increases, renews or extends a loan, it may rely on the previous flood determination if (1) the last 

flood determination was made not more than seven years before the date of the transaction, and (2) there were no flood 

map revisions or updates affecting the security property since the original determination was made (42 U.S.C. 

4104b(e)). However, if the flood determination was made outside of the seven years or if the flood map has been 

revised, during the COVID-19 emergency period, lenders may temporarily rely on the pre-exiting determination to 

accommodate borrowers. 
 26 

borrowers affected by the COVID-19 emergency, lenders may take the measures discussed in 

the answer to Question 12 above. 

 

32. [04/28/2020] Flood Insurance Coverage. Do flood insurance renewal premium payments 

still need to be received within 30 days of the policy’s expiration date to avoid a lapse or 

reduction in coverage? 

For certain flood insurance policyholders, the Federal Emergency Management Agency 

(FEMA) announced that the grace period for making premium payments has been extended 

during the COVID-19 emergency. Specifically, on March 29, 2020, FEMA indicated it was 

taking steps to ensure flood insurance policies are not canceled for nonpayment of premiums 

due to the COVID-19 emergency. FEMA acknowledged that National Flood Insurance 

Program (NFIP) policyholders may experience serious changes to their financial situations, 

including loss of income, along with disruptions of normal business services. 

 

Due to a concern about possible lapses or reduction in coverage and the subsequent denial of 

claims occurring during the gap in coverage, FEMA extended the grace period for receipt by 

the NFIP of flood insurance renewal premiums and of any additional premiums due as required 

by an underpayment notice from 30 days to 120 days. The announcement applies to flood 

insurance policies with an expiration date between February 13, 2020 and June 15, 2020. 

Accordingly, lenders should factor this extended grace period (or as further extended by 

FEMA) in working with borrowers or with respect to force placement of flood insurance. 

 

For additional information about FEMA’s extension of the grace period for flood insurance 

renewal premiums, please see: https://nfipservices.floodsmart.gov/sites/default/files/w20002.pdf; and https://www.fema.gov/news-release/2020/03/29/fema-extends-grace-periodflood-insurance-renewal-premiums

33. [04/28/2020] Cash Withdrawals. What are the consumer compliance implications if a 

bank wants to limit customers’ cash withdrawals? 

For consumer accounts, transaction limits must be properly disclosed in advance in accordance 

with applicable Regulation DD (Truth in Savings) and/or Regulation E (Electronic Fund 

Transfers) requirements. For example, Regulation DD requires account disclosures to state 

any limitations on the number or dollar amount of withdrawals. If a bank intends to institute 

limits that were not previously disclosed, banks must provide customers with a change in terms 

notice with the new limitations 30 days prior to implementation. Similarly, new limits on 

electronic funds transfers would need to be properly disclosed. There are some exceptions for 

special circumstances. Financial institutions may call their FDIC Regional Office if they have 

questions about whether the rules for special circumstances apply. 

 

If banks are encountering customers who are worried about the COVID-19 emergency and, as 

a result, want to withdraw large sums of cash and keep it in their possession, it may be helpful 

to remind them of the following: 

 
 27 

• The Federal Reserve System has and will continue to meet the currency needs of banking 

customers. Sufficient resources are available to handle customer needs.

• Consumers are encouraged to continue to conduct transactions as they normally would. 

Credit and debit cards and other payment systems will continue to operate as normal.

• The FDIC has stated that the safest place for customers’ money is deposited at an FDICinsured bank.

• Banks will continue to ensure that their customers have access to funds either directly or 

electronically. Since 1933, no depositor has ever lost a penny of FDIC insured funds.

 

34. [05/03/2020] Force Place Flood Insurance. How does the Federal Emergency 

Management Agency (FEMA) Bulletin W-20002 affect the force placement requirement 

under the Flood Disaster Protection Act and the implementing regulation? If a flood 

insurance policy lapses during the COVID-19 emergency, should a lender force place 

insurance? 

The FDIC understands that the effects of the COVID-19 emergency on lenders and their 

customers is an evolving situation that could pose significant temporary business disruptions 

and challenges that affect lenders, businesses, and borrowers. In accordance with the flood 

insurance force placement regulations, when a lender makes a determination that a designated 

loan is not covered by a sufficient amount of flood insurance, it must notify the borrower. If 

the borrower does not provide evidence of sufficient coverage within 45 days after notification, 

the lender must force place flood insurance in an amount to satisfy the regulatory requirements. 

In addition, as a result of the COVID-19 emergency, National Flood Insurance Program (NFIP) 

policy holders with policies that expire between February 13, 2020 and June 15, 2020 (FEMA 

emergency period) now have a grace period of 120 days (up from the standard 30 days) after 

the expiration date of a policy to reinstate flood insurance coverage.27

In light of this policy, for NFIP policies expiring during the FEMA emergency period, lenders 

may consider the following examples on implementing FEMA’s grace period extension: 

 

• A lender may provide the required notice to the borrower after determining the policy has 

expired with an indication that the NFIP grace period has been extended for 120 days.

Lenders may inform borrowers that, in light of Bulletin W-20002, force placement will not 

occur until the end of the 120-day period. 

• Alternatively, a lender may provide the required notice to the borrower at least 45 days 

before the end of the 120-day grace period.

 

27 On March 29, 2020, FEMA announced in Bulletin W-20002 that the grace period to renew NFIP policies has been 

extended from 30 days to 120 days due to the COVID-19 emergency.24 Based on Bulletin W-20002, a borrower will 

be continually covered by the NFIP policy if flood insurance premium is paid before the 120-day grace period expires. 
 28 

• For either example, if a flood insurance policy is insufficient or has expired or lapsed, 

lenders should make good faith efforts to have borrowers obtain sufficient flood insurance; 

otherwise, flood insurance should be force-placed on behalf of a borrower if the borrower 

does not pay the premium at the end of the 120-day grace period to ensure protection is in 

place in the event of a flood.

• FDIC examiners, under the FDIC’s discretionary examination authority, will consider 

lenders’ good faith efforts to comply with flood insurance requirements, provided that the 

circumstances were related to the COVID-19 emergency and that the institution responded 

to any needed corrective action.

• Lenders should be aware that if they force place flood insurance for NFIP policies that 

expire during the FEMA emergency period prior to the expiration of the 120-day grace 

period and the borrower pays the premium by the end of the 120-day grace period, the 

lender would be required under existing flood insurance regulations to refund the borrower 

for any overlapping flood insurance coverage.

For additional information about FEMA’s extension of the grace period for flood insurance 

renewal premiums, please see: https://nfipservices.floodsmart.gov/sites/default/files/w20002.pdf; and https://www.fema.gov/news-release/2020/03/29/fema-extends-grace-periodflood-insurance-renewal-premiums 

35. [05/04/20] Reserve Account Administration/Regulation D. Are there changes to the six 

convenient transfer limit on savings deposits associated with the Federal Reserve Board’s 

elimination of reserve requirements? 

On April 28, 2020, the Federal Reserve Board published an interim final rule in the Federal 

Register to eliminate the six-per-month limit on convenient transfers within Regulation D. 

Effective April 24, 2020, the interim final rule permits depository institutions to allow their 

customers to make an unlimited number of convenient transfers and withdrawals from their 

savings deposits at a time when financial events associated with COVID-19 have made such 

access more urgent. The interim final rule permits institutions to suspend enforcement of the 

six-transfer limit but it does not require institutions to do so. For additional information, we 

recommend that institutions review the Federal Reserve Board’s FAQs at: 

https://www.frbservices.org/resources/central-bank/faq/reserve-account-admin-app.html. 
 29 

Bank Secrecy Act (BSA) 

1. [4/14/2020] Meeting BSA Filing Requirements. Do financial institutions with reduced staff 

have to meet the timeframes for processing reports related to BSA? 

On March 16, 2020, the Financial Crimes Enforcement Network (FinCEN) issued a press 

release encouraging financial institutions affected by COVID-19 to contact FinCEN and their 

functional regulators as soon as practicable if there were concerns about any potential delays in 

their ability to file required BSA reports. FinCEN’s Regulatory Support Section will continue 

to be available to support financial institutions for the duration of the COVID- 19 pandemic. 

Financial institutions supervised by the FDIC should contact their Regional Office to discuss 

any concerns with filing BSA reports. 

 

On April 3, 2020, the Financial Crimes Enforcement Network (FinCEN) issued a notice 

(FinCEN’s April 3rd Notice) that addressed BSA issues related to COVID-19.28 FinCEN’s 

April 3rd Notice addressed the timing of BSA filings given COVID-19 circumstances, as 

follows: 

 

• FinCEN has heard from certain financial institutions and trade associations for financial 

institutions about difficulties in meeting certain BSA obligations, including the timing 

requirements for certain BSA report filings. In response to concerns regarding certain 

timing requirements of BSA filings, FinCEN recognizes that certain regulatory timing 

requirements with regard to BSA filings may be challenging during the COVID-19 

pandemic and that there may be some reasonable delays in compliance.

• FinCEN will continue to assess reasonable risk-based approaches to BSA obligations and 

will issue further information, as appropriate.

 

• In addition, FinCEN suspended the implementation of the February 6, 2020 ruling (FIN2020-R001) on currency transaction report (CTR) filing obligations when reporting 

transactions involving sole proprietorships and entities operating under a “doing business 

as” (DBA) name (the “2020 Ruling”) until further notice. FinCEN’s April 3rd Notice stated 

that FinCEN will issue further information on these types of CTR filings at an appropriate 

time with reasonable implementation periods. Until such issuance, financial institutions 

should continue to report transactions involving sole proprietorships and DBAs under prior 

practice.

 

2. [4/14/2020] BSA Questions. How can financial institutions raise BSA compliance 

concerns or challenges with FinCEN? 

 

28 Refer to The Financial Crimes Enforcement Network Provides Further Information to Financial Institutions in

Response to the Coronavirus Disease 2019 (COVID-19) Pandemic at https://www.fincen.gov/news/newsreleases/financial-crimes-enforcement-network-provides-further-information-financial.
 30 

FinCEN’s April 3rd Notice stated that FinCEN had created an online contact mechanism for 

financial institutions to communicate to FinCEN concerns related to COVID-19. Financial 

institutions wishing to communicate concerns related to COVID-19 to FinCEN can: 

• Go to www.FinCEN.gov,

• Click on “Need Assistance,” and

• Select “COVID19” in the subject drop-down list, which will facilitate COVID-19 

communication with FinCEN.

FinCEN also encouraged financial institutions to contact their functional regulator(s) or other 

BSA examining authority as soon as practicable if a financial institution has BSA compliance 

concerns because of the COVID-19 pandemic. Financial institutions are encouraged to keep 

FinCEN and their functional regulator(s) or other BSA examining authority informed as their 

circumstances change. 

 

3. [4/14/2020] Are the Small Business Administration’s Paycheck Protection Program (PPP) 

loans for existing customers considered new accounts for Financial Crimes Enforcement 

Network (FinCEN) Customer Due Diligence (CDD) Rule purposes? Are lenders required to

collect, certify, or verify beneficial ownership information in accordance with the rule 

requirements for existing customers? 

Department of the Treasury PPP FAQ Response

Treasury’s PPP FAQs include a specific response to beneficial ownership and CDD 

requirements at account opening (see FAQ 18 at 

https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-AskedQuestions.pdf ). If the PPP loan is being made to an existing customer and the necessary 

information was previously verified, you do not need to re-verify the information. 

Furthermore, if federally insured depository institutions and federally insured credit unions 

eligible to participate in the PPP have not yet collected beneficial ownership information on 

existing customers, such institutions do not need to collect and verify beneficial ownership 

information for those customers applying for new PPP loans, unless otherwise indicated by the 

lender’s risk-based approach to BSA compliance. 

FinCEN Response

FinCEN’s April 3rd Notice addressed PPP loans as well as other extensions of credit (non-PPP 

loans). Refer to The Financial Crimes Enforcement Network Provides Further Information to

Financial Institutions in Response to the Coronavirus Disease 2019 (COVID-19) Pandemic see 

https://www.fincen.gov/news/news-releases/financial-crimes-enforcement-network- providesfurther-information-financial. 

• For eligible federally insured depository institutions and federally insured credit unions, 

PPP loans for existing customers will not require re-verification under applicable BSA 
 31 

requirements, unless otherwise indicated by the institution’s risk-based approach to BSA 

compliance.

• For non-PPP loans, FinCEN reminds financial institutions of FinCEN’s September 7, 2018 

ruling (FIN-2018-R004) offering certain exceptive relief to beneficial ownership 

requirements. To the extent that renewal, modification, restructuring, or extension for 

existing legal entity customers falls outside of the scope of that ruling, FinCEN recognizes 

that a risk-based approach taken by financial institutions may result in reasonable delays in 

compliance.

4. [4/14/2020] BSA Issues for New Customers. What are a financial institution’s BSA 

requirements when a financial institution is approached by a non-customer (potential 

new customer relationship) regarding the Small Business Administration’s Paycheck 

Protection Program (PPP)? 

Treasury’s PPP FAQs (#25)29 and FinCEN’s PPP FAQs (#2)30 address BSA requirements, 

relative to the PPP, for lenders with new customers. For new customers, the lender’s collection 

of the following information from all natural persons with a 20% or greater ownership stake in 

the applicant business will be deemed to satisfy applicable BSA requirements and FinCEN 

regulations governing the collection of beneficial ownership information: owner name, title, 

ownership %, TIN, address, and date of birth. If any ownership interest of 20% or greater in 

the applicant business belongs to a business or other legal entity, lenders will need to collect 

appropriate beneficial ownership information for that entity. 

 

If you have additional questions about requirements related to beneficial ownership, refer to 

https://www.fincen.gov/resources/statutes-and-regulations/cdd-final-rule. Decisions regarding 

further verification of beneficial ownership information collected from new customers should 

be made pursuant to the lender’s risk-based approach to BSA compliance. 

 

 29 See at https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf. 30 See at https://www.fincen.gov/sites/default/files/2020-04/Paycheck_Protection_Program_FAQs.pdf.
32 

Available Resources 

• FIL-36-2020, Revised Interagency Statement on Loan Modifications by Financial Institutions

Working with Customers Affected by the Coronavirus, April 7, 2020,

https://www.fdic.gov/news/news/financial/2020/fil20036.html.

• FIL-22-2020: Interagency Statement on Loan Modifications and Reporting for Financial

Institutions Working with Customers Affected by the Coronavirus, March 22, 2020,

https://www.fdic.gov/news/news/press/2020/pr20038a.pdf.

• FIL-19-2020: Joint Statement on CRA Consideration for Activities in Response to COVID- 19,

March 19, 2020, https://www.fdic.gov/news/news/financial/2020/fil20019a.pdf.

• FIL-17-2020: FDIC Statement on Financial Institutions Working with Customers Affected by

the Coronavirus and Regulatory and Supervisory Assistance; March 13, 2020,

https://www.fdic.gov/news/news/financial/2020/fil20017a.pdf

• FFIEC Statement on Pandemic Planning, March 6, 2020,

https://www.ffiec.gov/press/pr030620.htm.

• Financial Crimes Enforcement Network (FinCEN) Encourages Financial Institutions to

Communicate Concerns Related to the Coronavirus Disease 2019 (COVID-19) and to Remain

Alert to Related Illicit Financial Activity, March 16, 2020, https://www.fincen.gov/news/newsreleases/financial-crimes-enforcement-network-fincen-encourages-financial-institutions.

• Call Report forms and instructions: https://www.ffiec.gov/ffiec_report_forms.htm.

• Accounting and Regulatory Reporting Questions and Answers:

https://www.ffiec.gov/katrina.htm.

• FIL-50-2013: Troubled Debt Restructurings Interagency Supervisory Guidance:

https://www.fdic.gov/news/news/financial/2013/fil13050.html.

• Interagency – Small Dollar Lending, https://www.consumerfinance.gov/aboutus/newsroom/federal-agencies-encourage-banks-savings-associations-credit-unions-to-offerresponsible-small-dollar-loans-consumers-small-businesses-affected-covid-19/.

• CFPB – Credit Reporting Guidance, https://www.consumerfinance.gov/aboutus/newsroom/cfpb-issues-credit-reporting-guidance-during-covid-19-pandemic/.

• Interagency Mortgage Servicing Guidance, https://www.consumerfinance.gov/aboutus/newsroom/federal-agencies-encourage-mortgage-servicers-work-struggling-homeownersaffected-covid-19/.

• Interagency Loan Modification Guidance – updates March 22 publication,

https://www.consumerfinance.gov/about-us/newsroom/agencies-issue-revised-interagencystatement-loan-modifications-coronavirus/.