The federal financial institutions regulatory agencies continue to receive inquiries from financial institutions on regulatory and reporting issues related to Hurricanes Katrina and Rita. Attached to this SR letter is the complete set of questions and answers (Q&As) issued by the agencies as of November 23, 2005, which includes the first set of Q&As previously issued in SR letter 05-20 on October 14, 2005.¹ The issue date of a Q&A is indicated at the end of each question. The new Q&As provide guidance on:

• Past due and nonaccrual reporting, including troubled debt restructurings, for commercial loans.
• Past due and nonaccrual reporting for small business loans subject to across-the-board payment deferral arrangements.
• Temporary hardship programs for non-credit card retail lending, including residential mortgage lending.
• Treatment of municipal bond obligations

Reserve Banks are asked to provide a copy of this letter and attachment to state member banks and bank holding companies and to appropriate supervision staff. Additional hurricane-related guidance is available on the Board’s Hurricane Katrina webpage. Questions should be directed to Molly Wassom, Associate Director, Division of Banking Supervision and Regulation at 202/452-2305. For accounting and reporting related questions, please contact Charles Holm, Deputy Associate Director, at 202/452-3502 or Art Lindo, Manager of Accounting Policy and Disclosure, at 202/452-2695.

Attachment:

Interagency Questions and Answers for Financial Institutions in Response to Hurricanes Katrina and Rita (927 KB PDF)

As of November 23, 2005

Supersedes:

SR letter 05-20