Gov. Lamont, banks partner to help businesses affected by August floods

SEYMOUR – The state government and the financial services industry have announced partnerships to provide relief to individuals and businesses affected by the Aug. 18, 2024 floods, Gov. Ned Lamont and Banking Commissioner Jorge Perez said.

In a joint press conference in Seymour Monday CEOs and executives of major banks and credit unions from across Connecticut joined Lamont and Perez to announce the financial assistance from the severe flooding in Fairfield County, Litchfield County, and New Haven County.

The Connecticut Department of Banking has issued guidance to state-chartered banks and credit unions, urging them to work with borrowers consistent with safe and sound banking practices and providing them with the necessary regulatory framework to do so. As they did during the COVID-19 pandemic, the state’s banks and credit unions are prepared to assist customers and residents impacted by the floods, including loan restructuring and fee accommodations.

In Perez’ guidance, he included other ways banks and credit unions can help with borrowers affected by the floods. They include waiving late fees, offering forbearance plans and other deferment options.

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

“I appreciate that Connecticut’s financial institutions are also stepping up and recognizing that they play an important role in helping people and businesses recover (from this storm),” Lamont said. “The old proverb, ‘it takes a village,’ certainly applies in situations like this, and I thank Connecticut’s banks and credit unions for working with our administration to help provide relief to our state’s residents who were impacted by this weather event.”

Perez was grateful that state banks and credit unions have come forward to help out.

“Our department is grateful that so many federally chartered and Connecticut state-chartered banks and credit unions have stepped up to aid those in need,” he said. “These financial Institutions are raising awareness of the programs they already have in place which are designed to assist customers experiencing natural disasters. I applaud their efforts to help residents and small businesses alike.”

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

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

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

Anyone experiencing difficulty in reaching out to their mortgage services may contact the Connecticut Department of Banking at 860-240-8170 or department.banking@ct.gov.

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