Mississippi: FDIC Provides Guidance to Help Facilitate Recovery in Areas of Affected by Severe Storms, Tornadoes and Flooding

Feb 15 - The FDIC has announced a series of steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Mississippi affected by severe storms, tornadoes and flooding.

Highlights:

• Severe storms, tornadoes and flooding caused significant property damage in areas of Mississippi beginning on Feb. 10, 2013, and continuing.
• A federal disaster for selected areas in Mississippi was declared on Feb. 13, 2013. Additional designations may be made after damage assessments are completed in the affected areas. A current list of designated areas is available at www.fema.gov.
• The FDIC is encouraging banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by the severe weather.
• Extending repayment terms, restructuring existing loans, or easing terms for new loans, if done in a manner consistent with sound banking practices, can contribute to the health of the local community and serve the long-term interests of the lending institution.
• Banks may receive favorable Community Reinvestment Act consideration for community development loans, investments and services in support of disaster recovery.
• The FDIC also will consider regulatory relief from certain filing and publishing requirements.

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