FDIC: Guidance to Help Financial Institutions, Facilitate Recovery in Mississippi Affected by Severe Storms, Tornadoes, Straight-Line Winds, Flooding

WASHINGTON, April 23 -- The Federal Deposit Insurance Corporation issued the following financial institution letter (No. FIL-47-2020):

Summary:

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, straight-line winds and flooding.

Statement of Applicability to Institutions with Total Assets under $1 Billion: This Financial Institution Letter (FIL) applies to all FDIC-supervised financial institutions.

Highlights:

* Severe storms, tornadoes, straight-line winds and flooding have caused significant property damage in areas of Mississippi on April 12, 2020.

* A federal disaster for selected areas affected in Mississippi was declared on April 16, 2020. 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 (CRA) 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.

Continuation of FIL-47-2020

Distribution:

* FDIC-Supervised Institutions in Mississippi

Suggested Routing:

* Chief Executive Officer

* Compliance Officer

* Chief Lending Officer

Related Topics:

* Lending

* Investments

* Publishing Requirements

* Consumer Laws

* Community Reinvestment Act

Contact:

* J. Mark Love, Assistant Regional Director, (972) 761-2034 or [email protected]

Note:

Access FDIC Financial Institution Letters (FILs) on the FDIC's website.

Subscribe to receive FILs electronically.