The Federal Deposit Insurance Corporation (FDIC) recognizes the serious impact of
severe weather on customers and operations of financial institutions in
Mississippi and will provide regulatory assistance to institutions subject to
its supervision. These initiatives will provide regulatory relief and facilitate
recovery. The FDIC encourages depository institutions in the affected areas to
meet the financial services needs of their communities.
The affected areas in Mississippi are Forrest and Lamar counties.
Lending: Bankers should work constructively with borrowers in
communities affected by the severe weather. The FDIC realizes that the effects
of natural disasters on local businesses and individuals are often transitory,
and prudent efforts to adjust or alter terms on existing loans in affected areas
should not be subject to examiner criticism. In supervising institutions
affected by the severe weather, the FDIC will consider the unusual circumstances
they face. The FDIC recognizes that efforts to work with borrowers in
communities under stress can be consistent with safe-and-sound banking practices
as well as in the public interest.1
Community Reinvestment Act (CRA): Financial institutions may
receive CRA consideration for community development loans, investments, or
services that revitalize or stabilize federally designated disaster areas in
their assessment areas or in the states or regions that include their assessment
areas. For additional information, institutions should review the
Interagency Questions and Answers Regarding Community Reinvestment at
http://www.ffiec.gov/cra/pdf/2010-4903.pdf
at Section 12(g)(4)(ii). For help in identifying community development
activities to revitalize or stabilize a disaster area, financial institutions
can contact their regional Community Affairs Officer (see http://www.fdic.gov/consumers/community/offices.html).
Investments: Bankers should monitor municipal securities and
loans affected by the severe weather. The FDIC realizes local government
projects may be negatively affected. Appropriate monitoring and prudent efforts
to stabilize such investments are encouraged.
Reporting Requirements: FDIC-supervised institutions affected
by the severe weather should notify the Dallas Regional Office if they expect a
delay in filing Reports of Income and Condition or other reports. The FDIC will
evaluate any causes beyond the control of a reporting institution when
considering the length of an acceptable delay.
Publishing Requirements: The FDIC understands the damage caused
by the severe weather may affect compliance with publishing and other
requirements for branch closings, relocations, and temporary facilities under
various laws and regulations. Banks experiencing disaster-related difficulties
in complying with any publishing or other requirements should contact the Dallas
Regional Office.
Consumer Laws: Regarding consumer loans, Regulation Z provides
consumers an option to waive or modify the three-day rescission period when a
"bona fide personal financial emergency" exists. To exercise this option, the
consumer must provide the lender with a statement describing the emergency in
accordance with the regulation.
Temporary Banking Facilities: The Dallas Regional Office will
expedite any request to operate temporary banking facilities by an institution
whose offices have been damaged or that desires to provide more convenient
availability of services to those affected by severe weather. In most cases, a
telephone notice to the FDIC will suffice initially. Necessary written
notification can be submitted later.
1 Modifications of
existing loans should be evaluated individually to determine whether they
represent troubled debt restructurings (TDRs). This evaluation should be based
on the facts and circumstances of each borrower and loan, which requires
judgment, as not all modifications are TDRs.
