The Federal Deposit Insurance Corporation announced a package of regulatory and supervisory relief measures for FDIC-supervised institutions affected by severe storms, straight-line winds, tornadoes and flooding in Mississippi. The measures are intended to support bank operations and local recovery after the May 6 to May 7, 2026 damage, and follow the Federal Emergency Management Agency’s June 30, 2026 federal disaster declaration for Franklin, Lamar, Lawrence, Lincoln and Wilkinson counties. The FDIC urged institutions to work constructively with borrowers facing storm-related difficulties and said it will not criticize prudent efforts to adjust existing loan terms when those actions are consistent with safe and sound banking practices. Banks may also receive Community Reinvestment Act consideration for qualifying disaster-recovery loans, investments and services. Additional relief includes flexibility on certain filing and publishing requirements where disruption is beyond an institution’s control, and expedited handling of requests to operate temporary banking facilities if offices are damaged or if banks need to provide services more conveniently in affected areas. The agency also encouraged institutions to monitor municipal securities and loans in the affected areas and noted that Regulation Z allows waiver or modification of the three-day rescission period for principal dwelling-secured loans when a bona fide personal financial emergency exists. The FDIC noted that FEMA may add further designated areas after damage assessments are completed.

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