Federal banking regulators are pledging to go easy on lenders in the Gulf Coast States that work with and assist their customers—including mortgagors—that have been adversely impacted by the British Petroleum oil spill disaster.
Regulators are encouraging banks to modify loans, allowing borrowers to recover from the disaster and be in a better position to pay off their obligations.
Servicers can extend or restructure loans in "anticipation of the receipt of funds based on claims the borrowers may have filed with BP," according to a joint statement issued by federal and state supervisors.
Regulators also are pledging to be lenient in regard to capital requirements.
"If significant declines in an affected institution's capital ratios have occurred or are projected, examiners will consider whether the institution's board of directors has developed a satisfactory capital restoration plan that provides for capital augmentation in a timely manner," the joint statement said.
