Lending institutions that serve farmers affected by the 2012 drought are being encouraged by the Federal FinancialInstitutions Examination Council to work with borrowers to modifyloans, ease credit terms and expedite credit decisions.
The FFIEC said in a release Tuesday that it will “supportefforts to originate and prudently modify loans” for affectedfarmers. In exchange for their efforts, lending institutions willreceive consideration from examiners regarding the unusual circumstances in affectedareas, the FFIEC said.
“Financial institutions that implement prudent loan workoutarrangements will not be subject to criticism for engaging in theseefforts even if the restructured loans have weaknesses that resultin adverse classification or credit risk grade,” the FFIECsaid.
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