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OTS GIVES S&LS GUIDELINES TO HELP FLOOD REBUILDING

 WASHINGTON, July 14 /PRNewswire/ -- Savings and loans in states hit by flooding have been told by their federal regulator to reach out to their communities and work with borrowers to finance rebuilding. The Office of Thrift Supervision (OTS) issued the guidelines today from its Chicago and Dallas regional offices.
 "OTS will do its part to cut through red tape and adjust our supervision to help thrift institutions recover so they, in turn, can make a meaningful contribution to the general recovery effort," said John Downey, OTS deputy director for regional operations.
 The guidelines said OTS will grant temporary waivers of some rules to help savings institutions cope with the disaster. For example, OTS will encourage lending to rebuild small businesses by granting temporary waivers to the rule that requires thrifts to keep 65 percent of their assets in housing loans. Institutions that find themselves with a sudden increase of deposits of insurance payments or government assistance can apply for temporary waivers of the leverage ratio capital requirement.
 The directives, issued by Ronald N. Karr, Chicago regional director, and Frederick R. Casteel, Dallas regional director, urge thrifts to work with borrowers to restructure or to increase their loans if needed to finance reconstruction or repair. Thrifts are also urged to consider temporarily waiving charges for late payments for flood victims, and to seek out various government programs that may help in cases in which credit risk of potential borrowers is too great.
 The directives were sent to savings institutions in Illinois, Wisconsin, Minnesota, Iowa, Missouri, Kansas, South Dakota and Nebraska. Copies of the directives are available from the OTS press office: 202-906-6693.
 -0- 7/14/93
 /CONTACT: Paul Lockwood of the Office of Thrift Supervision, 202-906-6693/


CO: Office of Thrift Supervision ST: District of Columbia IN: FIN SU: EXE

IH-MH -- DC018 -- 1430 07/14/93 12:43 EDT
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Publication:PR Newswire
Date:Jul 14, 1993
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