Forbearance, Foreclosure, and Force Majeure: Managing Coronavirus Loan Workouts at Your Institution
Lenders have taken advantage of prudential guidance to extend payment forbearance options to customers during the current period of distancing and restrictive measures to fight the initial waves of the pandemic. We have seen several strategies in the market, and this forbearance has taken many forms. Regardless of institution shape or size, some borrowers will be able to catch up or refinance in market-available terms, while others will need significant intervention from their lenders, including actions that meet the notions of credit impairment and troubled debt restructure when borrower hardship persists past the acute phase of the pandemic or energy shocks.
In this sixty-minute webinar, we will discuss the importance of:
- Establishing and applying consistent criteria for decision-making
- Triage and prioritization for stabilizing troubled customers
- Present-value modeling for terms of restructured agreements
- Efficient communication for (likely understaffed) special assets teams
- Integrated processes for secure, distributed decision-making