In response to the current COVID19 Pandemic, lenders nationwide are recognizing the sweeping impact of the current situation and it’s financial impact to borrowers affected by it. While lenders nationwide are placing repossession assignments on hold and not assigning out new work, the front line financial defense to the affected public are extensions and it appears that the vast majority of lenders are not only ready to make these offers, but many are being encouraged to loosen their loan modification underwriting guidelines to better maximize relief to their borrowers.
On Monday, the NCUA issued a memo, that amongst other things, strongly proposed a loosening of loan modification underwriting guidelines. The NCUA emphasized that prudent efforts to adjust or alter terms on existing loans in affected areas will not be subject to examiner criticism. Read the Memo Here!
On Tuesday, the FDIC issued an almost identical memo to the NCUA one urging the offering of payment accommodations, such as allowing borrowers to defer or skip some payments or extending the payment due date, which would avoid delinquencies and negative credit bureau reporting; and to work with consumers who are temporarily unable to work due to temporary business closures, slowdowns, or sickness. While stressing the these loans should also be considered Troubled Debt Restructurings (TDR) as part of theor financial reporting and reserves, but went further in stating that “The FDIC supports and will not criticize efforts to accommodate customers in a safe and sound manner.” Read the Memo Here!
Several automakers are currently offering payment deferrals for customers experiencing financial hardship.
Hyundai has relaunched Assurance, a program it
originally introduced in 2009 during the economic downturn to offer help to
consumers. It provides up to six months of payment relief for owners who lose
their jobs, making it the most generous outright assistance package we’ve seen.
New buyers can get 90 days of deferred payments on new purchases of both
Hyundai and Genesis
vehicles.
Visit Hyundai Assurance
The Ford Credit homepage
has a number existing owners can call to discuss payment options for their Ford
or Lincoln.
Additionally, Ford will be offering 90 days of deferred payments on new
purchases. While these new-purchase incentives are enticing, it’s important to
carefully consider your situation before committing to a loan.
Visit Ford Motor
Credit
Nissan’s finance
arm, NMAC, has a hotline set up for customers to discuss flexible repayment
options. As with Ford, Toyota and others, it’s hard to say what relief exactly
owners can expect or how much it may vary from person to person. While we wish
there was more upfront clarity, there’s no reason not to reach out and ask for
help if you need it.
Visit Nissan Finance
Toyota Financial
Services and Lexus
Financial Services can be reached by phone or email to discuss extensions and
deferments. We appreciate that Toyota, like other brands, is including its
luxury arm to help those buyers who may also suddenly find themselves on less
solid footing.
Visit Toyota
Financial Services
Visit Lexus
Financial Services
General Motors (which
includes Chevrolet,
Buick,
GMC
and Cadillac)
has set up hotlines for owners with questions or concerns about their loans.
General Motors is also offering 0% interest on 84-month loans and 120-day
deferred payments on new vehicle purchases for customers in top credit tiers.
We generally do not recommend
taking on such a long loan, and these offers won’t apply to many
consumers.
Visit Chevy
Cares
Both Wells
Fargo and Ally Financial service
a lot of car loans, and both have hotlines available for consumers facing
financial hardship during this emergency. So even if you financed a used car,
if you did so through your bank, there may be recourse. Both companies can also
be contacted about existing credit card, personal loan, or other types of debt.
Visit Wells Fargo’s COVID-19 information center
Visit Ally
Financial’s coronavirus response center
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