Consumer Loan Workouts
Kelley Drye Client Advisory
On April 17, 2007 the Federal Reserve and other federal agencies issued a press release encouraging financial institutions to work with homeowners who are unable to make mortgage payments.
The release also stated that institutions will not face regulatory penalties if they pursue reasonable workout arrangements with borrowers. The advisory contains valuable tips using the new regulatory environment for consumer finance lenders on managing defaults and in arranging new loans.