Regulatory risks in providing coronavirus-based payment deferrals

The coronavirus outbreak has resulted in an economic recession spurred by shelter-in-place orders that have shuttered doors for nonessential businesses, including most car dealerships. During a compliance roundtable with Auto Finance News, industry experts Mark Edelman and Kelly Lipinski from McGlinchey address the key issues auto lenders are facing today. Virtually every major auto financier has now implemented some sort of payment relief program that allows consumers to defer payments with or without interest. However, no good deed goes unpunished, and there are many compliance considerations that lenders will have to keep on their radar. From eligibility and proof, to F&I products and servicing implications, in this discussion Edelman and Lipinski detail actionable advice for lenders to mitigate regulatory risks with deferral programs.