loan modifications

Banks criticized for requiring balloon payments on loans in forbearance


Some homeowners who sought relief as a result of COVID-19 may owe a lump sum when their forbearance period ends, according to a report from the Committee for Better Banks. The group is calling on banks to instead extend the repayment periods for affected customers.


Bankers urge extension of CARES Act reg relief


Measures designed to give banks and credit unions more flexibility to help customers weather the coronavirus pandemic are set to expire Dec. 31 unless Congress renews them.


Reduction in deferrals a promising sign for credit


More consumer and commercial borrowers are paying their loans, increasing the likelihood that charge-offs will be manageable for banks despite the ongoing pandemic.


Biggest U.S. banks have more than $150 billion of deferred loans


Deferrals on residential mortgages and home-equity loans have been a common theme at JPMorgan Chase, Bank of America, Wells Fargo and Citigroup since the start of the coronavirus pandemic.


Small-business bankruptcy program adds new risk to home equity loans


Mortgages taken out to fund business operations can now be modified in bankruptcy. That’s a relief to borrowers — particularly with business failures expected to increase as the pandemic drags on — but a possible headache for banks and investors that hold the loans.


Forbearance during coronavirus a double-edged sword


Borrower relief is necessary in a national emergency, but if the exclusion of the deferred loans from troubled debt restructurings is extended past the end of the year, safety and soundness could be compromised.


How lenders are preparing for a wave of loan modifications


With no way of knowing just how many borrowers will need the mods after the coronavirus forbearance period ends, lenders are deploying artificial intelligence and servicing protocols to tame the ferocious piles of paperwork awaiting them.


Bankers forced to play guessing game as loan deferrals mount


Lenders that scrambled to grant forbearance as the coronavirus pandemic took hold are unsure about the extent of potential losses.


BankUnited, Cadence feeling restaurants’ pain from pandemic


The lenders are bracing for spikes in delinquencies or defaults on loans to a sector heavily punished by social distancing measures.


Servicers of private student loans offer relief to borrowers


More than a dozen firms have struck agreements with nine states to provide forbearance to customers struggling to make payments in the midst of the coronavirus pandemic.