Working with Troubled Loans: Extensions, Deferments, Re-Aging, Refinancing & Incentives

Credit risk is back in the headlines and most industry experts and regulators predict a wave of defaults is on the horizon. If your institution is focusing solely on the delinquency report to identify troubled borrowers, you are ripe for an upgrade! Every borrower who has had a loan charged off made a final payment at some time. The problem was the institution didn’t realize it was the last payment. That’s why bankruptcy filings are sometimes surprising. The current economic environment is having a negative impact on many borrowers and institutions are in a unique position to assist them – if they can avoid the numerous landmines along the way. Is your collections department ready to help both the borrower and the credit union weather the storm?