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 today with Auto Finance News, industry experts Mark Edelman and Kelly Lipinski from McGlinchey addressed the key issues auto lenders are currently facing.
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.
“Lenders need to be thoughtful that they are putting in place a program that will be applied in a fair manner, a meaningful manner, and in a consistent manner,” Lipinski advised, noting that auto lenders need to evolve with the changing terrain the coronavirus pandemic has brought on.
Tune into the exclusive interview below, which is a part of AFN’s full coverage on the developing COVID-19 economic crisis and its impact on auto lenders.
