Early Assistance Requests
Ally Bank has reported 25% of auto loans have requested deferment. 70% of these requests are borrowers NEVER late on their loan.
Defaults?
How many borrowers who request assistance will ultimately become NPL? Early signals are ominous.
Early Indicator
This is an early warning. Expect the numbers of assistance requests to increase before COVID-19 is resolved.
Time for Action is NOW!
What is your strategy as a lender or servicer? What are your needs in terms of planning, execution and liquidity?