Damage estimates from Hurricane Sandy are estimated at more than $50 billion. The consumer finance industry will be monitored on the effectiveness and efficiency of its response to the crisis. This News Alert summarizes guidance and considerations for consumer finance companies.
The industry will likely be under an increased level of scrutiny to make sure that the response to Sandy is efficient, effective, and executed with compassion in consideration of the loss experienced by many.
To date Fannie Mae, Freddie Mac, FHA and the CFPB have already issued announcements related to residential lending and servicing and other regulatory agencies are expected to continue to issue guidance applicable to consumer finance in the coming days and weeks.
This News Alert summarizes the guidance issued to date and identifies some operational and financial reporting considerations for industry participants. Specifically, the document addresses general considerations applicable across consumer finance assets as well as some that are specific to various asset classes: mortgage, credit cards, and auto finance.