LEAF Becomes Early Adopter of Tamarack Debt Restructuring Utility
APR 24, 2020 - 6:55 am
LEAF Commercial Capital, has adopted Tamarack Consulting’s Extension-of-Terms Automation Utility (ETAU). As one of the first to implement the contract modification tool, LEAF is positioned to quickly respond to customer requests arising from the economic impact of COVID-19
The troubled-debt restructuring utility is designed to assist equipment finance companies during the current economic downturn and anticipated recovery. Tamarack’s ETAU is aligned with the Federal Reserve Bank’s (FRB) guidelines for financial institutions released on March 22.
“When we saw FRB guidelines on providing grace periods for our customers, we began working immediately to assist customers who may need it,” said Miles Herman, president and COO of LEAF. “But as the scale of effort became clear, we began looking into possible automation solutions to help us keep pace with the needs of customers. Tamarack’s ETAU product proved to be an ideal fit, allowing us to automate term changes, giving us additional flexibility, and helping us maintain a high level of customer responsiveness in an exceptionally challenging time.”
Released on March 30, Tamarack’s ETAU provides an automation utility along with integration services enabling lessors to automate lease/loan modifications for lessees. Through the new utility, lessors can easily modify the payment structure for their customers, granting a 60- to 180-day grace period per the Federal Reserve Bank’s guidelines.
“When the FRB’s guidelines were released, we knew that companies like LEAF would be taking immediate action,” said Daniel Nelson, CEO of Tamarack. “Recognizing that the scale of work required to make the lease modifications would be overwhelming, we made it a priority to do our part to help streamline and automate the process. For us, creating this utility was the most important thing we could do to help ease the stress faced by both the lessor and their customers during this period of economic uncertainty.”
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