The COVID-19 pandemic has caused a great deal of financial stress for borrowers, which means loan modifications and forbearance agreements have become necessities. Inez M. Markovich of McCarter & English and Howard Brod Brownstein of The Brownstein Corporation outline what lenders and borrowers should expect.
If a lender ends a forbearance agreement, does that equate to bringing economic distress to the borrower? Reed Smith’s Brian Schenker summarizes the case and court findings in Interpharm Inc. vs. Wells Fargo Bank, N.A., 655 F.3d 136 (2d Cir. 2011) to show how the lender did not exceed the borrower’s rights under their established agreements and what it means for similar borrowers in the same situation.