To contain COVID-19 and save lives, the government has required many people to stay home and not report to work.  To help those people manage their financial obligations, the government is also mandating different types of payment forbearance relief.  That relief resembles a stay or moratorium on enforcement and is increasingly pervasive and generally unprecedented.

These actions by definition cause a decrease in the cash flow and value of these financial obligations in the hands of the holder regardless of whether the holder is an originator, financial intermediary, a fund or REIT or securitization issuer.

Continue Reading on Mayer Brown’s Retained Interest blog.

***

If you wish to receive periodic updates on this or other topics related to the pandemic, you can be added to our COVID-19 “Special Interest” mailing list by subscribing here. For any other legal questions related to this pandemic, please contact the Firm’s COVID-19 Core Response Team at FW-SIG-COVID-19-Core-Response-Team@mayerbrown.com.

The post Might Consumer Forbearance be Expanded to Business? appeared first on COVID-19 Response Blog.