Tamarack Consulting, a leader in providing independent software solutions in the equipment finance and commercial lending industry, has released a Troubled-Debt Restructuring Utility to assist lessors during the current economic downturn and anticipated recovery as a result of the COVID-19 pandemic.

Available immediately for equipment finance companies, Tamarack’s Extension-of-Terms Automation Utility (ETAU) provides an automation utility along with integration services enabling lessors to automate lease/loan modifications for lessees.

“During this time of crisis, lessors are encouraged to pursue loan modification programs to mitigate the adverse economic effects on borrowers,” said Daniel Nelson, CEO of Tamarack. “In order to enable economic recovery, it is essential that all those involved in the equipment financing community streamline processes. Through this utility, we are dramatically simplifying the process for modifying leases and loans.”

Through the new utility, lessors can easily modify the payment structure for their customers granting, per the Federal Reserve Bank’s (FRB) guidelines, a 60 to 180-day grace period. The utility can be configured to perform restructures while maintaining specific economic factors in the transaction. For example, some Lessors may wish to maintain the yield by increasing the remaining payment stream or a larger final payment, while others may accept the yield degradation in order to maintain a consistent payment stream for the lessee.

Aligned with FRB’s guidelines for financial institutions, Tamarack’s ETAU enables lessors to quickly comply with the FRB’s guidance performing a) lease/loan modifications b) deferral of Past Due reporting, and c) deferral of nonaccrual and charge-off status. Any Troubled-Debt-Restructuring is also documented for both lessor and lessee for the purpose of pursing SBA funding to cover the lost revenue created by the COVID-19 epidemic.