The CARES Act, passed by the US government on March 27, 2020, will provide economic relief to American families, workers, and businesses facing financial hardship as a result of the COVID-19 pandemic. The stimulus package includes direct and indirect financial benefits to individuals, such as payments to individuals or early access to funds in retirement plans, respectively.
The Paycheck Protection Program established in the CARES Act aims to incentivize small business owners to keep their employees on the payroll. Additionally, grants have been established to assist select industries under severe distress as a result of the pandemic, such as passenger airlines. These are only a few of the myriad relief provisions established by the act. Other beneficiaries include state and local governments, as well as school districts and institutes of higher education.
While tackling their own challenges in ensuring business continuity and service delivery during the prevailing crisis, the financial institutions that lend to the communities play an important role in driving recovery and striding forward.
The TCS Promise – Help for the Long Haul
The CARES Act allows for a temporary period of mortgage forbearance to anyone facing financial hardship. Financial institutions that originate and service mortgages therefore need to adapt their processes and systems to deal with the massive surge in forbearance requests. Institutions that can perfect the request intake and customer communication processes, meet the rise in customer service requests, and update their systems and workflows to adapt to loan policy rule changes will be able to weather the storm and be resilient for the future.
TCS’ Digital Mortgage Services and Mortgage Forbearance Solution will offer the much-needed enablement to banks and mortgage servicers in this regard. TCS provides end-to-end services right from origination to servicing and foreclosure. Our Self-Service Mobility solution accepts forbearance requests from customers, pulls out their records for verification and proceeds with processing the requests after requisite validations. In addition, TCS’ AI-based customer support offerings shorten the resolution time for customer queries, allowing banks’ personnel to focus on core business activities.
Another highlight of the CARES Act is the Paycheck Protection Program which will require banks and lenders to administer and service $659 billion worth of small business loans. Loan recipients can claim forgiveness for the portion of funding that is utilized to pay employees and certain other qualifying expenses. Lenders will need to be flexible with their systems and processes to process the huge, temporary volume of forgiveness requests. They will need to intake requests, verify evidence of proper loan utilization to grant forgiveness, and implement policy changes — all while being compliant.
TCS’ Paycheck Protection Program Loan Forgiveness Solution helps small business lenders quickly implement loan policy changes to rapidly scale and respond to the needs of their customers, while minimizing the cost of operations. A cloud-based solution, it can be quickly deployed to bring about end-to-end functionality and flexibility in the entire process.
by leveraging our unique insights and deep technical expertise. Explore our solutions and learn how TCS stands ready to support US banks and financial institutions as they embark on this nation-rebuilding initiative.
For more information, please contact Kevin Ryan.