# Loan Replay™ Overview

Loan Replay™ is a feature that handles retroactive changes to loans, preserving its complete history before and after modifications. This tool solves critical challenges faced by traditional loan management systems, including:

- Handling failed payments discovered after significant time delays
- Implementing retroactive interest rate changes
- Applying backdated fees or credits
- Managing complex financial products such as lines of credit with multiple sub-lines


By integrating Loan Replay, lenders can manage loans more effectively, ensure data integrity, and maintain compliance while adapting to changing circumstances or correcting discrepancies. This feature also minimizes:

- Allocation of developer and finance resources to manual retroactive reconciliation
- Delays in business value initiatives due to resource reallocation
- Challenges in sourcing capital, especially in edge cases where data inconsistencies erode investor confidence
- Errors from manual reconciliation that cause downstream issues


# Key Features

- **Complete Auditability**: Generates detailed audit logs with events like `loan.interestaccrued`, `loan.balance.change`, and `payment.applied` for accurate tracking and ledger modification.
- **Systematic Retroactive Changes**: Operates without manual intervention, recalculating loan terms while preserving the integrity of the original transaction history.
- **Complex Financial Product Support**: Handles intricate products, including lines of credit with sub-lines.
- **Integration**: Fully integrated with Peach's loan management system, ensuring compatibility across various loan types.
- **Automatic Recalculations**: Automatically updates all necessary calculations when retroactive changes are made.
- **Full History Preservation**: Maintains both the original and updated loan histories for transparency and compliance.
- **User-Friendly Interface**: Accessible via the Agent Portal for straightforward execution of retroactive operations.
- **API Access**: Offers programmatic access and integration with other systems.


# How Loan Replay Works

1. **Event Tracking**: Continuously tracks all loan-related events using an event-sourcing system.
2. **Retroactive Change Initiation**: Changes can be initiated through the Agent Portal or API.
3. **Event Backdating**: Creates backdated events to adjust the loan’s historical state.
4. **Reprocessing**: Reprocesses all subsequent events to reflect the changes.
5. **Recalculation**: Automatically updates interest, payments, and other factors based on the new event history.
6. **History Preservation**: Retains both the original and new histories, ensuring a complete audit trail.
7. **Ledger Update**: Updates the financial ledger to reflect the recalculated loan state.


# Use Cases

1. **Past Failed Payments**:
  - **Scenario**: An ACH payment fails 4–5 days after it was made.
  - **Action**: Loan Replay recalculates the loan’s state to exclude the payment while retaining the original payment data for reconciliation and audit purposes.
2. **Retroactive Interest Rate Change**:
  - **Scenario**: A borrower enters active military duty, requiring an interest rate adjustment to 6% under the Servicemembers Civil Relief Act.
  - **Action**: Loan Replay retroactively applies the new interest rate from the effective date and recalculates interest accruals, payment allocations, and fee balances.
3. **Retroactively Waiving Fees**:
  - **Scenario**: A lender decides to waive a late fee charged two months ago.
  - **Action**: Loan Replay omits the fee in recalculations, maintaining the original record for auditing purposes. All following calculations are adjusted accordingly.
4. **Retroactive Credit Application**:
  - **Scenario**: A borrower is approved for a hardship program with retroactive credit.
  - **Action**: Loan Replay applies the credit to a past date and recalculates the loan’s state from that point forward.
5. **Correcting Servicing Errors**:
  - **Scenario**: An agent processes a payment for the wrong amount or date.
  - **Action**: Loan Replay corrects the payment and recalculates the loan’s state based on the accurate information.
6. **System Bugs**:
  - **Scenario**: A system bug affects multiple loans.
  - **Action**: Loan Replay automatically replays all impacted loans and lines of credit, recalculating them with the corrected logic.


# Related Concepts

- **Processing Time**: Replay duration depends on the loan’s history and the number of events being processed. Complex scenarios may take up to 10 minutes.
- **Loan Locking**: During a replay, the loan is locked, and specific actions are temporarily unavailable.
- **Manual Triggering**: Agents can manually initiate a replay through the Agent Portal if necessary.
- **Sync Options**: Offers “Without Replay” for minor issues and “With Replay” for complex scenarios.
- **Integration**: Designed to integrate with existing systems and processes.
- **Training**: Ensure staff understand when and how to use Loan Replay effectively.


# FAQs

**Q**: Can I use Loan Replay for all types of loans?

**A**: Yes, Loan Replay supports various loan types, including complex products like lines of credit.

**Q**: Is there a limit to how far back in time Loan Replay can go?

**A**: Loan Replay can process changes from the loan’s activation date, covering its entire lifecycle.

**Q**: How does Loan Replay ensure data integrity?

**A**: Loan Replay maintains a complete and accurate record of all changes by preserving both the original and new loan histories.

**Q**: Can Loan Replay integrate with our existing systems?

**A**: Yes, Loan Replay is accessible via API for integration with other systems.

## See also

- **[Loan Lifecycle overview](/loan-lifecycle)** — Index of the full loan lifecycle from origination through closeout.
- **[Fees](/loan-lifecycle/fees/about-fees)** — How fees are configured and how Loan Replay handles retroactive fee changes.