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
- Complete Auditability: Generates detailed audit logs with events like
loan.interestaccrued,loan.balance.change, andpayment.appliedfor 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.
- Event Tracking: Continuously tracks all loan-related events using an event-sourcing system.
- Retroactive Change Initiation: Changes can be initiated through the Agent Portal or API.
- Event Backdating: Creates backdated events to adjust the loan’s historical state.
- Reprocessing: Reprocesses all subsequent events to reflect the changes.
- Recalculation: Automatically updates interest, payments, and other factors based on the new event history.
- History Preservation: Retains both the original and new histories, ensuring a complete audit trail.
- Ledger Update: Updates the financial ledger to reflect the recalculated loan state.
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.
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.
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.
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.
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.
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.
- 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.
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.
- Loan Lifecycle overview — Index of the full loan lifecycle from origination through closeout.
- Fees — How fees are configured and how Loan Replay handles retroactive fee changes.