Loan Hardship + Restructuring Lifecycle

Current, hardship requested, review, forbearance/modification, cure, re-age, and terminal default outcomes

Loan Hardship + Restructuring Lifecycle Current, hardship requested, review, forbearance/modification, cure, re-age, and terminal default outcomes 01 / Loan status 02 / Assessment + relief 03 / Terminal outcomes Current · 0 DPD, accruing · Loan status · performing 01 Current 0 DPD, accruing performing Hardship Requested · borrower attests · Loan status · intake 02 Hardship Requested borrower attests intake Under Review · eligibility + docs · Loan status · gate 03 Under Review eligibility + docs gate Modified · forbearance + TDR flag · Loan status · relief 04 Modified forbearance + TDR flag relief Cured · payments resumed · Loan status · recovered 05 Cured payments resumed recovered Denied · ineligible · Assessment + relief · declined Denied ineligible declined Re-defaulted · breached new terms · Assessment + relief · relapse Re-defaulted breached new terms relapse Re-aged · DPD counter reset · Assessment + relief · restored Re-aged DPD counter reset restored Defaulted · 90+ DPD · Terminal outcomes · terminal Defaulted 90+ DPD terminal Charged Off · written down · Terminal outcomes · terminal Charged Off written down terminal Legend active state waiting terminal success failure / exit

Relief Rail

  • • A loan moves from current through a reviewed relief plan
  • • Review is an explicit gate, not an implicit side effect
  • • Cured means the contractual payment stream has resumed

Servicing States

  • • Denied requests keep aging under the original schedule
  • • Re-default reopens the loss path after a modification
  • • Re-aging resets the delinquency counter once cured

Terminal Exits

  • • Sustained non-payment ends as Defaulted
  • • Uncollectible balances are Charged Off
  • • Every terminal write carries the triggering event id