Enervee is a climate tech company on a mission to make energy efficiency accessible to all. By combining data science, behavioral insights, and digital marketing, Enervee helps consumers buy energy-efficient appliances like washer/dryers, refrigerators, water heaters, and air conditioners to reduce emissions and save on utility bills. With the Inflation Reduction Act incentivizing energy-efficient measures, Enervee’s online marketplace matches consumers with energy-efficient appliances and applies eligible tax rebates and discounts at the point of sale. To overcome the barrier of high upfront costs, Enervee offers Eco Financing*—an installment loan option to help make energy efficiency affordable for all consumers, including those with less-than-perfect credit.
"Eco Financing* is all about democratizing access to energy-efficient products," says Matthias Kurwig, Enervee Co-founder and CEO. "We believe everyone should have the opportunity to make energy-smart choices, and with Eco Financing*, we're making that possible."
In 2023, Enervee sought a new servicing partner for its existing loan portfolio, leading them to Peach—a reliable, flexible, and compliance-driven solution that met the needs of Enervee’s capital partners.
Key servicing requirements
Enervee's requirements for Peach included:
- Precise interest accrual and payment application
- Automated data reporting to capital markets partners and credit bureaus
- Borrower portal with robust self-service capabilities
- Advanced analytics and reporting dashboards
- Integrated payment processing with real-time bank account balance checks to avoid NSF issues
- Migration capability to transfer existing loans to Peach’s system and recreate full loan histories
Additional opportunities identified
As the partnership deepened, Enervee and Peach identified additional opportunities to reduce costs and streamline operations:
- Integrated payment processing: Peach allowed Enervee to reduce maintenance costs and simplify investor settlements by replacing a previous payment processing vendor.
- Credit bureau reporting: Enervee bypassed a third-party credit reporting platform by using Peach's built-in Metro 2® capabilities.
- Automated compliance: Peach's Compliance Guard™ module allowed Enervee to demonstrate adherence to state and federal regulations, a critical value-add given today’s regulatory environment.
Implementation and migration
The implementation kicked off in late October 2023. New originations on Peach began in mid-December, and the migration of existing loans was completed in January 2024—12 weeks after signature.
"Metaphorically speaking, Enervee changed engines on a moving train without losing any cargo. This truly speaks to Peach’s ability to deliver," says Matthias Kurwig.
A growing partnership
As Enervee scales its consumer marketplace nationally, backed by Eco Financing* that makes energy-efficient appliances more affordable, the company needed a loan servicing platform capable of handling growing complexity, volume, and compliance requirements. Peach has delivered on all these fronts.
"Peach has proven to be a highly configurable, accurate, and reliable loan servicing platform that has quickly adjusted to our growing needs," says Kurwig. "This allows us to focus less on the mechanics of loan processing and more on meeting the needs of our customers and marketplace partners."
*Eco Financing by Enervee loan programs are owned and funded by Lewis & Clark Bank, Member FDIC.
lender’s priority list. But that doesn’t mean compliance is straightforward, even for lenders with the most earnest intentions. Often, legacy infrastructure is the culprit, making it difficult for lenders to take the actions clearly outlined in the law. Even regulations that haven’t changed for some time—like the—still present significant challenges for many lenders.
The SCRA grants active-duty service members the ability to request certain protections during the period of their deployment, enabling them to devote their energy to serving the country. These protections include a reduction in interest rate to a maximum of six percent on any pre-service loans. While the SCRA in its current version has been law since 2003, the number of recent enforcement actions indicates just how difficult it is for many lenders to comply with the SCRA’s interest rate protections.
Blunt tools in the absence of a scalpel
For example, in October of 2022 the Department of Justice (DOJ) announced that the financial leasing arm of GM agreed to pay over $3.5 million to resolve allegations in relation to
Peach’s approach to SCRA
At Peach, we brought real-life lending experience to the design of our platform. So from day one, we recognized the importance of being able to make retroactive changes to loans. (There are numerous applications beyond SCRA, including our Supported Portfolio Migration.) In the case of SCRA, Peach has long enabled lenders to retroactively change interest rates and waive past fees—as separate, manual actions.
Peach’s approach to SCRA
This was functional, but the ideal way to implement SCRA is to make these changes simultaneously. We now support this capability by leveraging the power of Peach's Loan Replay™ engine, which can make changes to the ledger at any time, and then recalculate a loan’s history in light of those changes. The new combined functionality is as user-friendly for your agents as processing a payment.
Peach’s approach to SCRA
Specifically, the new SCRA feature allows your agents to perform the following adjustments simultaneously on a loan of an active-duty service member:
- Lower interest rates to 6% (and lower the recurring payment during the active-duty period to account for the interest rate reduction)
- Waive fees, if necessary
- Enact these changes retroactively, if necessary, and replay the loan history with the rate and fee adjustments
- Preview the intended changes
“We launched our first product on Peach in six weeks. Eighteen months later.”
John Smith, CMO
Our SCRA functionality is available via API as well as through our white-label agent tool. The white-label agent interface can be seen here:
Peach’s approach to SCRA
Our SCRA functionality is available via API as well as through our white-label agent tool. The white-label agent interface can be seen here:
For those working directly with the API, this can be as simple as sending the following request body to the SCRA endpoint:
You’ll receive a response with either the actual post-SCRA adjusted payment plan or a preview of it. Below is a comparison of a payment plan prior to the SCRA adjustment, and the expected payments after the SCRA adjustment. The SCRA period is in effect for the first two months, and thus you will see the interest rates lowered to 6% in the response body (and the recurring amount due lowered by the amount of the interest rate reduction for the two relevant months). The origination fee has also been canceled.
The breadth of loan data needing to be adjusted means that rewriting loan histories requires the right design and abstractions, and having a built-in layer of abstraction to handle retroactive changes is the only feasible approach. Because of our team’s combined experience in the real world of lending, we know that the need to edit past loan events is inevitable. So we’ve designed a system that makes these changes as painless and automated as possible.
