In just 10 days, the Peach team will be heading to Las Vegas for Money20/20. The conference is one of the largest in fintech, bringing together many of the foremost thinkers in the industry. We’re proud not only to attend but also to sponsor the event.
If you’re attending, stop by Booth 6552—or schedule a time to meet with us. We’d love to share some of the most recent advancements we’ve made in powering innovative lending programs.
As a leading modern loan management and servicing software platform, Peach provides API-first and cloud-native solutions for lenders looking for flexible lending tech. We enable lenders to quickly launch lending programs in virtually any asset class, and we provide more than 250 product configuration variables to give lenders maximum flexibility and scalability.
Our fully configurable lending platform is designed to help you stay nimble in a rapidly evolving market. It’s also designed to help you stay compliant in your servicing efforts. Our Compliance Guard™ module monitors borrower statuses and outbound servicing communications to ensure compliance with regulations like the FDCPA, SCRA, TCPA, UDAP/UDAAP, U.S. Bankruptcy Code and Regulation F.
At Peach, we’ve developed a few other novel capabilities, including Loan Replay™—an innovative way for you to easily make retroactive changes to the ledger. And for lenders looking to modernize existing lending portfolios, we’ve developed the industry-first Supported Portfolio Migration. We’ve streamlined the migration process to make it as painless as possible, ensuring data consistency and a seamless transition.
If you'll be at the show, we’re excited to meet with you, understand your challenges, and explore how our solutions can help. We’ll see you in Vegas.
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.
