We’re proud to officially announce our partnership with Mission Lane, helping power their Credit Builder Account—a new credit builder loan product aimed at setting consumers on the path to establishing strong credit.
Purpose-driven companies like Mission Lane that are pushing the boundaries of innovation in lending are helping create a better world for everyone. Learn more about the partnership in our press release.
An excerpt from the press release
OAKLAND, Calif.--(BUSINESS WIRE)--Peach Finance, a modern and configurable lending technology platform that helps lenders efficiently launch, grow and scale new lending products, today announced a partnership with Mission Lane, a purpose-driven financial technology company that provides better products and experiences for people trying to build or rebuild their credit and improve their financial lives.
The partnership is designed to power Mission Lane’s Credit Builder Account, a new credit builder loan product aimed at setting consumers on the path to establishing strong credit. As borrowers pay off the loan that is deposited into a secured savings account, they can build positive credit history while adding to their savings.
For decades, inflexible lending technology has slowed the pace of innovation within financial services, leading to limited choices for borrowers. Peach’s novel lending technology platform upends this construct by making it possible for every lender to be an innovator—from enterprise financial institutions to fintech startups. Peach will provide Mission Lane with a loan management system, a fully integrated suite of servicing tools and a compliance monitoring system, Compliance Guard™. Through Peach’s flexible infrastructure, Mission Lane will be able to quickly launch and scale the Credit Builder Account and future new lending products.
“At Mission Lane, we’re focused on serving consumers who don’t have ready access to quality financial products from traditional financial institutions,” said Mission Lane CEO Shane Holdaway. “We have an extensive roadmap of innovative products to support these consumers, which means that the robustness and dependability of our lending infrastructure is critical to our long-term success.”
According to Holdaway, innovative products like those offered by Mission Lane require a software platform that’s flexible and modern enough to support novel constructs and configurations.
“Legacy technology solutions were built for yesterday’s lending programs, and aren’t designed to serve all types of consumers. As we launch innovative products like the Credit Builder Account, our partnership with Peach will help us continue to build on an all-in-one platform that can support modern and innovative approaches to lending, and can scale with us.”
Eddie Oistacher, Co-Founder and CEO of Peach, added: “Mission Lane is a sophisticated lender doing innovative and important work to expand financial access for underserved consumers. They have quickly grown their credit card product to enterprise scale, and we’re excited to partner with them as they scale additional lending products in support of their mission.”
Peach is designed to be the first lending technology platform that is both compliance-first and fully configurable. The platform is…(continue to Business Wire)
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.
