Peach's Loan Replay™ functionality allows for retroactive changes to loans and automatically recalculates a loan's history to reflect those changes. This means that if a change is needed on a loan, Peach can "rewind" to the relevant point in the loan's history, make the necessary adjustment, and then recast all subsequent events, recalculating balances and interest accruals. Of course, auditing is critical while the active state of the loan will show the relevant changes, the ledger is immutable and tracks the full evidence chain of the loan’s history and timestamped actions.
For example, if a payment fails after it was made, Loan Replay can account for the additional interest that would have accrued. Loan Replay also simplifies the process of applying changes retroactively, such as when a borrower makes an overpayment. This Loan Replay capability enhances the accuracy and efficiency of loan management by ensuring that loan data is always up-to-date and reflective of the actual loan activity, even when adjustments are needed after the fact.
Here are some key features of Peach's Loan Replay:
- Automatic Recalculation: Once a retroactive change is made, Loan Replay automatically recalculates the loan's entire history from the point of change. This includes updating interest accruals, payment applications, loan status, due or waived fees, and all other relevant loan data.
- Preserves Loan History: Loan Replay maintains a complete and accurate record of the loan's history, both before and after any retroactive changes.Accessibility: Loan Replay can be accessed through Peach's Agent Portal, providing a user-friendly interface for agents to make adjustments, or via API for automated processes.
- Use Cases: Loan Replay supports a wide range of use cases, including backdating payments, failing past transactions, and retroactively changing interest rates. This versatility makes it a powerful tool for managing loan modifications and ensuring data accuracy.
Loan Replay is a key capability that contributes to Peach's overall goal of providing lenders with a modern, flexible, and scalable loan servicing platform. Read more on how Loan Replay works with one of our founders, Eran Sandler. Looking for how Loan Replay works in your Peach environment, check out our Loan Replay technical guide.
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.
