How does PeerStreet categorize loan payment status?

Performing
A loan is “Performing” when all payments due have been made and distributed to investors.

Paid Off
A loan is “Paid Off” when all principal has been paid in full and distributed to investors.

Late 30
A loan is “Late 30” when one payment is a month past due. The borrower must make one payment to bring the loan current. Borrower payments are due in arrears. For example, a loan with a payment date of October 1st, would be considered “Late 30” on November 1st if the October 1st payment is not made by November 1st.

There are several reasons why a loan might fall into the “Late 30” category, including:

• Onboarding Logistics: In some cases, the borrower experiences delays in sending their payment to the new servicer or mistakenly sent their payment to the previous servicer associated to the loan prior to PeerStreet purchasing.
• Sale or Refinance Negotiations: The borrower is finalizing the refinance, sale or payoff of the property imminently.
• Non-Payment: The borrower did not make a payment for a miscellaneous reason.

There are several parties involved in all servicing aspects of a PeerStreet loan: PeerStreet’s Servicing Team, PeerStreet’s Third-Party Servicer and Original Lender of the Loan.

PeerStreet’s Servicing Team and/or Original Lender on the loan will reach out directly to the borrower to understand the reason for late payment. PeerStreet’s Third-Party Servicer sends 1st and 2nd late notices at 11 and 21 days, respectively, after a loan’s payment due date if payment is not confirmed as received. In cases of sale or refinance, PeerStreet will request proof of discussions and progress to further understand the timeframe for completing these negotiations.

Late 60
A loan is “Late 60” when two payments are a month past due. There are two main reasons a loan might be in the “Late 60” category

• Sale or Refinance Negotiations: The borrower continues to finalize the refinance, sale or payoff of the property. PeerStreet requires proof of refinance and sale documentation and confirmed timeframe for loan.
• Continued Non-Payment: The borrower has not resolved the delinquent amount despite attempts from PeerStreet and/or Original Lender.

PeerStreet’s Servicing Team and the Original Lender will reach out to the borrower to get additional context on why payment was missed. If borrower is responsive, PeerStreet’s Servicing will request a timeframe for when loan will be brought current. Third-Party Servicer escalates to their delinquent loan processes with additional phone calls and notices. The borrower is made aware of default procedures should the loan not be brought current in the coming days. At any point in the process, if no party can reach the borrower for a period of 15 days, then PeerStreet’s policy is to begin the foreclosure process. Also, if a loan reaches a “Late 90+” status, it is PeerStreet’s policy to begin the foreclosure process.

"Late 60" loans will have loan status details provided on the Positions Dashboard.

Typical time frames for resolution:

• Sale or Refinance Negotiations: 1-50 days
• Continued Non-Payment: TBD on a Case-by-Case Basis

Late 90+
A loan is “Late 90+” when three or more payments are a month past due. If the borrower is unable to make all past due payments, loans are considered on a case-by-case basis but generally, PeerStreet will start the foreclosure process.

After the foreclosure process has begun, the borrower may still bring a loan current prior to the foreclosure sale. However, timeframes will vary for judicial vs. non-judicial states. In judicial states, the lender files a lawsuit in court in order to foreclose. In non-judicial states, the lender can foreclose without going through the court system.

Default
A loan is in ”Default” when the foreclosure process has been initiated. At this point, PeerStreet continues to communicate with the lender and borrower, while also moving forward with the foreclosure process.

Short Pay
A loan is a “Short Pay” when PeerStreet does not receive the full principal amount of the loan. A “Short Pay” is determined on a case-by-case basis, attempting to maximize the estimated principal recovery and minimize the time it takes to resolve.

REO
A loan is “REO” (Real Estate Owned) when PeerStreet takes ownership of the property. PeerStreet then works to liquidate the property quickly and efficiently. Once a sale occurs, PeerStreet collects and distributes the net proceeds to investors.

NOD
A Notice of Default (“NOD”) is an official notification that is sent to the borrower and recorded against the property after the loan becomes significantly past due.