Would they actually record arrears for a loan if a hardship "repayment holiday period" had been granted?
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At HM I honestly cannot say what happens....
Over at LC, when a Defaulting Loan gets to 90 Days old, then it is Removed.....!
I guess if a loan has been granted a hardship repayment holiday, then payments will not be due until after the hardship holiday period ends. Only then if payments are not resumed by the new due dates would it be in default. So perhaps the covid hardship payment holidays have merely postponed the day of reckoning for some loans. Also, some borrowers who may have struggled regardless of the Covid measures, may have been able to latch onto Harmoney's covid hardship response to delay their day of reckoning?
I'm folllowing and liking your Logic... BJ
Current 87.51%
Arrears 3.71%
Hardship 8.44%
Protect Waiver 0.34%
Current 85.3%
Arrears 3.9%
Hardship 10.8%
Current 85.2%
Arrears 7.4%
Hardship 7.0%
P Protect 0.4%
Hardship 6.9%
Arrears 2.5% (1.7% >30 days)
I suspect that some loans that would normally be in arrears have ended up in hardship, but given the meagre returns from the Harmoney collections process I'm fine with that in the hope that some of them return to current status.
I'm finding that the ratings meant very little a lot of my defaults are the better graded loans!