dv01 makes several modification-related fields available for users to leverage when evaluating loan performance:

  • Modified (Modification Indicator): Indicates whether a loan has been modified. 
  • Modification Date: The date on which the loan was modified; rolls up to a monthly value (e.g.; 01/15/2020 → 2020-01).
  • Modification Type: The type of modification provided to the borrower, as reported by the servicer.
  • Modification Count: Cumulative count of times a loan has been modified.  The count increases each time a loan changes to “Modified,” from any other value.  For example, a loan that had entered a short-term assistance program previously, and has opted to defer several payments due to COVID will see a value of 2 in this field.
  • Modification End Date: The end date of the modification period for the most recent modification; for permanent modifications, the approximate maturity date will be populated (calculated from modification start date + modification length).
  • Modification Reason: The reason for modification, as reported by the servicer.  Example values include, but are not limited to:
    • COVID
    • Unemployment
    • Medical

Please note, as the response to borrowers impacted by COVID-19 continues to evolve, dv01 is making a concerted effort to incorporate new programs, additional data points, and other relevant information as quickly as possible.

Using Modification Fields in the dv01 Application:

These fields can be accessed across the application.  Several recommended ways to incorporate these fields into various types of analysis are highlighted below:

Stratifying by Modification Indicator, Sub-Stratifying by Modification Type on Strats:

Stratifying by Modification Type, Sub-Stratifying by Modification Length on Strats:

Exporting various Modification fields on Loan Tape Export:

Filtering by various Modification fields across the application:

Grouping by Modification Indicator on Seasoning Analysis:

Filtering by Ever Modified on Historical Analysis:

There are also additional ways to examine modification trends on the Performance pages.  More details around Modification VolumePercent Actively Modified, and Percent Ever Modified can be found here.

Modification Types

The Marketplace Lending platforms that dv01 supports offer a wide range of modification programs to borrowers.  In its effort to standardize the presentation of modifications across the space, we consider the following types of borrower assistance programs to be modifications:

  • Principal forgiveness / reduction

  • Principal forbearance

  • Interest rate modifications

  • Term modifications (e.g.; 36 month re-amortized to 60 month)

  • Extension / recapitalization / re-ages (deferred / skipped payments)

  • Settlements

Borrower assistance programs are largely broken out into two categories:

  • Short-term assistance programs, where borrowers resume regular payments after either via skipped payments (referred to as extensions, forbearance, etc.), an interest-only program, or a reduced payment program.

  • Permanent modifications, where core terms of the loan (interest rate, term) are altered, or principal is forgiven.

For loans that have had permanent changes to the original terms of the loan, or are currently in an active short-term assistance program, the field will be populated with a “Modified” value.  For loans that have completed a short-term assistance program, or broken the terms of the modification, the field will be populated with a “Previously Modified” value. Loans with no active or previous modification will show up with a null / “Not Reported” value. 

As mentioned above, the range of modifications and payment programs offered across Marketplace Lending platforms vary quite a bit.  As a result, the values in the “Modification Type” field are reported as the raw value from several platforms and are not normalized. For questions about specific modification types, please reach out to support@dv01.co for more detail. 

Additional Details

  • Some platforms make more modification data available than others.  Modification Dates and Types may be inferred where limited data is available.

  • In the infrequent, but possible event that a borrower is granted multiple modifications, the modification fields currently supported will reflect the latest modification.  

  • Loans that move to the “Previously Modified” value after a short-term program is completed or a borrower breaks the terms of the modification will continue to fill the Modification Date and Modification Type values forward.