The graph below provides an example of a schedule of repayment performance to demonstrate a determination of six consecutive payments.
In a written statement, BlueHippo said that most shipping delays involved customers who failed to make the required consecutive payments.
That rehabilitation program erases a default from a person's credit report after nine consecutive payments over a 10-month period to a debt collector.
To release a co-signer from a loan, Navient requires the borrower to make a minimum number — usually 12 — of "consecutive, on-time payments". But if someone did not make a payment one month because their bill was $0, Navient treated that as a failure to make "consecutive" payments — and it then reset the borrower's consecutive-month payment count to zero.
A sustained period of repayment performance would be a minimum of six consecutive payments and would involve timely payments under the restructured loan's terms of principal and interest in cash or cash equivalents.
The loan, therefore, would remain on nonaccrual for at least five post-workout consecutive payments (Months 6 through 10) provided the borrower continues to make payments consistent with the restructured terms.
The dire prediction stems from problems the consumer watchdog identified in the federal student loan rehabilitation program, which erases a default from a person's credit report after nine consecutive payments over a 10-month period to a debt collector.
Restore to Accrual on Member Business Loan Workouts Formal restructure with a current, well documented credit evaluation of the borrower's financial condition and prospects for repayment under the revised terms The evaluation must include consideration of the borrower's sustained historical repayment performance for a minimum of six timely consecutive payments comprised of principal and interest.
And unregulated institutions still have a fair degree of discretion over whether loans are described as current; some require three consecutive payments to be made, others just one.That is just one problem for investors in mortgage-backed securities; it is shared with those who own structured products, such as collateralised-debt obligations (CDOs) that might buy mortgage-backed loans.
Banks can only increase the interest rates on an existing balances if the borrower misses two or more consecutive payments.
Another forbearance would not be granted until 12 consecutive payments have been made.
