• Default interest: In the event of payment or maturity default, the borrower may be required to pay default interest until the loan is brought current or gets paid in full. In those cases, PeerStreet splits default interest and will distribute 50% of the proceeds collected to investors on a pro rata basis once it’s collected.
  • Extension fees (including forbearance fees): There are a couple types of extension options. There are those that are negotiated at origination (i.e. borrower extension options) and those that are granted on a situation-by-situation basis after the initial maturity date. For pre-negotiated extensions, there can either be an agreed upon fee associated with the option or it may be given at no fee. The situational extensions are typically granted on, or after, maturity and the borrower will be charged a fee in exchange for being granted that option. In any case, where PeerStreet collects extension fees, 50% of those proceeds will be distributed to investors on a pro rata basis once we’ve received them.