Asset management includes any and all work on non-performing loans and on loans that have gone past their maturity date.
PeerStreet’s Asset Management team is our internal loan resolution team, and they work with the Servicing team as soon as a loan payment becomes formally late (i.e., approximately 15 days after payment is due) to take over the management of the loan in order to resolve any issues and get payments as soon as possible.
For non-performing servicing (e.g., servicing for loans that aren’t being paid properly, or have gone past maturity without paying), the Asset Management team’s work includes:
- Identifying the issues surrounding the late payment
- Establishing timelines for the necessary resolutions
- Reviewing the legal contract in place with the borrower, ensuring each party abides by the state’s laws
- Communicating resolution updates on our investors’ dashboards on a monthly basis
- Foreclosing on, and selling the asset to get investors paid back
For upcoming maturities, the Asset Management team’s work includes:
- Reaching out to the borrower in advance of the loan’s maturity date to ensure they’re aware of the timeline and legal ramifications for late payments
- Following the same general workflow as described above