There is a common practice in lending that, if an asset has been in delinquency for a period of time, the total amount due will be increase by an amount ,which compensate the delinquency behavior of the borrower
it could be a fixed amount fee, or balance based/ time-based fee charge.
Fixed Amount -> snapshot of reference balance * %
Time Based -> a period of weighted average balance * %
The extra income will flow into account for distribution waterfall
yellowbean
commented
1 month ago
There is a common practice in lending that, if an asset has been in delinquency for a period of time, the total amount due will be increase by an amount ,which compensate the delinquency behavior of the borrower
it could be a fixed amount fee, or balance based/ time-based fee charge.
%%The extra income will flow into account for distribution waterfall
Asset Class Coverage
PreRequisite
MortgageLoanInstallment