Loan Status
Loan Status
4 terms · 7 articles · 1 lesson on loan status.
Loan status drives pricing, resolution strategy, and the legal remedies available. A performing loan is current and trades at 75–100%+ of UPB. A non-performing loan (NPL) is in default and trades at 7–83% of fair market value (first lien) or 2–60% of UPB (second lien).
Re-performing loans were once delinquent but resumed payments after a workout — they trade at a discount to seasoned performing notes, with most institutional buyers requiring 6–12 months of post-modification payment history. Resources below explain transitions between each status.
Articles
June 1, 2026
VideoThe State of the Industry and the Future of Finance
The structural forces behind note investing — housing undersupply, default cycles, and institutional sell-off pressure — are permanent, not cyclical.
May 20, 2026
VideoBest Price vs. Best Execution in Whole Loan Sales
Best price vs. best execution in bank loan sales: how each strategy works, when banks choose one over the other, and what it means for note buyers.
April 13, 2026
ArticleBanks Only Have $2.08 for Every $1 Past Due
Bank reserve ratios have dropped to $2.08 per $1 past due, forcing lenders to sell NPLs. Why shrinking reserves create opportunity for note investors.
April 6, 2026
ArticleWhy Can't You Buy Mortgage Notes Directly from Banks?
Banks sell mortgage notes to institutional buyers, not individuals. Learn why — and where to source notes through the secondary market instead.
February 1, 2026
ArticleWhat Is Mortgage Note Investing?
Mortgage note investing explained — how buying and selling notes works, who the key players are, and why investors choose this asset class.
November 27, 2025 · Ep. 8
PodcastWhy Default is an Opportunity
If you’re avoiding non-performing loans out of fear, you’re likely missing the most profitable part of the mortgage note business.
November 11, 2025 · Ep. 3
PodcastPerforming vs Non-Performing Notes
Performing vs. non-performing mortgage notes compared. Understand the pros, cons, risk profiles, and strategic plays behind each note type.
Lessons
Encyclopedia Terms
Performing Loan
A performing loan is a mortgage note where the borrower is current on payments, offering investors predictable cash flow backed by real estate collateral.
Re-Performing Loan
A re-performing loan (RPL) is a previously defaulted mortgage now making payments after a modification, priced between NPLs and performing notes.
Re-Performing Note
A re-performing note is a previously defaulted mortgage note now making payments after a workout, priced by post-modification payment history length.
Seasoning
Seasoning is the age of a mortgage loan since origination, affecting pricing, risk assessment, and eligibility for resale or securitization.