Insight into PeerStreet’s Loan Performance Q4 2020

PeerStreet has always believed the more transparent, educational, and honest we are as a company, the better off all stakeholders in our marketplace will be. To that effect, PeerStreet continually strives to provide investors with more historical and current data of its loan performance. 

This is Volume 2 of PeerStreet’s continued commitment to provide insight into loan performance. View our first blog post on historical loan performance to understand the trends we’ve seen from a longer horizon. 

Key Definitions: 

L-30, L-60, L-90, L-120 = This means a loan has not made a payment in 30 days, 60 days, etc. 

Delinquent = PeerStreet classifies a loan as ‘delinquent’ when it is 60 or more days late (Late 60+). 

Foreclosure = The action of enforcing the lender’s rights under the loan documents, and potentially taking possession of the underlying property, when the borrower fails to keep up their payments. Once the foreclosure process starts, the most common outcomes are either: (i) the loan is reinstated or pays off before the property is foreclosed on or (ii) PeerStreet takes ownership of the property at auction resulting in an "REO". Properties taken over as REO are typically then marketed to be sold.

Default = A loan is labelled as being in “Default” when PeerStreet commences the foreclosure process. Foreclosure timelines vary from state to state.  

REO = “Real Estate Owned,” we have taken ownership of the property, usually as a result of the foreclosure process, but we have not yet sold it. 

REO Sale = Sale of the property.

This report outlines the loan performance PeerStreet has seen historically, how that performance has been impacted by COVID-19 as well as an overview of the real estate markets as we move to a post-COVID era. It is worth noting that, due to the pandemic, certain qualifying borrowers were granted mortgage payment deferrals. Deferred loans are categorized as paid current in the data sets below.

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Foreclosure timelines have been extended due to COVID-19.


*Foreclosure timelines are estimates and will vary depending on a variety of factors such as moratorium extensions, judicial impediments, etc., as well as loan-specific factors. **Cook County, Illinois (Chicago metro area) has issued a foreclosure moratorium until further order of the Governor, which may extend timelines further.


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As foreclosure referrals continue, loans in foreclosure are beginning to payoff.

*Foreclosure payoffs include only loans that were referred to foreclosure between April 2020 and December 2020.


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While some loans referred to foreclosure result in investor losses, the median return remains higher than the expected Investor Rate.

*Expected returns determined by investor rate and stated term of the loan. This data includes only loans (and REOs) that paid off by December 31, 2020 and excludes loans that are still outstanding, as the final return for outstanding loans has yet to be determined.


*Annualized returns are calculated based on distributions to investors. This data includes only loans (and REOs) that paid off by December 31, 2020 and excludes loans that are still outstanding, as the final return for outstanding loans has yet to be determined.


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As performing loans have paid off and delinquencies have remained constant, active pre-COVID investments are increasingly delinquent. All loans purchased since July are current and performing.

*Late status buckets are discreet groupings based on month end loan status. Data includes all active loans serviced by PeerStreet within the reporting month through December 31, 2020. L-120+ includes all loans more than 120 days late with the exception of loans that have transitioned to REO.
*Data includes all active loans serviced by PeerStreet within the reporting month purchased between July 2020 and December 2020


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Diversification can be an important source of risk mitigation.

*Expected yields are the output of a downside scenario simulation modeled using the PeerStreet active portfolio as of March 31, 2020 to normalize for a decline in active loan volume since pausing loan purchases in March. The graph shows the range of outcomes between the 90th and 10th percentile of investor yields taken over the life of the portfolio. The model does not consider reinvestment of principal. 


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DISCLAIMER: the data provided herein was generated from PeerStreet’s portfolio performance to date, may not be exhaustive or reflect market-wide trends, and is provided solely for informational purposes. Past performance is not an indicator or predictor of future performance. PeerStreet is not an investment adviser and nothing contained herein is, or should be construed as, investment advice. Investors should not rely on PeerStreet to make investment decisions and should independently evaluate the risks and merits of any investment opportunity themselves or in consultation with their own professional advisors.

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