Representative capture · 10 Jul 2026
Loss-mitigation workout
Cadre pack · Concord
Tests proposed terms against supplied policy and affordability inputs, or records an impasse for review.
One frozen, sanitized execution on representative data. It shows an observed path and retained decision—not repeatability, production fitness, legal instruction, or regulatory compliance.
Recorded decision
Decision record
Workout Committed — Agreement on L11
Borrower: Andre Mensah | Product: Auto | Outcome: Agreement (2 rounds)
Concession Bundle
| Lever | Before | After | Policy Limit | Status |
|---|---|---|---|---|
| Interest rate | 9.49% | 6.49% (−3.0%) | −4% max / 2% floor | pass Within policy |
| Loan term | 60 months | 72 months (+12) | +24 mo / 96 mo max | pass Within policy |
| Forbearance | — | 6 months | 6 mo max | pass At policy max |
| Principal deferral | — | 0% | 20% max | pass Not needed |
Payment & Affordability
| Metric | Value | Threshold | Result |
|---|---|---|---|
| Original payment | $503.93 | — | — |
| Modified payment | $403.32 | ≤ $430 stated | pass Affordable |
| Affordability ratio | 0.09 | ≤ 0.36 | pass Well within cap |
| Reduction | $100.61/mo (−20%) | — | — |
Rationale
The hardship is temporary (reduced hours, fixed contract, 9 months). The two-lever stack — a 3% rate cut plus a 12-month term extension — brought the post-forbearance modified payment to $403.32, safely below the $430 affordability threshold. The 6-month forbearance (policy maximum) covers the first two-thirds of the hardship window; the borrower confirmed they can sustain the modified payment of $403.32 for the remaining 3 months while hours are still reduced, and will revert to full performance upon income recovery.
No principal deferral was needed, preserving bank economics. All concessions sit inside the policy envelope. The control plane may now book the modification.
Inspect the observed pathOpen the sanitized reasoning, actions, and ordered event record behind this decision.
Observed path
This is the retained public trace from one frozen representative execution. It is not a live run, a repeatability claim, or a complete production audit record.
I'll kick off by pulling the loan, hardship facts, and policy envelope in parallel — all three are independent.
Situation summary before I open:
- Loan L11 (Andre Mensah) — $24,000 auto, 9.49% rate, 60-month term, current payment $503.93
- Post-hardship income: $4,500 → affordable payment target: $430 (ratio cap: 0.36 × $4,500 = $1,620, non-binding here)
- Gap to close: ≈ $74/mo
- Hardship is temporary (9 months), so forbearance is a natural lever — but max is 6 months
- Policy allows: rate cut ≤ 4% (floor 2%), term extension ≤ 24 mo (max 96 mo total), forbearance ≤ 6 mo, principal deferral ≤ 20%
Opening strategy: Lead with 6-month forbearance (covers most of the 9-month hardship window) + a 2% rate cut + 6-month term extension as a moderate but meaningful opening. Run both the borrower round and the offer check in parallel.
Round 1 read-out:
- My offer got the payment to $444.78 — within policy but $14.78 above the $430 target → not affordable
- Borrower wants 9-month forbearance (policy caps at 6 months) — I cannot extend beyond that hard limit
- The real ask: post-forbearance modified payment must be ≤ $430 for the remaining hardship months
Round 2 strategy: Forbearance is capped at 6. I'll compensate by deepening the rate cut to 3% and extending the term to 12 months — this should push the post-forbearance payment well below $430, covering the borrower during the 3-month gap. Check offer simultaneously.
Round 2 verdict — both constraints satisfied:
| Check | Result |
|---|---|
| New rate: 9.49% − 3% = 6.49% | ≥ 2% floor ✓ |
| Rate cut 3% | ≤ 4% max ✓ |
| Term extension 12 mo → 72 mo total | ≤ 24 mo / ≤ 96 mo max ✓ |
| Forbearance 6 months | ≤ 6 mo max ✓ |
| New payment: $403.32 | ≤ $430 stated target ✓ |
| Affordability ratio: 0.09 | ≤ 0.36 cap ✓ |
| Borrower accepts | ✓ |
We have a deal in 2 rounds. Committing now.