Reperforming Loan - RPL


DEFINITION of 'Reperforming Loan - RPL'

A loan on which the borrower was behind on payments (delinquent) by at least 90 days but has resumed making payments. The payments that the borrower missed have not necessarily been paid, however.

Often, the borrower of a reperforming loan has filed for bankruptcy and has continued making payments as a result of the bankruptcy agreement. Borrowers whose loans are classified as reperforming will have fewer refinancing options because of their past delinquencies.

BREAKING DOWN 'Reperforming Loan - RPL'

For mortgage investors, reperforming loans are considered risky (much like subprime loans). They fall into a category known as "scratch-and-dent" loans. Rating agencies look at a borrower's repayment patterns and the lender's ability to manage the loan in determining investment risk for reperforming loans. That stands in contrast to a nonperforming loan, in which the borrower has not made payments for over 90 days and has not resumed repayment of the loan.

  1. Foreclosure - FCL

    A situation in which a homeowner is unable to make principal ...
  2. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  3. Delinquent Mortgage

    A mortgage for which the borrower has failed to make payments ...
  4. Nonaccrual Loan

    A nonperforming loan that is not generating the stated interest ...
  5. Default

    1. The failure to promptly pay interest or principal when due. ...
  6. Bankruptcy

    A legal proceeding involving a person or business that is unable ...
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  1. Do FHA loans have prepayment penalties?

    Unlike subprime mortgages issued by some conventional commercial lenders, Federal Housing Administration (FHA) loans do not ... Read Full Answer >>
  2. Can FHA loans be refinanced?

    Federal Housing Administration (FHA) loans can be refinanced in several ways. According to the U.S. Department of Housing ... Read Full Answer >>
  3. Can FHA loans be used for investment property?

    Federal Housing Administration (FHA) loans were created to promote homeownership. These loans have lower down payment requirements ... Read Full Answer >>
  4. Do FHA loans have private mortgage insurance (PMI)?

    he When you make a down payment from 3 to 20% of the value of your home and take out a Federal Housing Administration (FHA) ... Read Full Answer >>
  5. How many FHA loans can I have?

    Generally, the Federal Housing Administration (FHA) does not insure more than one mortgage per borrower. This is to prevent ... Read Full Answer >>
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    Loans insured by the Federal Housing Administration (FHA) on or after Dec. 15, 1989, are assumable by qualifying borrowers. ... Read Full Answer >>

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