If the modification is based on an updated credit decision involving an assessment of the borrower’s credit history and capacity, would such assessment impact how the loan is reported?
Yes, if the decision to permit the modification is conditioned or otherwise based on updated borrower credit factors, notably the FICO® score, then a FICO <= 660 score results in the loan being subprime and may impact collateral reporting. Obtaining a credit report or score solely for assessing the health of a loan or loan portfolio does not impact the reporting of such loans.
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