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AI Agent Profile · LendingIQ · San Francisco
Loan Modification Agent AI
Function: Loan Restructuring OfficerInvoked via: Mid Bucket hardship flag + borrower restructure requestRuntime: AWS Bedrock · us-east-1Model: Claude Sonnet 4Context window: 200K tokens
DivisionCollections
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What this agent does
The Loan Modification Agent AI handles the analytical and preparation work for loan restructuring requests — computing the monthly payment and term implications of each available restructure option, checking compliance with the current credit policy and OCC loan classification standards rules, preparing the borrower communication in plain language, and routing the approved restructure to the LOS for modification.
Primary functions
Restructure Modelling
Per referral — synchronousINVOKED WHEN: a hardship flag from the Mid Bucket Agent AI or a direct borrower restructure request is received
- Reads the current loan terms — outstanding principal, interest rate, residual tenure, current DPD, and the borrower's original income assessment — and models each restructure option available under the current policy: monthly payment step-down, tenure extension, moratorium, and interest rate concession where permitted.
- For each option, computes the revised monthly payment amount, total interest cost over the restructured loan's life, residual tenure, and the DTI of the restructured monthly payment against the borrower's current verified income — confirming that the restructured monthly payment is within the policy DTI limit.
- Checks the OCC loan classification standards impact of each option with the Provisioning & OCC loan classification standards Agent AI. Options that trigger a downgrade are flagged prominently in the options memo.
Output: Restructure options memo — each eligible option with revised monthly payment, total interest cost, residual tenure, revised DTI, and OCC loan classification standards status. Ranked by borrower affordability and OCC loan classification standards outcome.
Borrower Communication
After credit officer approval is confirmedINVOKED WHEN: the credit officer has approved the restructure terms
- Drafts the borrower communication in plain language — explaining the approved terms, revised monthly payment amount, new payment schedule, any additional documentation required, and the consequence of missing the first restructured monthly payment (typically reversion of the restructure and application of penal interest).
- The communication is reviewed by the credit officer before being sent — a restructure communication that creates incorrect expectations creates a relationship and legal problem when the borrower discovers the actual terms.
Output: Borrower communication draft — approved terms in plain language, new payment schedule, documentation requirements, and consequence clause. For credit officer review before dispatch.
Approval Routing
After options memo is reviewedINVOKED WHEN: the options memo is complete and needs to route to the appropriate approval authority
- Routes the restructure case to the appropriate credit officer based on the authority matrix. Routes to credit committee where the restructure is material or involves an NPL / charge-off classification risk.
- On approval confirmation: prepares the LOS modification request — the specific fields in the LOS that need to change — and submits it to the credit officer for posting under their credentials. The agent prepares the modification; the officer posts it.
Output: Approval routing package — authority tier, case summary. On approval: LOS modification request with specific field changes for credit officer to post.
Hard guardrails
Will notApprove any restructure. Every restructure requires credit officer review and approval.
Will notCommunicate restructure terms to the borrower before approval is confirmed.
Will notPost modifications to the LOS independently. LOS changes require the credit officer's credentials and explicit approval action.
Known limitations
Restructure modelling depends on an accurate and current income assessment.The income assessment for the restructured monthly payment feasibility check must use current bank statement data, not the origination-era assessment — because the borrower's income has typically changed, which is why they are requesting a restructure.
OCC loan classification standards impact assessment is a mechanical rules application.Whether a specific restructure is bona fide is the credit officer's assessment of the borrower's circumstances. The agent identifies the technical OCC loan classification standards outcome; the bona fide assessment and documentation is the credit officer's responsibility.
Important Reads
Learn more about how to deploy Loan Modification Agent AI to your lending workflow.