Reage Programs: A Strategic Lever for Portfolio Health

We help you design and implement effective loan reage programs that support borrower rehabilitation, improve loan performance, and rigorously maintain regulatory compliance. Our approach transforms distressed accounts into performing assets, preserving long-term portfolio value.

Key Components & Design Considerations
We tailor reage solutions to fit your product mix and risk appetite by:

• Eligibility Criteria: Defining precise rules based on delinquency status, payment history, hardship indicators, and prior program usage.
• Reage Structure: Determining the optimal program design (e.g., payment frequency adjustments, term extensions) and eligible reage count over a loan's life.
• Documentation & Disclosures: Ensuring all required borrower communications are clear, timely, and compliant with relevant regulations.
• System Configuration: Mapping reage workflows and rules into your servicing platforms and decision engines for seamless execution.
• Risk & Reward Balancing: Structuring programs to maximize borrower success while managing potential re-default risk.

Operational Levers & Tools
We make reage programs scalable and manageable through integrated operational tools:

• Automated Qualification: Building digital or system-driven workflows for efficient borrower qualification and offer presentation.
• Agent Enablement: Providing frontline teams with decision-making tools and clear scripts to explain reage options empathetically and compliantly.
• Performance Monitoring: Implementing dashboards to track reage enrollments, post-reage performance, and long-term cure rates.
• Compliance & Audit Trails: Embedding regulatory checkpoints and maintaining meticulous audit trails for all reage actions and communications.

Why It Matters: Value to the Bank
Implementing robust reage programs delivers significant benefits:

• Improve Portfolio Performance: Convert non-performing loans back into revenue-generating assets, reducing delinquency and charge-offs.
• Enhance Customer Relationships: Offer a path to financial stability, fostering loyalty and positive brand perception during hardship.
• Strengthen Regulatory Posture: Demonstrate a proactive and fair approach to loss mitigation, improving exam readiness.
• Unlock Hidden Value: Turn potentially charged-off accounts into performing loans, preserving capital and minimizing losses.

Risks & Controls
We rigorously mitigate key risks associated with reage programs:

• Preventing Misuse: Implement controls to ensure programs are applied consistently and prevent borrower gaming.
• Managing Re-Default: Design realistic re-entry criteria and monitor post-reage performance to minimize subsequent defaults.
• Ensuring Compliance: Validate that all reage actions and disclosures meet fair lending, Reg F, and other regulatory requirements.

How We Partner to Build It
We collaborate closely with your servicing, risk, compliance, and systems teams to design and operationalize reage programs that align with your business objectives and regulatory expectations. We help define eligibility, create workflows, support system integration, train your teams, and build measurement frameworks. Our goal is to ensure your reage program is effective, controlled, and sustainable.

Why Spinnaker?
We’re former operators, risk leaders, and strategists in the banking industry who’ve been in your shoes. Every consultant on our team has over 10 years of real-world experience leading credit risk, collections, compliance, and analytics functions at banks and fintechs. We have managed through the last recession and the pandemic. We know what works because we've done the work. That’s why our solutions are practical, actionable, and designed to perform in the real world.

Contact us today for an exploratory conversation: Shawn.Sweeney@SpinnakerConsultingGroup.com