Underwriting for sub performing

[Peter Halliday]

I understand how to underwrite a performing note. I also understand that underwriting a non-performing note is about checking the return against several possible exits. And you create an offer based on the likelihood return give the exits possible and their likelihood.

I saw a loan the other day that was listed as performing, but was sub performing. They borrower mostly consistently paid, but not the full amount. I’m wondering if people usually build a different mode entirely for sub performers like this, or if they build a non performing model that can handle it.