we report to the credit bureaus. notice of credit reporting is provided at closing

we had a customer who's loans matured - once matured customer wanted to renegotiate terms - both lender and borrower knew the loans went into a delinquent status during this timeframe - all notifications (past due, maturity, SCRA Notice, HUD notice) produced and were provided to the borrower. both lender and borrower were o.k. and not concerned about any of this.

NOW borrower is refinancing another property and found that the loans were reported as late (30 & 90 day lates) this was due to the status during the renegotiation period. They have requested that we change the credit reporting to remove the late reporting.

If the delinquency was not COVID related and If the reporting is accurate why would you change it?

Agreed, some customers get the idea they don't need to pay on the loan just because you are negotiating a future loan.

I agree as well. I would not support updating a credit bureau report unless it was due to a bank error.

My only question would be whether the lender told the borrower not to worry about it.

My questions are: why did the bank not start negotiations sooner before maturity or talk to the customer to discuss that, and second, once that conversation began, why didn't you just do a short term extension to get through the maturity period and not put you or the customer in the position to start with?

I am more than a little concerned that your lender wasn't concerned. From the info you provided, I am looking at the bank here and not your customer and wonder what your lender told the borrower, and if the borrower truly understood the situation since they saw it as post maturity issue and loan negotiation. I'm leaning in the borrower's favor here.

That's where I was going with my question, but you said it much more eloquently.