Identifying Accounts in Forbearance

During the lending process, you may encounter accounts in forbearance or being deferred due to temporary financial hardship related to the COVID-19 pandemic. It is easy to determine which accounts are in one of these statuses by viewing the credit report. You will see the following indicators:

1. ACCOUNT IN FORBEARANCE (Special Code “CP”)

2. ACCOUNT AFFECTED BY NATURAL OR DECLARED DISASTER (Special Code “AW”)

In addition, you can utilize the following ARC services to identify if any accounts are newly in forbearance or deferred before closing:

• Portfolio Review

• Manual Verification | Supplement Request

• Refreshed Credit Report

For more information about services you can use to identify newly effected accounts, please contact us at education@arcreports.com.