Delinquency & arrears

Delinquency is a fact about an active obligation, not a lifecycle state. A loan that is 22 days past due is still ACTIVE; the delinquency overlay changes collections, fees, reporting, and eligibility facts without replacing the underlying state. Because it is derived from the authoritative ledger, no one “sets” delinquency—postings change it.

Days past due and buckets

Days past due measure how long the earliest unmet scheduled obligation has been outstanding: the loan’s derived overdue-since date counted forward to the current business date. A loan with any positive days past due is delinquent; otherwise it is current. The days-past-due figure rolls up into a standard bucket:

On May 1, 2027, Harbor is 22 days past due with $517.14 past due—bucket DPD_1_29. Product policy can configure an arrears tolerance and grace on arrears aging before an unpaid amount starts the clock; like every calculation setting, the policy the loan resolved at origination stays with the loan.

Read the position from the loan summary—GET /v1/loans/{loanId}/summary carries the overdue components alongside balances and payoff—rather than recomputing it from the raw schedule.

What recalculates delinquency

Delinquency is recalculated whenever a transaction posts against the loan, and a scheduled pass keeps quiet accounts aging as the business date advances. The recalculating events are the ones that change effective posted history:

• Value-dated and backdated postings. Harbor’s ACH debit settles September 15 but posts value-dated September 12, the date the borrower paid—allocation and delinquency are recomputed from September 12, not from settlement day. Backdating replays dependent allocation and accrual deterministically; it never edits posted lines.
• Returned payments. A return reverses the posted allocation with explicit linkage, and delinquency recalculates from authoritative posted history. See reverse a payment.
• Schedule modifications. A re-age or re-amortization produces a new authoritative remaining schedule, and delinquency is measured against it from then on. Transaction history still shows which obligations went unpaid, so reporting can distinguish delinquency cured by payment from delinquency resolved by modification.
• Charge waivers. Waiving a charge posts a non-cash transaction that can reduce amount due and delinquency.

In-flight payments

A covering payment in flight is recognized provisionally: the loan summary exposes the inFlightPaymentAmount next to the authoritative balance, scoped to the covering amount and visible—not a hidden balance adjustment. If the debit fails or returns, the protection ends and delinquency is recalculated from posted history. Payments & repayments walks the full timeline.

Late charges

Late charges are ordinary charges under the charge model: a configured definition with its calculation method, penalty flag, finance-charge classification, amount bounds, and ledger accounts. The applied charge carries assessed, paid, waived, and outstanding amounts under a stable loan-charge id, and charge frequency policy on the definition prevents business duplicates such as two late fees for one installment. Forgiveness runs through the governed charge waiver, never a balance edit.

How delinquency feeds servicing

The lending core is the only delinquency calculator. When a loan’s position changes—state, bucket, days overdue, or the covering in-flight amount—a deduplicated change signal is emitted; an unchanged position emits nothing. A qualifying signal opens or exactly deduplicates a collections case, and servicing reads join those financial facts—daysOverdue, delinquencyBucket, overdueAmount, with their financialFactsSource—to contact and promise state. The servicing plane never recomputes delinquency; it decides what work is permitted on top of it.

For portfolio analysis, the delinquency roll report produces one row per loan and bucket date from effective payment facts and bucket policy.