Lender-initiated

Referring to an action, process, or event that is directly started or instigated by a financial institution, typically a bank, credit union, or other entity that provides loans. This term often highlights actions taken by the lender independent of, or despite, the borrower's direct request or proactive behavior. It can relate to actions affecting a loan's terms, repayment schedule, or the initiation of legal proceedings. The defining factor is the lender taking the first step, often driven by risk management, financial performance concerns, or regulatory requirements. The trigger of the 'lender-initiated' action comes from within the financial institution itself, not by a borrower's request.

Lender-initiated meaning with examples

• The bank's 'lender-initiated' review of the mortgage occurred after a sudden drop in the borrower's credit score, indicating a higher default risk. This proactive measure allowed the lender to evaluate potential repayment challenges and explore modification options. The lender aimed to mitigate financial losses arising from possible borrower default. The review was independent of the borrower's input but crucial to manage its risks.
• Following a late payment notification, the lender launched a 'lender-initiated' call with the client, prompting them to discuss the repayment schedule with a financial advisor. This action aimed to prevent the client from defaulting on their loan while protecting the lender's own interests. This was done without the client's direct request for advice, offering a pre-emptive solution.
• Due to significant changes in the market, the lending institution implemented a 'lender-initiated' change to the interest rates on its variable-rate loans. All the borrowers would have to deal with this change as a result. The rate changes were designed to bring the loan's value in line with the lender's needs. Borrowers were simply informed, with no prior request or consent.
• The mortgage provider instigated a 'lender-initiated' foreclosure process when the homeowner failed to meet the terms agreed within the loan agreement. The foreclosure was based on breaches in the terms of the loan and designed to recoup the owed capital, completely independent of actions by the borrower, and solely on the lender's assessment of the situation.