What is the effect of a changes in due dates action?

• A. It extends term and increases interest
• B. It changes the due date to ease payment
• C. It waives principal
• D. It triggers default

Answer: (B)

Shifting the due date is a modification of the loan’s payment schedule designed to fit the borrower’s cash flow. By changing when payments are due, the lender makes it easier for the borrower to meet obligations without altering the amount owed. The total principal isn’t waived, and this action doesn’t automatically trigger default. It’s about timing—adjusting the due date to ease payment, not changing the loan’s core terms.