Underwriting loans for affordability creates charges for loan providers

Underwriting loans for affordability creates charges for loan providers

Automated underwriting refers to a computerized scoring means typically put when assessing and pricing credit for higher-credit-quality borrowers

The CFPB estimates that the expense of complying using the proposed guideline may never be big for loan providers that already underwrite their loans, specially for all those currently engaged in automatic underwriting. 49 By contrast, handbook underwriting is a labor-intensive way of assessing and pricing credit for borrowers with impaired credit who can’t be priced making use of underwriting that is automated. (more…)