Credit unions face an upfront challenge in 2018. While on the one hand, rising mortgage rates combined with higher home prices is shrinking profits, on the other, bearing the brunt of the continuous increase in financial regulations, is leading to backlogs and delays. In the face of these two challenges, credit unions need an alternative business model – one that…
Underwriting
The effectiveness of legacy scoring methodologies to determine a borrower’s ability to repay has for long been on the wane. Its rigid approach to categorize borrower eligibility or reliability based on scores has been its biggest failure, as it has effectively put a large number number of credible and reliable borrowers out of reach of lenders. Today, lenders are desperate…
An underwriter’s job is to assess credit risk and borrower eligibility. It is the intricacy of their job that puts them under immense pressure to generate profitability, at the same time increase new business opportunities. Following the lending crises of 2007, many companies now seek disciplined underwriters that can provide compliance-friendly streamlined procedure. Even though there are many mortgage underwriting…