A New Paradigm in Loan Underwriting: Cash-Flow & Residual Income Analysis
What do banks and lenders need to know about changing credit underwriting standards, and what’s on the horizon for residual income?
As alternatives to traditional credit scoring become better understood and prove reliable in predicting default risk, banks and lenders will have both a responsibility and a strong financial rationale to adopt them. By doing so, they will open the door to homeownership to many creditworthy customers who have been disenfranchised by outdated credit score-based underwriting.
This report from FormFree showcases what the financial community needs to know about how cash-flow and residual income analysis are changing credit underwriting standards.
