Archive for July, 2012

Q. Why is underwriting so difficult? A. “Defensive Lending”

July 17, 2012

This article introduces the idea of “defensive lending” as a main reason that underwriting is so difficult. “”Defensive lending is the mortgage equivalent of defensive medicine,” where doctors run more tests than needed to reduce litigation risk. “Rather that more medical tests, mortgage lenders are adding underwriting requirements and program restrictions to avoid overstepping a […]

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