Tuesday, February 24, 2009

Forensic Underwriting – when is ‘enough’ too much?

Forensic Underwriting

The hardening of credit criteria in Ireland is only one facet of the restrictive flow of lending, another is the increasing evidence we are seeing of 'forensic underwriting' where lenders are looking deeper and deeper into applications before giving approvals. While prudent lending is to be championed, going too far is not. The article talks about some of the factors involved.

Posted by karl deeter @ 04:07 PM (677 views)
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One thought on “Forensic Underwriting – when is ‘enough’ too much?

  • “the greatest achievement of banks is that they take together strangers (the deposit base) in order to lend to strangers (the borrowers) they are a cornerstone of modern civilisation alongside things such as constitutions and the judiciary.”

    Good to hear somebody say something positive about banking for a change.

    “If a person worked for a company for the last 14 years is it right to pull up those company accounts and refrain from lending based on the fact that their net profit wasn’t to a lenders liking? This disregards the ability for company owners to maximise their profits, if a director wants to withdraw more wages one year or make extra pension contributions then retained earnings – particularly in cash-flow rich companies are not as vital as in other companies. If a director was aware that this action was hurting their worker they would also be highly upset.”

    Considering the state of the banking sector, this would suggest that bankers work in an irony-free zone, if it happens.

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