In loan underwriting, three main items go into the decision: income, credit and collateral. A loan underwriter has to answer three questions: Can the borrower afford to repay the loan based on verifiable income? Does the borrower's credit history support a pattern of repaying loans? Does the value of the property support the loan amount? Traditionally, these issues have been a secondary concern for servicers. For many years, the primary concern was collecting on loan notes and minimizing costs. Managing delinquent loans was an important part of service agreement reps and warrants, but it wasn't critical to the survival of the firm.
