Underwriting Analysis

What trends are affecting future credit risk?

Regulators are increasingly worried that commercial underwriting standards have weakened over the last several quarters, which suggests an increasing risk appetite. According to the Fed’s July 2014 Senior Loan Officer Opinion Survey, a small, but not immaterial, sample of the respondents reported that they had eased collateralization standards for both the larger and smaller customers.

We looked at the RMA/AFS® Risk Analysis Service C&I data to see if we could find any concrete evidence that such relaxation in underwriting criteria—and in particular, collateralization standards—had in fact taken place for C&I loans.

So what’s actually happening? Download this free report to find out.