Loan Underwriter & Processor

Loan Underwriter & Processor

 Increase the availability of loans to SME at the competitive edge and scale up the SME business.
Onesuccessfulfinancing, willimprove the level ofrisk value, so thatthe borrowerwillget amuch larger financialincentivesandwaiversof interest andfinancing services.

IPasar ClearingB2B operate online and utilize technology to lower costs versus the traditional way and we connect borrowers tofinancial community and investors, where small business owners lower the cost of their credit and financial communityand investors earn attractive risk-adjusted returns.

In addition, we provide credit services to evaluate loans and predicting performanceaccurately and collection services to collect payments from borrowers in delinquent or in default.

Also, we offer lending intermediary that has a multi lender approch, which allows lenders to compete to finance SME.See more details: www.KliringPembiayaanKUKM.com or tradecredit.ipasar.co.id

Loan Underwriting
Underwriting is the process that a lender or other financial service uses to assess the creditworthiness or risk of a potential customer, also refers to an investment banker's process of packaging and selling a security or notes on behalf of a client.

Loan underwriters and processors serve an important function in the process of evaluating and approving loans and distributing their proceeds. After a loan application is completed and submitted, the loan processor reviews the loan application and attached documentation for completeness and accuracy. A loan underwriter evaluates the information on a loan application against various lending standards to determine if the applicant should receive the loan amount requested. These two positions make it possible for a lender to make loans and for a borrower to obtain the funds needed for the business.

Loan Underwriting Responsibilities

A loan underwriter’s job responsibilities include performing a detailed credit analysis of a borrower. The underwriter looks at a borrower’s business record, income sources and credit report. A borrower’s credit score, the amount of debt he carries and his payment history are other critical pieces of information an underwriter also considers. An underwriter determines if a borrower’s financial ratios, such as debt-to-income ratio, meet the bank’s lending standards. For collateral loans, the underwriter is responsible for evaluating the condition of the asset and determining that the borrower has or will get good title to the asset.

Loan Processing Responsibilities

A loan processor organizes the loan application’s documentation and makes sure it’s in order before the underwriter reviews the loan file. The processor typically contacts the borrower if information is missing or if additional information or documentation is required. He must review the documents received and determine if they comply with the lender’s standards. A loan processor’s responsibilities are less rigorous than the underwriter’s because the processor does not decide on loan approval. His review for completeness and accuracy of the loan file makes the underwriter’s job easier.

Explaining the Loan Process:

Your loan application will pass from the hands of the loan processor to the desk of the underwriter. In the loan underwriting process, an underwriter will make sure your financial profile matches your lender's guidelines and loan criteria. Then, your underwriter will make the final decision – to approve or deny your loan request.

The Job of an Underwriter – Assessing Risk

An underwriter's main task is to asses a borrower's risk. Have you ever declared bankruptcy or gone into foreclosure? Or, do you always pay your bills on time or have a fantastic credit score? These questions will reveal how you manage debt. They will also predict your ability to make the proposed loan payments.

The 3 C's of Underwriting: Capacity, Credit, and Collateral

To more easily assess a borrower's risk, loan underwriters follow a set of guidelines – the 3 C's of underwriting.

Underwriters typically begin by looking at:

1) Capacity – Do you have the resources and means to pay off your debts?

The first question a loan underwriter asks is: can the borrower repay the loan? Underwriters determine the answer by analyzing and reviewing the borrower's business, income, debt, and asset statements.

In particular, underwriters will take a close look at your debt-to-income ratio. They want to see that you have enough money to fulfill your current obligations as well as your new loan.

2) Credit – Do you have a solid re-payment and credit history?

As we previously mentioned, your credit is perhaps one of the most important factors in the loan approval process. Your credit report will reflect how you have handled and managed repaying past bills (car loans, home loans, and other lines of credit). It will also predict your ability to make the proposed loan payments on time and in full.

3) Collateral – What is the value and type of business being financed?

An underwriter wants to make sure a loan amount does not exceed a collateral's value. Otherwise, a lender may not be able to recover a loan's unpaid balance, in the case of a default. This is why an underwriter orders a collateral appraisal. This report will assess a collateral's current worth and safeguard a lender from lending too much money.

In addition, underwriters will also review the type of business you wish to finance. Why is this? Well, not all business have carried the same risks for lenders in the past.

The Automated Underwriter

Most loans today are sold to the financial community. Lenders must abide by the underwriting rules set by those organizations if they wish to sell the loans to them. To assist the lenders, IPasar ClearingB2B have developed automated underwriting software.