Risks in Underwriting Practices Stabilized But Caution Still Necessary, FDIC Reports
Source: FDIC
Examiners say that the overall potential risk associated with current underwriting practices at FDIC-supervised banks decreased slightly. However, examiners also report that risky underwriting practices for agricultural, construction and commercial real estate lending remain causes for concern, according to the agency's latest Report on Underwriting Practices, which covers the six months ending March 31, 2000.
"These results signal yellow-caution," FDIC Chairman Donna Tanoue said. "While we are pleased that some underwriting practices appear to have stabilized, we are urging bankers to take a closer look at financial statements and sources of repayment."
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