Lenders always want to maintain a good level of liquidity across their portfolio. This means that once loans are funded, they will sell these portfolios to investors and the secondary market to bring back the capital in their business. This is only possible when investors do not see any risk in the portfolio. If the portfolio has many bad loans, then the lenders get stuck with these loans. To reduce the risk of having bad loans in their portfolio, a lot of lenders resort to a specialized pre-funding Quality check. This is to......

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