From c9b0453006c01c532fe3052e7e0ad428bed8af5b Mon Sep 17 00:00:00 2001 From: AdarshChugani Date: Wed, 8 Jan 2025 23:16:13 +0800 Subject: [PATCH] Update definitions for credit_process enums with reg references --- documentation/properties/credit_process.md | 16 ++++++++++------ 1 file changed, 10 insertions(+), 6 deletions(-) diff --git a/documentation/properties/credit_process.md b/documentation/properties/credit_process.md index d65b8c94..d3ae6b77 100644 --- a/documentation/properties/credit_process.md +++ b/documentation/properties/credit_process.md @@ -12,15 +12,19 @@ The credit_process is used to identify how a loan is credit assessed during the ### graded -[**Loan Grading**][loan-grading] is a classification system that involves assigning a quality score to a loan based on a borrower's credit history, quality of the collateral, and the likelihood of repayment of the principal and interest. A score can also be applied to a portfolio of loans. Loan grading is part of a lending institution's loan review or credit risk system and is usually an aspect of the credit underwriting and approval processes. - -[loan-grading]: https://www.investopedia.com/terms/l/loan-grading.asp +[**Loan Grading**][loan-grading] is a classification system that involves assigning a quality score to a loan based on a borrower's credit history, quality of the collateral, and the likelihood of repayment of the principal and interest. A score can also be applied to a portfolio of loans. Loan grading is part of a lending institution's loan review or credit risk system and is usually an aspect of the credit underwriting and approval processes. (based on the [FED Reporting Instructions for Capital Assesments][fed-graded-rated]). ### rated -Corporate loans may be rated using the internal risk rating system of the bank. +Corporate loans may be rated using the internal risk rating system of the bank. (based on the [FED Reporting Instructions for Capital Assesments][fed-graded-rated]). ### scored -Loans where the credit score of the borrower is used in the underwriting process to assess credit risk. +Loans where the credit score of the borrower is used in the underwriting process to assess credit risk. (based on the [FED Reporting Instructions for Capital Assesments][fed-scored-delinquency]). ### delinquency_managed -Loans where the delinquency history of the borrower is used in the underwriting process to assess credit risk. \ No newline at end of file +Loans where the delinquency history of the borrower is used in the underwriting process to assess credit risk. (based on the [FED Reporting Instructions for Capital Assesments][fed-scored-delinquency]). + +[loan-grading]: https://www.investopedia.com/terms/l/loan-grading.asp + +[fed-graded-rated]: https://www.federalreserve.gov/apps/reportingforms/Download/DownloadAttachment?guid=83c6e71a-86c2-40b6-a9a5-16e15ca7d2d8#page=163 + +[fed-scored-delinquency]: https://www.federalreserve.gov/apps/reportingforms/Download/DownloadAttachment?guid=83c6e71a-86c2-40b6-a9a5-16e15ca7d2d8#page=41 \ No newline at end of file