How to Cope as Banks Adjust Their Underwriting

We can expect banks to be much more selective with their new originations

By Les Shaver | June 02, 2020 at 06:54 AM

Without a doubt banks have become more conservative in their underwriting. Yet, there are still ways that borrowers can tap this capital source—even as numerous properties are returned to creditors. But don’t underestimate the uphill climb facing borrowers, says Omar Eltorai, market analyst at Reonomy.

“Banks and other portfolio lenders will likely stay focused on risk mitigation and workouts, while new origination will use strict underwriting criteria and will be targeted at the lender’s ‘sweet spot’ or core area of focus,” he says.

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