During an exam, bank A was told that if they have a residential mortgage on the books that has a score of 660 or lower, it will be considered subprime. Do you know if there is any such condition for commercial loans too? If they have proper documentation showing that the have done adequate due diligence and analysis on a commercial loan and it meets all of the bank's underwriting criteria but the borrower has a score of 660 or below, will that create a problem?

I am thinking that this does not apply to commercial loans - am I correct?

Commercial loans are risk rated and graded according to credit strength, repayment capacity, etc. "Subprime" would not really apply.