D&C, we were doing a Q & A with a consumer loan department, and asked the question how long would you wait until someone in bankruptcy would be given a loan. We started with the newest underwriter and worked to the manager.
The newest said 7 years. The time grew progressively less with experience, until it was the manager's turn. He mentioned there were three elements involved.
o Was the bankruptcy the fault of the customer, or were they a victim? (Was it their mismanagement of funds, or an unforeseen emergency such as medical with no insurance.)
o Did the bank lose any money in the bankruptcy?
o Did they re-establish any credit?
If all three criteria were OK, he said 1 year was enough for him.
Also, because of the differences in experience and underwriting, we came up with a 2nd review worksheet to endure that all parties would receive the same consideration. The bankrupt person whose application went to the newest underwriter would have the same consideration as that going to the manager. Basically, underwriters have loan approval authority and loan denial recommendation authority.
Integrity. With it, nothing else matters. Without it, nothing else matters.