It can mean a second look by an experienced underwriter of both approved and denied loans. The purpose would be to ensure consistancy in decisions. (Sometimes experienced underwriters are more liberal than newer underwriters, and a marginal loan could either be approved or denied, based on underwriter experience and authority.)
Some banks considered a 2nd review to mean a 2nd person look at denials to make sure that they did not meet the credit criteria. Decatur Federal changed that definition real quick, when the examiners found that (minority) loans were being denied for appropriate reasons, however some non-minority borrowers with the same credit criteria were approved. A review of both approved and denied loans (by the same underwriter / using the same guidelines) would catch the differences.
_________________________
Integrity. With it, nothing else matters. Without it, nothing else matters.
Previous Thread
Index