Mortgage Banker Question:
What is 'Loan grading'?
Answer:
The classification of loan based on various risks and parameters like repayment risk, borrower's credit history etc. is known as 'loan grading'. This system places loan on one to six categories, based on the stability and risk associated with the loan.
| Previous Question | Next Question |
| What is (APR) Annual Percentage Rate? | What is Cost Of Funds Index (COFI)? |