In this contribution to ADI Adviser, ADI Senior Economist Paul J. Strasberg discusses the need for a dynamic analysis plan in modeling underwriting processes. Paul demonstrates how the dynamic approach is “better aligned with the process used by lenders, results in lower and well-identified high risk cases, and should be well received by regulatory authorities.” In addition, this article highlights the barriers that prevent this dynamic approach and the actions that lenders can take to overcome them.

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