re: How To Improve Credit Risk Modeling For Better Credit Quality
The "annual reviews" and "trend analysis" seem to be the parts of a credit analysis process that are most lacking. There is a massive focus on credit worthiness at the beginning of the relationship, but I'm not sure how much ongoing analysis happens after a year or two. Granted, banks did a large sweeping review of existing mortgages 2-3 years after the credit crisis, but I doubt they have gone back again to do the same analysis. Am i wrong?