Difference between revisions of "Early Payment Default"
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== Definition == | == Definition == | ||
| − | '''Early Payment Default''' (EPD) is a type of [[Delinquency]] profile and eventual [[Credit Event]] where the borrower (typically in [[Consumer Finance]] context) migrates into a [[Default Definition | defaulted state]] shortly after entering into | + | '''Early Payment Default''' (EPD) is a type of [[Delinquency]] profile and eventual [[Credit Event]] where the borrower (typically in [[Consumer Finance]] context) migrates into a [[Default Definition | defaulted state]] shortly after entering into a credit transaction. |
| − | EPD is an indicator of potential [[Risk Management]] issues such as | + | EPD is an indicator of potential [[Risk Management]] issues such as: |
| − | * Fraudulent documentation | + | * Fraudulent documentation or |
* Poor [[Underwriting Standards]] | * Poor [[Underwriting Standards]] | ||
Latest revision as of 10:39, 30 September 2021
Definition
Early Payment Default (EPD) is a type of Delinquency profile and eventual Credit Event where the borrower (typically in Consumer Finance context) migrates into a defaulted state shortly after entering into a credit transaction.
EPD is an indicator of potential Risk Management issues such as:
- Fraudulent documentation or
- Poor Underwriting Standards
