Early Payment Default
From Open Risk Manual
Revision as of 14:44, 27 October 2019 by Wiki admin (talk | contribs) (Created page with "== Definition == '''Early Payment Default''' (EPD) is a type of Delinquency profile and eventual Credit Event where the borrower (typically in Consumer Finance con...")
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 the transaction.
EPD is an indicator of potential Risk Management issues such as
- Fraudulent documentation
- Poor Underwriting Standards
