Early Payment Default
From Open Risk Manual
Revision as of 10:39, 30 September 2021 by Wiki admin (talk | contribs)
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