Criterion A4: Consistency of Underwriting (Transaction Level)
Effective from Dec 28 2022 - Dec 31 2022
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| 18.114 | The sponsor should ensure that sellers (in their capacity of original lenders) intransactions with the conduit demonstrate to it that: | |
| (1) | Any credit claims or receivables being transferred to or through a transaction held by the conduit have been originated in the ordinary course of the seller’s business subject to materially non-deteriorating underwriting standards. Those underwriting standards should also not be less stringent than those applied to credit claims and receivables retained on the balance sheet of theseller and not financed by the conduit; and | |
| (2) | The obligors have been assessed as having the ability and volition to make timely payments on obligations. | |
| 18.115 | The sponsor should also ensure that sellers disclose to it the timing and purpose of material changes to underwriting standards. | |