For PeerStreet, underwriting is the process by which we determine if a loan meets our stringent underwriting standards that help to ensure that parameters of every loan are supported by documentation, and that such loan fits our credit guidelines. Our underwriting standards have been developed using commercial and residential lending industry best practices, as well as proprietary data that we’ve collected while sourcing a significant portfolio of lenders and business purpose loans. We typically update our underwriting standards on a quarterly basis to ensure our parameters are consistent with market conditions.
Our Underwriting team follows the same due diligence process for every loan, providing consistent guidance on how the loan conforms to our credit standards. They also identify any potential risks with the property, borrower, or loan documents. Our underwriters assess the merits of each loan, the property, and the borrower’s ability to repay the loan based on their credit history and other pertinent background information. We also check to make sure every property is insured and is free of title encumbrances.