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Table 1. Survey Responses for General Underwriting Practices
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1/96 - 9/98 | 10/98 - 12/01 |
| Question | Responses (1996-1998 / 1998-2001) | Number | Percent | Number | Percent |
| How would you characterize the potential risk associated with the institution's current UW practices? | Below Average/Low | 745 | 28.9 | 2,691 | 61.7 |
| Average/Medium | 1,565 | 60.8 | 1,475 | 33.8 |
| Above Average/High | 264 | 10.3 | 196 | 4.5 |
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| How would you characterize the potential credit risk of the institution's overall loan portfolio? | Below Average/Low | 925 | 35.9 | 2,722 | 62.4 |
| Average/Medium | 1,362 | 52.9 | 1,433 | 32.9 |
| Above Average/High | 288 | 11.2 | 207 | 4.7 |
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| To what extent has recent lending been made in amounts that resulted in--or contributed to--concentrations of credit to one borrower or industry? | Never or Infrequently | 2,055 | 79.8 | 3,382 | 77.5 |
| Frequently Enough to Warrant Notice | 339 | 13.2 | 660 | 15.1 |
| Commonly or as Standard Procedure | 181 | 7.0 | 320 | 7.3 |
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| How would you characterize the risk associated with loan administration? | Below Average/Low | 828 | 32.2 | 2,644 | 60.6 |
| Average/Medium | 1,389 | 53.9 | 1,467 | 33.6 |
| Above Average/High | 358 | 13.9 | 251 | 5.8 |
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| To what degree does the institution fail to adjust its loan pricing on different-quality loans to reflect differences in risk? | Never or Infrequently | 1,828 | 71.0 | 3,809 | 87.3 |
| Frequently Enough to Warrant Notice | 611 | 23.7 | 453 | 10.4 |
| Commonly or as Standard Procedure | 136 | 5.3 | 100 | 2.3 |
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| To what extent does the institution fail to require a material principal before renewing term loans? | Never or Infrequently | 1,589 | 61.7 | 3,308 | 75.8 |
| Frequently Enough to Warrant Notice | 842 | 32.7 | 913 | 20.9 |
| Commonly or as Standard Procedure | 144 | 5.6 | 141 | 3.2 |
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| To what extent do the institution's written lending policies differ from actual practices? | Never or Infrequently | 1,863 | 72.3 | 3,297 | 75.6 |
| Frequently Enough to Warrant Notice | 603 | 23.4 | 909 | 20.8 |
| Commonly or as Standard Procedure | 109 | 4.2 | 156 | 3.6 |
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