"It's way too inefficient to underwrite
that type of business on a manual basis.
"In the past, companies would underwrite
coverage in the Directors & Officers market after reviewing some financial statements and that was it," says Ellen Thrower.
The Board's approval of the proposal to underwrite
and deal in all types of bank-ineligible securities is conditioned on a determination by the Board that San Paolo-IMI and Mabon have established policies and procedures to ensure compliance with the Operating Standards and the other requirements of this order, the Section 20 Orders, and the Modification Orders, including computer, audit, and accounting systems, internal risk management controls, and the necessary operation and managerial infrastructure for underwriting and dealing in all types of debt and equity securities.
Agents can underwrite
the risks before they submit the policy, which benefits both agents and customers in different ways.
Some lenders choose to underwrite
mortgages very strictly and thus limit their exposure to losses.
"Before clients get too deep into the quoting process, we're able to underwrite
the location of the home relative to known geo-hazard areas, and are thus able to efficiently geo-underwrite the risk in real time," said Rios.
As just noted, banking organizations underwrite
and deal in securities abroad, and since 1987, banking organizations with the necessary infrastructure may apply for authority to engage in limited underwriting and dealing of securities through special bank holding company subsidiaries under a Federal Reserve Board interpretation of section 20 of the Glass-Steagall Act.
* Underwriting is Poor: Lenders try to underwrite
loans on prices and terms that deliver a profit upon sale.