underwriting
n. uncountablen. the process of checking a person or company to decide if they should receive insurance or a loan. It involves looking at risks to see if a deal is safe for a bank or insurance company.
n. the process by which a financial institution assesses the risk of a potential client before deciding to provide insurance, credit, or a loan. Often involves determining the appropriate premium or interest rate based on the level of risk identified.
The bank is finishing the underwriting for my new house loan.
Strict underwriting standards help insurance companies remain profitable by ensuring they do not take on too many high-risk clients.
The collapse of the housing market was partly attributed to a significant decline in underwriting quality, as lenders approved mortgages for borrowers with insufficient credit histories.
Primarily used as an uncountable noun to describe the professional activity or department; can also function as the present participle of the verb 'underwrite'.