In fact, as unsecured loans are only credit - based, the only thing bank requires is a filled out application with authorization to access credit history of the borrower. (badcreditloanservices.com)
These loans are purchased at purchase prices that are discounted (often substantially so) to the contractual loan balance to reflect the impaired credit history of the borrower, the loan - to - value (or LTV) of the loan and the coupon. (mfafinancial.com)
Thus, they can not rely as much on the value of the housing collateral in securing their mortgage loans, and consequently now put more weight on the credit histories of the borrowers. (newyorkfed.org)