What is a decision or action taken by the lender regarding a loan called?

Study for the nCino Business Value Exam. Explore flashcards and multiple choice questions, complete with hints and explanations. Prepare for success!

The term that refers to a decision or action taken by the lender regarding a loan is "Credit Action." This encompasses a variety of decisions, such as loan approvals, denials, modifications, and any changes to the terms of existing loans. Credit actions are critical in the loan lifecycle as they directly impact the borrower's financial situation and the lender's risk management.

Understanding "Credit Action" highlights the lender's role in evaluating creditworthiness and making informed decisions based on the borrower's financial profile and the lending criteria of the institution. This term encapsulates the broader range of activities associated with loan management beyond simply reviewing applications or making modifications. It emphasizes the proactive nature of lenders in assessing and responding to borrowers' needs and circumstances throughout the loan process.

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