Relative to residential loans, the underwriting process for commercial loans is more complicated. The commercial loan underwriting process focuses first on which of the following?

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The income producing potential of the collateral property is the primary focus of commercial loan underwriting. This is because the lender's primary concern is the ability of the business to generate sufficient revenue to repay the loan. The borrower's credit quality, wages, and personal assets may also be considered, but they are secondary to the collateral property's income potential.

Relative to Residential Loans, the Underwriting Process for Commercial Loans