RALEIGH, N.C.– Just over a third of respondents from banks and credit unions to a new poll believe they are currently pricing loans correctly, according to a survey released by Sageworks.
Sageworks, which provides loan portfolio and risk management solutions, said the poll of 317 people asked how they feel about their loan pricing process. Twenty-three percent said they are underpricing loans, and 6% said they are overpricing loans. Another 37% of respondents aren’t sure or aren’t measuring their loan pricing process. It should be noted that the survey was taken during a webinar hosted by Sageworks, which indicates respondents were inclined toward reviewing their loan pricing metrics.
“It is a problem when 65% are not comfortable with their current pricing methodology,” says Sageworks Senior Risk Management Consultant Robert Ashbaugh in a statement. “Without a clear pricing strategy, loans may be overpriced or underpriced resulting in profitability issues and incorrect pricing and identification of the risk in their loans.”