To alleviate the issues with non-bank supplied SDL services and products, a accountable SDL would align with all the after conditions and terms, with a fundamental framework in mind—to offer short-term liquidity in a low-cost and transparent way.

Underwriting and affordability. Monthly obligations must not pose affordability challenges for the debtor, therefore the terms and costs of borrowing is clear and well grasped. Further, an objective must be to restrict cases of the debtor fundamentally spending more than twice as much initial quantity lent. The mortgage should supply a return that is reasonable the lending company rather than expose the financial institution to extortionate chance of debtor standard. Continue reading →