Exception

Exception is a written approval that allows a file to close despite missing or out-of-policy criteria — credit score two points below floor, reserves slightly thin, experience requirement waived for a strong sponsor. Exceptions are not entitlements; they require a documented business case, senior underwriter or credit committee sign-off, and often come with compensating-factor offsets (lower LTV, higher rate, additional reserves). Frequency of exception requests on a file is itself an underwriting signal.