Borrower problems are surfacing later, at closing, JD Power finds

Delayed borrower issues emerging at closing heighten risk exposure for lenders and credit investors, complicating credit assessments and deal execution timelines. For middle-market credit professionals, this trend underscores the need for enhanced due diligence and contingency planning to mitigate last-minute disruptions that can impact loan performance and recovery prospects. Understanding these evolving borrower dynamics is critical to pricing risk accurately and structuring deals that withstand late-stage borrower challenges.