FDM.1:4.3 - Relate descriptions and resources to the position

Identify what each source describes, the time it concerns and any limitation affecting reliance. A contract description, a servicing record and a customer’s statement can refer to the same loan while differing in date, purpose or evidential support.

Distinguish the position from resources actually available. A borrower can owe repayment while proceeds have already been spent. A lender can have a funded right to payment while the borrower cannot currently pay. A displayed balance can be evidence about these facts, but its interpretation still needs the relevant account and availability conditions.

Retain a prospective position as prospective. A score or offer can inform a decision without establishing an agreement. Conversely, applicable terms can establish duties at valid formation before disbursement. Examine the actual conditions rather than imposing one universal sequence.