Which of the following statements is NOT true about credit administration?

Credit administration is important for identifying problems in a borrowers account and reducing the risk of credit default.

Appropriate credit administration and documentation practices allow for better information for more informed decision regarding actions taken towards a borrowers account.

Credit administration is about documentation, ongoing monitoring, and possibly re-classifying a borrower before a loan has been made.

Proper credit documentation practices allow for more flexibility to respond to changes in a borrowers circumstances.