Which statement about credit administration is NOT true?

The statement that credit administration occurs only after a loan has been made is not true. Credit administration is an ongoing process that begins before a loan is even approved and continues throughout the life of the loan. It encompasses a range of activities, including the initial underwriting process, where creditworthiness and risk are assessed based on the borrower's financial history and current situation. Once a loan is issued, credit administration continues with ongoing monitoring of the borrower's financial health, ensuring compliance with the loan terms, and making necessary adjustments based on changes in circumstances. This proactive approach is crucial for financial institutions to manage risks effectively and maintain a healthy loan portfolio.

In contrast, the other statements reflect accurate aspects of credit administration. It does involve comprehensive documentation practices, continuous monitoring of borrower accounts to identify potential problems early, and can potentially lead to re-classification if a borrower's risk profile changes. Proper documentation indeed enhances decision-making by providing clear, organized information that helps in evaluating borrower performance and any adjustments needed.