What action may a lender take to determine a borrower's character?

A lender may call an employer to verify employment to gain insight into a borrower's character. This action allows the lender to confirm not only the borrower's job status but also their reliability and consistency in employment. By understanding the context of the borrower's work history, the lender can assess qualities such as stability, responsibility, and a potential track record of meeting obligations—all of which are important aspects of a borrower’s character.

In this context, while checking credit reports can provide valuable information about a borrower’s creditworthiness and financial habits, it doesn't directly reflect character traits such as reliability or work ethic. Reviewing income statements offers insight into financial capacity but doesn’t address character specifics. Examining asset statements might give a picture of a borrower’s wealth but similarly lacks the personal insights regarding behavior and reliability that could be gleaned from a conversation with an employer.