Suppose you are a loan officer at Carbondale Local Bank. Joan Doe listed the following information on her mortgage application:

Use the information below to determine whether or not Joan Doe should be approved for a mortgage from your bank.

The loan is automatically rejected if the applicant’s total score is less than or equal to 120. The loan is automatically approved if the total score is greater than or equal to 190. A score between 120 and 190 (noninclusive) is reviewed by a loan committee for a finaldecision.

Transcribed Image Text:

Characteristic Value $45.000 10% Annual gross income TDS Relations with F Major credit cards Age Residence Length of residence Job stability Credit history Checking account 27 Own/Mortgage 2% years 52 years Missed 2 payments 1 year ago Characteristic Values and Weights $10,000 $25,000 $50,000- <$10.000 $25,000 50,000 $100,000 >$100.000 Characteristic Annual gross 0 >50% -10 10 35%-50% 35 TDS 15%-35% 5%-15%<5% 40 60 None Checking Savings Relations with FI Both account account 0 10 10 Major credit No Between l and 4 20 25 25-60 60 cards or more I0 35 Residence Rent Own with Own mortgage outright 20 Characteristic Characteristic Values and Weights Length < year1-5 of residence Score years years 0 25 Job stability year 1-5 years 5 years Credit No Missed a Met history record payment in last 5 years payments 40