A 30 year mortgages with full documentation are from primary residential. The loan officer has to consult the lending policies manual before deciding which applications to approve.The goal is to give the bank the greatest possible gain.

Lending Policies Manual

As the bank manager, it is your job to determine which loan applications are approved and which are rejected. This lending policies manual will provide you the historical data to help you make your decisions, as well as provide any bank policies with which you must comply.

The primary guide to your decision must be the FICO score of the applicant. In some cases other criteria will also be used for you to make a decision.

There are 5 loan applications

Application A Abby Davis 

Loan amount $210,000

FICO Score 730

Late payment in the last year: Zero 

Defaulted loans in the last five years Zero

Application B Brandon Chetkey 

Loan amount $300,000

FICO Score 650

Late payment in the last year: Zero 

Defaulted loans in the last five years Zero

Application C Christine McDougal

Loan amount $250,000

FICO Score 540

Late payment in the last year: One

Defaulted loans in the last five years Zero

Application D Daniel Blankenship

Loan amount $200,000

FICO Score 680

Late payment in the last year: One

Defaulted loans in the last five years Zero

Application E Eric Morgan

Loan amount $150,000

FICO Score 490

Late payment in the last year: Two

Defaulted loans in the last five years Zero

It needs Mr highboss approval 

This simulation will allow you to assume the role of a loan officer and make lending decisions about mortgage applications to the bank. 

Once you review all the documentation and the loan applications, you will make your recommendations. You will also have a chance to review how your loans performed over the course of the next six months. Based on this analysis, you will answer a few questions and complete your analysis.

Once done, you will need to submit the results of your analysis to the Dropbox as an assignment. Of course, there can be more than one correct decision. Please present your justification of the decisions you are presenting.

You are a loan office and make lending decisions about the mortgage applications to the bankor below problem ?