A 30 year mortgages with full documentation are from primary residential. The loan officer has to consult
Question:
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 ?
Expert Answer:
Application A Abby Davis Loan Amount 210000 FICO Score 730 Late Payment Last Year Zero Defaulted Loa... View the full answer
