Review the following case and answer the following

1. Calculate Bob and Sandy’s TDSR and GDSR.
2. Your assessment of Bob and Sandy’s credit history.
3. Your opinion about Bob and Sandy’s character and the market conditions.
4. Calculate Bob and Sandy’s combined actual capital net worth.
5. Should we approve the loan (and why or why not?)
6. List all the items we could take collateral, in order of preference, and make a recommendation as to which one/ones we should take if we approve the loan.
    
    
    
    

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Review the following case and answer the following (15 points) 1. Calculate Bob and Sandy's TDSR and GDSR. 2. Your assessment of Bob and Sandy's credit history. 3. Your opinion about Bob and Sandy's character and the market conditions. 4. Calculate Bob and Sandy's combined actual capital net worth. 5. Should we approve the loan (and why or why not?) 6. List all the items we could take a collateral, in order of preference, and make a recommendation as to which one/ones we should take if we approve the loan. I Bob and Sandy have been married for 15 years. They have two children under the age of 12. Bob is 45 years old and works as an executive with a large privately-owned pet food manufacturer located in Mississauga. Bob has been employed at the company since his graduation from Centennial College's Food and Beverage program when he was 22 years old. (23 years) Sandy is 40 years old and has been working as a medical secretary in a large hospital in Toronto for 18 years. She also teaches at Centennial College part time. They have owned their current home for 10 years and have no plans to relocate. They recently spent the week-end in Collingwood, Ontario and saw a vacation property that they felt would be great for family week-ends away all year round. It is a three-bedroom detached cottage valued at $500,000. They put in an offer to purchase it and will be putting a $75,000 down payment. The property sale closed in 90 days. Property taxes are $1,800 for the year and heating is $50/month. They have dropped into Everyday Bank, where they have been dealing for 20 years, and made an application for a loan for $425,000. Review the following case and answer the following (15 points) 1. Calculate Bob and Sandy's TDSR and GDSR. 2. Your assessment of Bob and Sandy's credit history. 3. Your opinion about Bob and Sandy's character and the market conditions. 4. Calculate Bob and Sandy's combined actual capital net worth. 5. Should we approve the loan (and why or why not?) 6. List all the items we could take a collateral, in order of preference, and make a recommendation as to which one/ones we should take if we approve the loan. I Bob and Sandy have been married for 15 years. They have two children under the age of 12. Bob is 45 years old and works as an executive with a large privately-owned pet food manufacturer located in Mississauga. Bob has been employed at the company since his graduation from Centennial College's Food and Beverage program when he was 22 years old. (23 years) Sandy is 40 years old and has been working as a medical secretary in a large hospital in Toronto for 18 years. She also teaches at Centennial College part time. They have owned their current home for 10 years and have no plans to relocate. They recently spent the week-end in Collingwood, Ontario and saw a vacation property that they felt would be great for family week-ends away all year round. It is a three-bedroom detached cottage valued at $500,000. They put in an offer to purchase it and will be putting a $75,000 down payment. The property sale closed in 90 days. Property taxes are $1,800 for the year and heating is $50/month. They have dropped into Everyday Bank, where they have been dealing for 20 years, and made an application for a loan for $425,000.

Answer rating: 100% (QA)

To calculate Bob and Sandys Total Debt Service Ratio TDSR and Gross Debt Service Ratio GDSR we need to gather information about their income and debts Bobs income 250000year gross Sandys income 55000y... View the full answer