John and Jane Doe are both 40 years old with two children, ages 12 and 10. John
Question:
John and Jane Doe are both 40 years old with two children, ages 12 and 10. John is an assistant principal making $80,000 per year. He has been in the same school district for over 10 years, working in different positions. Jane works part-time, making around $14,000 per year. The couple has about $25,000 in equity on their current home and $30,000 in savings. They came to your office seeking a pre-approval for a new mortgage.
Needed an initial 10- to 12-slide presentation for your credit committee describing the couple's creditworthiness and your recommendation for pre-approval/denial. If you do pre-approve, include the maximum amount you would recommend.
| 720+ | 690-720 | 650-690 | 600-650 | Below 600 |
30 Year Loan | 4% | +.25% | +1% | +1% | +2% |
15 Year Loan | 3% | +.15% | +.75% | +.75% | +1% |
5/1 ARM | 3.25% | same | +.5% | N/A | N/A |
1/1 ARM | 2.75% | same | +.5% | N/A | N/A |
Additionally, create 3-5 slides outlining a new credit card you would like to offer to John and Jane Doe. Include your rationale and the limit you are suggesting.
| Creditor | Type | Date Opened | Date Closed | Beg Balance/Limit | Current Balance | Payment | 30+ Days Late | 60+ Days Late | 90+ Days Late | |
| Open | ||||||||||
| Bank of America | Mortgage | 6/1/2009 | 200,000 | 190,000 | 1,600 | 5 | 3 | 1 | ||
| VyStar Credit Union | Auto | 5/1/2014 | 35,000 | 21,000 | 750 | 8 | 4 | 2 | ||
| MBNA | Credit Card | 5/21/1999 | 10,000 | 9,500 | 10 | 10 | 5 | |||
| Sallie Mae | Student Loans | 8/31/1985 | 40,250 | 11,000 | 300 | 0 | 0 | 0 | ||
| Navy Federal Credit | Auto | 3/25/2012 | 19,000 | 1,500 | 350 | 5 | 4 | 2 | ||
| HSBC | Credit Card | 5/1/2015 | 5,000 | 5,000 | 100 | 0 | 0 | 0 | ||
| Closed | ||||||||||
| VyStar | Auto | 10/1/1988 | 10/1/1993 | 14,000 | 0 | 175 | 4 | 2 | 1 | |
| VyStar | Auto | 4/1/1996 | 4/1/1999 | 18,000 | 0 | 245 | 3 | 2 | 1 | |
| VyStar | Auto | 5/21/1999 | 5/21/2004 | 22,000 | 0 | 450 | 6 | 3 | 1 | |
| VyStar | Auto | 10/1/2006 | 10/1/2010 | 30,000 | 0 | 600 | 7 | 5 | 3 | |
| Chase | Credit Card | 6/1/1989 | 10/1/2005 | 1,000 | 0 | 25 | 12 | 6 | 3 | |
| Macy's | Credit Card | 7/1/1995 | 10/1/2005 | 500 | 0 | 25 | 10 | 2 | 1 | |
| Target | Credit Card | 8/1/2001 | 10/1/2005 | 500 | 0 | 25 | 14 | 1 | 1 | |
| Best Buy | Credit Card | 9/1/2002 | 10/1/2005 | 2,500 | 0 | 25 | 9 | 6 | 3 | |
| Bank of America | Mortgage | 4/1/1992 | 5/31/2009 | 100,000 | 0 | 800 | 3 | 2 | 1 | |
| Credit Scores | ||||||||||
| Dan | 600 | |||||||||
| Roseanne | 610 |
Expert Answer:
Slide 1 Introduction Title Creditworthiness Assessment for John and Jane Doe Briefly introduce the purpose of the presentation Slide 2 Demographic Inf... View the full answer
