Module
6: Case Study
Recap
of Previous Day
Module
6 Overview
In this module you will be able to apply your skills that you have learned in the previous five modules to the test. You will be able to analyze a case study and indicate whether or not you would approve the loan based upon the information given.
Terminal Performance Objective
Upon completing this module you will be able to do the following
Demonstrate the competencies needed to be a Consumer Lender with Lending Authority.
Case Study
Ryan Fehrenbacher has been working at his current job at as Director of Technology for United Transportation INC (UTI) for 8 months and has a annual salary of $63,500, Ryan’s previous job was a Technology Consultant for KYS Services for 9 years and made an annual income of $56,000 Ryan financed his mortgage from your bank in 2002 for $178,000 he now owes $165.000. His home is valued at $190,000
Ryan is currently driving a Ford Escort and would like to upgrade to a new 2005 Toyota Tundra with a cost of $ 48,000 He currently does not have a auto loan.
You know the following
information
Ryan’s Debt is as follows
|
Item |
Balance |
Payment |
Past History |
|
|
Mortgage your bank |
165,000 |
1050 |
111111111111 |
|
|
Best Buy |
5,000 |
175 |
1212121112121 |
|
|
Famous Barr |
1350 |
50 |
111111111111 |
|
|
Honda |
4000 |
125 |
1112211211311 |
|
|
|
10000 |
250 |
1111111111111 |
|
|
Target |
0 |
0 |
XXXX111XX |
|
|
New Loan Proposed |
48000 |
974.00 |
|
|
Information for training purposes
1= pays as agrees
2= 30 days past due
3=60 days past due
Ryan’s
average checking account balance is $ 2500
Ryan’s
Saving account balance is $ 4500 (he does not want to use this)
Ryan’s
account has been at your bank since he was 18 which was 10 years ago
Ryan has
Mutual funds at different bank
Answer
the following questions
1. What is
Ryan’s Debt to income?
2. What is
the LTV – use NADA
3. Is
Ryan’s credit quality meeting guidelines?
4. Is
there any exceptions?
5. Would you approve the loan? Explain Why or why Not?