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Loan Approval:

See attached files.

Review the following five applications. They are all for primary residential, 30-year mortgages, with full documentation. Be sure that before you decide which applications to approve, you consult the Lending Policies Manual. Your goal is to give the bank the greatest possible gain.

Choose the loan(s) to approve and justify.


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Choose the loan(s) to approve and justify

Application A
This loan will be approved. The reason for this is that its FICO Score is 730. According to the lending policies manual, FICO scores of 700 and above should be approved without the need to look at the other criteria or getting the Bank President's approval. The interest rate should be 0.5% above the bank's "prime" rate.

Application B
This application will be approved. The reason is that according to lending policies manual if the score of an applicant is between 600 and 700 then the application should be approved without ...

Solution Summary

This solution gives you strong points concerning Loan Approval.