Loan Application Answer Sheet – File Number ___35001________
Customer number and
Name
Ferrin, Mark
Ferrin, Marry
age
Other
bank
credit
score
Student Bank
Credit Ranking
None
660
prime customer
standard interest rate
55
45
Deposit amount and
% of purchase price
Loan amount
Reason for loan
$350,000
sell old home and buy new home
valued at $1,000,000
$650000
65%
Loan term
Loan rate
% pa
Monthl
y
repaym
ent
4%
$5475.8
1
$1312.5
Dividend & rental i
ncome
Total
Income
6 years
Gross Wage Income
$97,140
Monthly remaining loan payments
and rental obligations
40% monthly debt service amount
$99,240
$2100
$3308
House Expenditure M HEM‐ borrowing li
easure
mit
Total
amount
of all
total repayments of loans and rent
Loans
obligations
$43,500
MODERATE
$3366.083333
Loan fits within guidelines Reason why or
why not
reject loan application
 Loan amount with $350,000 is higher than moderate
borrowing limit with $335,500 this does not fit by
student bank policy.
$41000
0
$1712.5
Recommendation/advice to client
We recommend customers to borrow as little as possible.
1
Appendix1(deposit amount and % of purchase price)
Deposit amount=purchase price-loan amount
Deposit amount =1000000-350000=650000
%of purchase price=deposit amount/purchase price=650000/1000000=65%
Appendix2(student bank rate and Monthly repayment calculation)
Term=6 Y*12M=72
Discount rate=4%/12=0.33%
Monthly payment=$5475.81
Appendix3(monthly remaining loan payments and rental obligation)
Home loan balance=$400 per month
credit card limit $36500=$36500*2.25%=$912.5
total amont=$912.5+$400=$1312.5
appendix 4(monthly debt service amount)
gross wage income =$97114
dividend income=$2100
total amount=$99214
%monthly debt service amount=total amount/12*40%=$3308
appendix 5 HEM‐
borrowing limit
Tax payable= $3572*2+($55040-$37000+42100-37000+2100) *0.325= $15347
HEM-borrowing limit = ($99,240-$15347-$43,500)/12=$3366.083333
2
Loan Application Answer Sheet – File Number ______35002_____
Customer number and
Name
Fukushima, He
Fukushima, Tiffaney
Loan amount
Other
bank
credit
score
age
52
57
None
Student Bank
Credit Ranking
610
prime customer
standard interest rate
Deposit amount and
% of purchase price
Reason for loan
buy vintage 1952 Timber boat
valued at $500,000
80%
$100000
Loan rate
% pa
Monthl
y
repaym Monthly remaining loan
ent
payments and rental obligations
5 YEARS
11.75%
$2211.
83
Gross Wage Income
Dividend & rental i
ncome
Total
35% monthly debt service
Income amount
Loan term
$111840
0
House Expenditure M
easure
HEM‐ borrowing li
mit
Lavish
$2839.833333
58,320
Loan fits within guidelines Reason why or why
not
reject loan application
Non‐Desirable
$640
$11184
0
$3262
Total
amoun
t of all
total repayments of loans and re
Loans
nt obligations
$15000
0
$2851.83
Recommendation/advice to client
Loans
We recommend the customer to buy a new boat.
3
5.Loans for used
ten years old .
vehicles/boats
over
Appendix1(deposit amount and % of purchase price)
Deposit amount=purchase price-loan amount
Costumer 2
Deposit amount =500000-100000=400000
%of purchase price=deposit amount/purchase price=400000/5000000=80%
Appendix 2(student bank rate and Monthly repayment calculation)
For customer 2:
Term=5Y*12M=60
Discount rate=11.75%/12
Monthly payment=$2211.83
Appendix 3(monthly remaining loan payments and rental obligation)
Home loan balance=$640 per month
appendix 4(monthly debt service amount)
gross wage income =$111840
dividend income=$0
total amount=$111840
%monthly debt service amount=total amount/12*35%=$3262
appendix 5 HEM‐
borrowing limit
Tax payable= $3572*2+($48950-$37000+62890-37000) *0.325= $19442
HEM-borrowing limit = ($111840-$19442-$58320)/12=$2839.833333
4
Loan Application Answer Sheet – File Number ____35003_______
Customer number and
Name
Other
bank
credit
score
age
Goldsmith, Gee
None
Student Bank
Credit Ranking
330
28
increase interest rate
Loan amount
Reason for loan
Deposit amount and
% of purchase price
$35,000
buy used car: 2013 RANGE ROVER
EVOQUE $42,000 selling old car
16.7%
Loan term
Loan rate
% pa
Monthly
Monthly remaining loan p
repayment obligations
5 YEAR
9.5%
$735.07
Gross Wage Income
Total
Dividend & rental income Income
$66570
0
$1728.5
35% monthly debt service
House Expenditure Measure HEM‐ borrowing limit
$66570
$1941.63
Total
amount of
all Loans
total repayments of loans
Basic
$32400
$35000
$1748.979167
Loan fits within guidelines Reason why or why not
$2463.57
Recommendation/advice to client
Appendix 1(deposit amount and % of purchase price)
Deposit amount=purchase price-loan amount
5
Costumer 3
Deposit amount =42,000-$35,000=7000
%of purchase price=deposit amount/purchase price=7000/42000=16.7%
Appendix 2(student bank rate and Monthly repayment calculation)
For customer 3:
Term=5Y*12M=60
Discount rate=9.5%/12
Monthly payment=$$735.07
Appendix 3(monthly remaining loan payments and rental obligation)
Rent accommodation =$1670 per month
AMEX credit card=7,000*0.0225=157.5
total amont=$1670+$157.5=$1827.5
appendix 4(monthly debt service amount)
gross wage income =$66570
dividend income=$0
total amount=$66570
%monthly debt service amount=total amount/12*35%=$1941.63
appendix 5 HEM‐
borrowing limit
Tax payable= $3572+($66570-$37000) *0.325= $13182.25
HEM-borrowing limit = ($66570-$13182.25-$32400)/12=$$1748.979167
Loan Application Answer Sheet – File Number ______35004_____
6
Customer number
and
Name
Halfhide, Mic
Loan amount
Other bank
credit
Student Bank
score
Credit Ranking
-100
Poor
None
reject loan application
age
70
Deposit amount and
% of purchase price
Reason for loan
0
$12,500 consolidate debts into one loan
Loan term
Loan rate
% pa
Monthly remaining loan
Monthly
payments and rental
repayment obligations
2
12%
$588.42
Gross Wage
Income
Total
Dividend & rental income Income
$40,000
House Expenditur
e Measure
$40,000
0
Total
amount of
all Loans
HEM‐ borrowing limit
Basic
$32400
$254.4166667
Loan fits within guidelines Reason why or why
not
reject loan application
$12,500
$1872.5
35% monthly debt service
amount
$1166.67
total repayments of loans and
rent obligations
$2460.92
Recommendation/advice to client
Credit ranking is a reject loan customer. The loan does not fit
within guidelines mainly because the customer scored below 300
in credit rating which indicates that Student Bank should reject the
loan application.
Non‐
Desirable Loans , Loans
ed over 70 years.
to
customers
ag
To improve the credit score so that the customer could be
granted a loan,the customer will have enough credit score
to become a sub-prime customer
7
Appendix 1(student bank rate and Monthly repayment calculation)
For customer 3:
Term=2Y*12M=24
Discount rate=12%/12
Monthly payment=$$588.42
Appendix 2(monthly remaining loan payments and rental obligation)
Rent =$950 per month
AMEX credit card=13,000*0.0225=292.5
ANZ Master card=8000*0.0225=180
Pay day loan=450
total amont=$292.5+$180+$450=$1827.5
appendix 3(monthly debt service amount)
gross wage income =$$40,000
dividend income=$0
total amount=$$40,000
%monthly debt service amount=total amount/12*35%=$1166.67
appendix 5 HEM‐
borrowing limit
Tax payable= $3572+($40,000-$37000) *0.325= $4547
HEM-borrowing limit = ($40,000-$4547-$$32400)/12=$$254.4166667
8
Loan Application Answer Sheet – File Number _____35005______
Customer number and
Name
Hatsatouris, Ron
Other bank credit
score
age
35
Loan amount
None
Dep
%o
Reason for loan
23.
$650,000 buy investment unit in city- $850,000 and rent for 550 per week
Loan term
20 yrs
Gross Wage Income
Loan rate
% pa
Monthly
repayment
6%
4656.8
Dividend & rental income
Total Income
265,000
Mo
obl
40%
$274360
$9360
Total amount of
all Loans
House Expenditure Measure HEM‐ borrowing limit
32,400
Basic
Stu
Cre
$12116.75
Loan fits within guidelines Reason why or why not
Accept loan application
$650000
tot
$91
Recommendation/advic
 Loan amount with $650000 is lower than moderate borrowing limit with $1,144,000, this is fit
by student bank policy.
 Credit ranking is a subprime customer. This does fit within the
guideline after the increased interest rate.
we recommend the customer no
9
the customer applied to fit the maximum loan for investment home
loans. Besides, the customer gains enough score in credit rating to be
granted a loan.
Appendix 1(deposit amount and % of purchase price)
Deposit amount=purchase price-loan amount
Costumer 5
Deposit amount =850,000-$650,000=200000
%of purchase price=deposit amount/purchase price=200000/850,000=23.5%
Appendix 2(student bank rate and Monthly repayment calculation)
For customer 5:
Term=20Y*12M=240
Discount rate=6%/12
Monthly payment=$4656.8
Appendix 3(monthly remaining loan payments and rental obligation)
Rent accommodation =$4500 per month
AMEX credit card=23,000*0.0225=195.75
total amont=$4500+$195.75=$4695.75
appendix 4(monthly debt service amount)
gross wage income =$265,000
dividend income=$9360
total amount=$274360
%monthly debt service amount=total amount/12*40%=$9145.333333
appendix 5 HEM‐
borrowing limit
Tax payable= $54097+($265,000-37000+9360) *0.45= $96559
HEM-borrowing limit = ($274360-$96559-$32,400)/12=$12116.75
House Expenditure Measure
10
Gross
Living
Customer income
Factors
Decision expense
1
$99,214 married couple, NO DEPENDENT CHILD
moderate $43,500
2
111,840 married couple, 3 DEPENDENT CHILD
Lavish
$58,320
3
66,570 single，NO DEPENDENT CHILD
Basic
32,400
4
40,000 single，NO DEPENDENT CHILD
Basic
32,400
5
274360 single，NO DEPENDENT CHILD
Basic
32,400
11