Suppose you are a loan officer at Carbondale Local Bank. Joan Doe listed the fol
ID: 2761527 • Letter: S
Question
Suppose you are a loan officer at Carbondale Local Bank. Joan Doe listed the following information on her mortgage application:
The loan is automatically rejected if the applicant’s total score is less than or equal to 120. The loan is automatically approved if the total score is greater than or equal to 190. A score between 120 and 190 (noninclusive) is reviewed by a loan committee for a final decision.
Explanation / Answer
Following are the credit scores assigned to Joan as per the given table:
Characteristics
Amount
Score
Annual Gross Income
24000
10
TDS
20%
20
Relation with FI
Both
20
Major credit cards
3
20
Age
24
5
Residence
Own/Mortgage
20
length of residence
7.5
40
Job stability
9.5
50
Credit history
missed 3 payments
-15
Total
170
Hence, Joan’s credit score would be 170.
Characteristics
Amount
Score
Annual Gross Income
24000
10
TDS
20%
20
Relation with FI
Both
20
Major credit cards
3
20
Age
24
5
Residence
Own/Mortgage
20
length of residence
7.5
40
Job stability
9.5
50
Credit history
missed 3 payments
-15
Total
170