5C’s of Credit Underwriting Consumer Loans Instructions: eva…
5C’s of Credit Underwriting Consumer Loans Instructions: evaluate the borrower profiles to approve or decline a loan request for buying a home Borrower Profile (1) Underwriting Factor 750 FICO 28% Home Debt Ratio 36% Total Debt Ratio High Net Worth 3 Mo. Cash Emergency Fund in Place Moderate Retirement Savings 20% Down Payment 80% Loan to Value Ratio Accountant 15 Years (H) Nurse 15 Year (W) Satisfactory Economic Conditions 2 Children saving for college Approve or Decline (Underline Your Answer) Borrower Profile (2) Underwriting Factor 600 FICO 45% Home Debt Ratio 55% Total Debt Ratio Low Net Worth No Cash Emergency Fund in Place Low Retirement Savings 5% Down Payment 95% Loan to Value Ratio Accountant 3Years (H) Nurse 2 Year (W) Satisfactory Economic Conditions 1 Child not saving for college Approve or Decline (Underline Your Answer) Borrower Profile (3) Underwriting Factor 700 FICO 32% Home Debt Ratio 40% Total Debt Ratio Moderate Net Worth 2 Mo. Cash Emergency Fund in Place Low Retirement Savings 20% Down Payment 80% Loan to Value Ratio Accountant 10 Years (H) Nurse 8 Years (W) Satisfactory Economic Conditions 3 Children limited college savings Approve or Decline (Underline Your Answer)