= Suppose you are a loan officer at Carbondale Local Bank. Joan Doe listed the following information on her mortgage application. Characteristic Value Annual gross income TDS Relations with FI Major credit cards Age Residence Length of residence Job stability Credit history $45,000 10% Checking account 5 27 Own/mortgage 2½ years 5½ years Missed 2 payments 1 year ago Use the information below to determine whether or not Joan Doe should be approved for a mortgage from your bank.

a. b. 36. Characteristic Characteristic Values and Weights Annual gross income Score <$10,000 0 $10,000–$25,000 10 $25,000–$50,000 20 $50,000–$100,000 35 >$100,000 60 TDS Score >50% −10 35%–50% 0 15%–35% 20 5%–15% 40 <5% 60 Relations with FI Score None 0 Checking account 10 Savings account 10 Both 20 Major credit cards Score None 0 Between 1 and 4 20 5 or more 10 Age Score <25 5 25–60 25 >60 35 Residence Score Rent 5 Own with mortgage 20 Own outright 50 Length of residence Score <1 year 0 1–5 years 25 >5 years 40 Job stability Score <1 year 0 1–5 years 25 >5 years 50 Credit history Score No record 0 Missed a payment in last 5 years −15 Met all payments 40 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.