please tell the answer of this case and process, Thank you.

Read the case of Brian and Julia Wong. Complete the required questions and analyze the case using the 5 C's of credit in order to determine whether you will approve this loan.

Brian and Julia Wong have approached you for a consolidation loan. Brian started a new job three months ago with a small but successful consulting firm, Dynamic System. Dynamic System consulting has been in business for the past six years and deals with your bank. Dynamic System is one of your best commercial accounts.

`Brian and Julia are recently married and have struggled with bringing their finances together. They would like to buy a home but are concerned that they should improve their current situation first before taking on such a huge responsibility. Brian is 27 and Julia is 26. They are renting an apartment for $1,800 a month where they have lived for the past three years.

Brian has just completed his Degree in B-TECH from NAIT. His salary as a software consultant is $65,000. He has obtained honors standing in all his courses, which he is very proud of! While attending NAIT, he worked part time at a local Call Centre for $14 hour for the past four years. He worked about 14 hours a week while he was in school; in the spring and summer, he worked the equivalent of full time or 40 hours a week.

Julia has worked as a Finance Officer at a local GMC dealership for the past three years. Her present salary is $45,000, but she does receive bonuses based on performance. Her first year she received and bonus of $5000, $5000 second year and third year was $9000. She anticipates this year that she will receive $15,000, as she is a top finance officer in selling additional features like warranty and add-ons. She has her Finance Diploma from NAIT. NAIT is where Brian and Julia met.

Brian and Julia obtained a loan for $25,000 for a 2015 GMC Acadia last through Julia's dealership, they were able to secure a better rate than our bank could. The loan's rate is at 9.0% with a 48 month term.They do not know the exact outstanding balance, but tell you there are thirty-six months remaining in the term.The Acadia book value is $20,000.

They also have a 2008 Toyota.Its book value is only $1,000.

Julia has $5,000 in an RRSP in Equity Mutual Funds with your bank.

Their balance in the chequing account with you is $1,000. Julia has a $35000 GIC at our bank. (this GIC was part of her inheritance it is in a locked in term for another 3 years at a rate of 4%).

Brian has a student line of credit at $15,000, which is also at your bank. The rate is prime + 2%, since graduation, he has had to start making payments, which will be now calculated as a regular unsecured line of credit.

The couple's cards are at their maximum. They have a BMO MasterCard with a balance of $5000, your Bank Visa which has a balance of $5,000.The Credit bureau show current ratings are all R1;however, previous ratings include twoR2s andone R3 in the last year. There is also a collection for an unpaid utility three years ago which has since been settled. Brian and Julia can provide proof of payment. Brian has a loan that he is paying $500 per month, from a previous consolidation loan prior to meeting Julia. The balance remaining is $12,000 and is with Scotia Bank.

Julia has $6,000 in jewelry and Brian has a Disney print that he says is valued at $15,000.

Questions:

1.Calculate the payment and remaining balance on the GMC loan

2.Calculate their net worth before the loan

ASSETS

LIABILITIES

PAYMENTS

TOTAL

NET WORTH

3.Calculate the Wong's TDS based on their current situation

BEFORE - TDS Calculation

Calculating TDS Ratio

Monthly Housing Costs

ALL Other Applicable Consumer Debt

Anticipated New Loan Payment (omit for the BEFORE)

DIVIDED BY Gross Monthly Income

TDS RATIO =%

4.Analyze the Wong's request for a consolidation loan for all their debt(excluding student line of credit), excluding the car. Use a fixed rate of 8.50 % and a 48 month term.

TDS - AFTER - Calculation

Calculating TDS Ratio

Monthly Housing Costs (including taxes & heating)

ALL Other Applicable Consumer Debt

Anticipated New Loan Payment

DIVIDED BY Gross Monthly Income

TDS RATIO =%

5.You recommend to Brian and Julia that they consider using the GIC as collateral to reduce the interest rate on their loan from 8.50% to 5%. Julia thinks this may be a good idea, calculate the loan payment at 5%.

6.What will the new TDS be with the new payment in the previous question?

7.Julia agrees to put her GIC as collateral for the loan. What documentation is required for your file to be compliant?

8.What documentation will you require from the couple to satisfy your file?

9.You are also considering using Julia's bonus income to reflect a better TDS for your underwriters. What income confirmation would you need to obtain from Julia to meet compliance requirements for your loan? Explain how you would calculate this income

10. What information to you need to ensure that you payout all debt correctly? What if anything will you need to prepare?

CREDIT SUBMISSION

1. Character

Satisfactory

Marginal

Unsatisfactory

2. Capacity

Satisfactory

Marginal

Unsatisfactory

3. Capital

Satisfactory

Marginal

Unsatisfactory

4. Collateral

Satisfactory

Marginal

Unsatisfactory

5. Credit

Satisfactory

Marginal

Unsatisfactory

Credit Decision:

Approve

Decline

Modified

Principle =

Interest Rate =

Term=

Payment=

Decision.

List the 5'C's recommend approval with collateral and credit counselling.