Saved Chapter 21 Managing Credit Risk on the Balance Sheet i 2 Problem 21-2 (LG 21-2, LG 21-3) Suppose you are a loan officer at Carbondale Local Bank. Joan Doe listed the following information on her mortgage application: Characteristic Value $31,000 Annual gross income. TDS 12% Relations with FI Checking account Major credit cards Age Residence 2 40 Own/Mortgage Length of residence 4.5 years Job stability 3.0 years Credit history Missed 1 payment 1 year ago Characteristic Characteristic Values and Weights Annual gross income. $10,000-$25,000 $25,000-$50,000 $100,000 60 50% 35%-50% 0 Score -10 Relations with FI Checking account 20 Savings account 10 None 0 Both Score 20 None Major credit cards Score 10 Between 1 and 4 20 25-60 25 5 or more 10 Age >60 0 5 years 40 Score 0 Job stability >5 years $100,000 60 50% 35%-50% 0 Score -10 Relations with FI Checking account 20 Savings account 10 None 0 Both Score 20 None Major credit cards Score 10 Between 1 and 4 20 25-60 25 5 or more 10 Age >60 0 5 years 40 Score 0 Job stability >5 years