Youma Bank & Trust Consumer Loan Policy Youma Bank & Trust, a fictitious state-chartered bank located on the campus of the University of Maine at Augusta, strives to follow all Maine State and federal banking laws, rules and statutes, including: Federal Reserve Regulations A, B, C, G, M, O, T, V, Z, and BB, the Fair Housing Act and the Maine Banking Code (MRS 9-B). We evaluate all consumer loans in a fair, honest, nondiscriminatory manner, following this written Consumer Loan Policy, granting exceptions to The Policy when allowed. The Bank serves the Credit and Banking Needs of our Loan Service Area: Augusta, Hallowell, Farmingdale and Gardiner, per Community Reinvestment Act or CRA (REG BB) requirements. The Bank strives for the top CRA rating. Youma Bank & Trust serves consumer lending customer applicants with residences in the following Maine cities and towns: Augusta, Hallowell, Farmingdale and Gardinerno exceptions to this rule. Applicants must have reached the age of 18 to be considered for a loan request without the addition of a qualified co-signer. The co-signer must also meet all the Youma Bank & Trust Consumer Loan Policy guidelines. Applicants must have established a minimum of 1 year (12 months of residence) in at the same address. Exceptions are granted on a case-by-case basis. Individuals that have made a recent move to take a new position or have moved from a rent to a home (mortgage or own outright) may be given consideration if they fall under the 12-month residency minimum. Applicants must have a minimum of 12 months employment with their current employer. Exceptions are granted when the applicant has improved themselves with a recent job change, and the new position is within their established field of expertise or education. The maximum debt-to-income ratio is 40% on a gross monthly income basis. Exceptions are granted on a case-by-case basis, but not to exceed 45%. The minimum FICO credit score is 675--no exceptions. To be considered for consumer credit, the applicant must have had no repossessions in the past 7 years or declared consumer or business bankruptcy in the past 10 years--No exceptions. In real estate loan transactions, the Loan-to-Value Ratio maximum is 80%--no exceptions. There is a minimum down payment of 10% (based on the sale price of the collateral) on all auto, boat, ATV, motorcycle and snowmobile loans. There is a minimum net worth requirement of $10,000no exceptions. Youma Bank & Trust does not provide loans for mobile homes (with no land, chattel loans) or light aircraft loans for personal, non-commercial use.

Based on the Policy Above:

Scenario Seven: Gloria Gustav, Ph.D. (credit score 824- age 64) is a retired school superintendent from the greater Boston area that settled at her West River Road, Sidney, Maine address for the past 11 years. She has no debt, and a net worth of $545,000. Dr. Gustav would like to borrow $5,000 ($50,000 cash down payment) to purchase a brand-new 2021 GMC Sierra pick-up truck selling for $55,000 (buyers order figure). Due to her high credit score you can offer potentially her a low APR of 4.99% for a short-term installment loan of 12 months (1 year)with a proposed monthly payment of $428. Her annual gross income from her Massachusetts State Pension is $155,321. This is an online application.

1. What is her monthly gross income? $_______________
2. What is her debt to income ratio with the proposed auto loan payment included? _____%
3. What is your loan decision? APPROVED DENIED

Support your loan decision based on the Youma Bank & Trust Consumer Loan Policy: