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 Four: Douglas Desjardin (676 credit score- age 45) has a true weakness for credit cards. He is a veteran sportswriter (21-years) for the local Augusta daily newspaper ($42,000 gross annual salary) and tends to charge everythingwhether its a trip to the grocery store, or a winter vacation to a Florida resort. His net worth is $14,000. Mr. Desjardin takes care of his elderly mother and has lived in her Hallowell home (the past 3 years) rent free. Here are his monthly credit card payments: VISA $555, MasterCard $501, Discover $385, and American Express $333. He also pays $1,000/month in alimony (was divorced 3 years ago). Mr. Desjardin owes a total (aggregate) balance on the four cards of $12,000 and would like to close out and cut up all four cards (you agree to this as a condition for possible loan approval) and be considered for a personal, credit card consolidation loan in that amount. You quote him a 15.99% APR loan-- financing $12,000 for 3 years (36 months)which equals a potential monthly personal loan payment of $422.

1. What is his gross monthly income? $_____________
2. What is the monthly debt figure in dollars you will use to calculate his debt to income ratio? $_______
3. What is your correctly calculated debt to income ratio on this credit card consolidation (personal, unsecured) loan request? __________%
4. What is your loan decision? APPROVED DENIED