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 Six: Freddie Furd (Credit Score 672- age 46) is a 27-year veteran employee at Bath Iron Works. He recently paid off his mortgage (has resided at the same Gardiner, Maine address for 23 years), and would like to celebrate this life moment as he describes it by purchasing (financing) the item of his dreams, a 24 foot 2021 Boston Whaler boat he can take out to sea to sport fish for tuna. His net worth is $165,000. Furd has the following monthly debt: $235 payment (personal loan), $333 payment (VISA), $234 payment (American Express), $222 payment (vacation loan). Both credit cards are near their credit line limits. He is a supervisor at The Yard, and his monthly gross income is $7,555. The boats selling price (per the submitted buyers order) $57,500, and he has made a cash Downpayment (100% of the funds provided to him by his mother) of $37,500. He is asking to borrow $20,000 for a 10-year term at 10.75% APR, equaling a proposed monthly payment of $273.

1. What is his debt to income ratio with the new debt added? ___________%
2. What is your loan decision? APPROVED DENIED

Support your loan decision using at least ONE of the 5 Cs of Credit: