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 Two: Bob Brown (797 credit score age 66) is an Uber Driver and long-term substitute teacher at RSU2 schools primarily at Hall-Dale High and Middle Schools. Mr. Brown is a retired public-school teacher (33 years at Cony High in Augusta, ME), and has lived at the same address in Farmingdale, Maine for the past 8 years. His old 1999 VW Golf (loan paid in full) finally stopped working, and he is looking to finance a 2021 VW Jetta TDI Wagon, featuring a selling price of $28,500 (buyers order figure). Eight years ago, he divorced, and purchased his new home in Farmingdale for $189,000 in cash (401K proceeds). Brown has a net worth of $212,000. His only listed debt is a $555 boat loan (2016 Triumph 17-footer) which has a loan balance of just under $2,000. His combined annual gross income (Uber driving, subbing and pension) is $93,000. A 6.99% APR loan for 36 months on $24,000 financed (he is making a $4,500 cash down payment) equals a proposed $741 monthly auto loan payment on the 2021 Jetta. 6. What is his monthly gross income? $_____________ 7. What is his monthly debt figure (the amount you need to calculate his debt-to-income ratio) $________? 8. What is the debt to income ratio for this loan request? ________% 9. What is your loan decision? APPROVED DENIED 10. List ONE reason for your decision, based on ONE of the 5 Cs of Credit: