leti isesAatrina/AppDatato a package Micro eft Microsomag twekyb3ditbre Te p sta
ID: 348879 • Letter: L
Question
leti isesAatrina/AppDatato a package Micro eft Microsomag twekyb3ditbre Te p stateDownloadMA200 200 pdf Situation 2 Ricardo approaches banker Linda about a credit card. He also may be interested in a home equity line of credit. He wants to know about interest rates and terms. Ricardo explains that his ex-spouse “really messed up their credit" and wants to know if this will have any bearing on his ability to get the loan How should Linda respond? Situation 3 Daniel inquires about home improvement loans. He tells Angela, the banker, that he would like to build a new garage and needs about $15,000 to do so. Daniel is not familar with any of the bank's products and he would like to know about rates and possuble payment amounts. He states that there are two liens on his home alkeady (countin wall consider a third lien if he makes the applieation g hus mortgage) and would like to determine if the bank Hou should Angela rapond?Explanation / Answer
Situation 1: Thomas should respond by saying that the bank will consider her application and determine her credit score. Thomas will inform Janice that a bank has an operating protocol with regards to its internal control when sanctioning new loans and Janice’s application will go through this mechanism before the bank can determine whether it will be able to offer her loan or not. The response should be formal and to the point but should be devoid of any commitment in the form that bank will seriously consider the loan request.
Situation 2: Linda should respond by clearly stating the banking laws and regulations to Ricardo. She should inform Ricardo that his credit history will have a direct and significant bearing on his application for a new credit card as well as for the home equity line of credit. Facts of the matter and position of the bank should be stated clearly and unequivocally and Ricardo should be informed that if his credit history is not good then chances of procuring a new credit card and home equity line of credit will be bleak.
Situation 3: Angela should respond by providing comprehensive information to Daniel about the different products of the bank, the associated rates of interest and the associated payment amounts. Angela should inform Daniel about the policies of the bank with regards to credit and risk management and whether the policy will allow the bank to consider a third lien on Daniel’s home (or not).
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