Credit Evaluation School Dec 2022

Reference Guide for Credit Documents

Application • Request by an applicant to borrow money from the bank • Commercial applications are very basic because the financial information is provided separately • Residential/consumer applications are very comprehensive – Name – Address and time lived there – Employer and length of employment – Income information – Debt information

– Purpose of the loan – Amount requested – Consumer law requirements

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Reference Guide for Credit Documents

Appraisal/Evaluations • Establishes value of the collateral provided by the borrower • Bank’s loan policy will have minimum LTV requirements • Appraisals/evaluations must meet regulatory requirements • Regulatory LTV guidelines and reporting requirements • Consumer credits most likely use purchase price or NADA

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