Credit Evaluation School Instructor eBook - Oct 2023

People:

Borrower: Dexter Morgan Forensic Technician at Miami ‐ Metro PD W ‐ 2 income: $78M (at origination)

Purpose:

Purchase personal residence for $300M 27 years remaining on 30 ‐ year fully amortizing term loan

Payment: Protection: Problem: Prospects:

Debt ‐ to ‐ income ratio: 34% @ origination

First lien on residence LTV: 88% (at origination) Late history: 03/00/00 Monitor for slow payment

Introductory Consumer Credit Quick Hitter ‐ Pass Ask students to identify the 6 ‐ Ps Ask and discuss with students why there is no current income, debt to income ratio, or LTV. Ask students to review and consider what most important facts are Ask students to rate the loan: Pass, Criticize or Classify?