Credit Evaluation School Instructor eBook - Oct 2023

SCENARIO 2 CONTINUED  Bank advanced $25,000 for purchase of a recreational boat and trailer.  Borrower has steady income and all payments have been made, and although they will occasionally run 15 or more days late, none have been more than 30 days late.  Payments are current at this time. Boat and trailer are worth $35,000.  The bank holds the title to the boat, but not to the trailer.  As more files were reviewed, it was discovered that of the 20 other boat loans that were made, the bank did not receive title to any of the trailers. What would you recommend in this case?  Pass  Special Mention  Substandard  Doubtful  Loss