Chat with AIExam 15: Evaluating Consumer Loans
Which regulation requires out-of-state-banks that acquire local banks to commit to continued lending in the area and not use the acquired banks simply as deposit gatherers?
(32) 
VerifiedE
Which of the following has the lowest weight in determining a consumer's FICO score?
(41) VerifiedA
How do banks use credit-scoring models? If you were developing such a model, what factors do you think would be important in determining if an applicant is a good credit risk?
(35) 
Answered by Examlex AI CopilotBanks use credit-scoring models to assess the creditworthiness of potential borrowers. These models help banks determine the likelihood that an applicant will repay their debts on time.
If I were developing a credit-scoring model, I would consider several important factors in determining if an applicant is a good credit risk. These factors may include the applicant's credit history, payment history, debt-to-income ratio, employment stability, and the length of time the applicant has been at their current residence. Additionally, I would also consider the applicant's credit utilization, the types of credit they have, and any recent credit inquiries.
By analyzing these factors, a credit-scoring model can provide banks with a comprehensive assessment of an applicant's creditworthiness, helping them make informed decisions about lending. This ultimately helps banks manage their risk and ensure that they are lending to individuals who are likely to repay their debts responsibly.
Use the following information for questions
A bank customer is granted credit for a $2,000 loan at 10% to be repaid in 12 equal installments.
-If the loan is a discount loan, what is the monthly payment?
(33) The only quantitative measure of a consumer loan applicant's character is their:
(35) The Tax Reform Act of 1986 made home equity loans more appealing by:
(46) Credit cards are profitable for banks because many customers are prince insensitive.
(35) Today, many banks target individuals as the primary source of growth in attracting new business.
(29) The most important of the five Cs of credit when evaluating a consumer loan application is:
(35) Individuals work out a court supervised repayment plan under:
(33) Under the Equal Credit Opportunity Act, for which of the following is it illegal for a bank to discriminate against borrowers?
(40) Which of the following has the greatest weight in determining a consumer's FICO score?
(33) Which of the following is an example of a non-installment loan?
(45) What is indirect lending and how does it benefit both dealers and banks?
(37) During 2007 - 2008, many borrowers had ________ in their homes causing individuals to "walk away" from their homes.
(42) 
Filters
- Essay(0)
- Multiple Choice(0)
- Short Answer(0)
- True False(0)
- Matching(0)