Lending Academy: Week 1 Knowledge Check

The Equal Credit Opportunity Act requires that we do all but the following:

Lenders must reasonably contemplate repeated transactions with which type of credit?

When is a Guarantor obligated to make loan payments?

Which of the 5 C's of Credit asks the question, "Does the applicant have any funds in reserve in case of an emergency?"

Based on an individual's borrowing intent, which role would require them to have income to qualify?

Which of the 5 C's of Credit asks the question, "Does the applicant reflect a sense of responsibility and stability?"

True or False? Co-Applicants are eligible for Payment Protection?

What document are we required to provide applicants if their loan is declined?

Which of the 5 C's of Credit asks the question, "Does the applicant's credit reflect an understanding of responsibility and show no signs of credit abuse?"

Which is NOT a step in teh closed-end loan process?

Which of the 5 C's of Credit asks the question, "Does the applicant generate enough income to comfortably maintain their obligations?"

True or False? A Guarantor receives the loan funds and/or loan benefits.

Which of the 5 C's of Credit asks the question, "Does the collateral provide enough security that the loss would be minimal if the applicant defaults?"

When is an Applicant obligated to make loan payments?

Which of the 5 C's of Credit asks the question, "Does the applicant's purpose for the loan and loan terms minimize the default risk?"