5 C's of Credit
Financial Analysis
Appraisals
Other
100
The borrowers financial ability to meet current obligations.
What is Capacity
100
Ease to which an asset can be converted to cash
What is Liquidity
100
Obtained when an appraisal is not required
What is a Real Estate Evaluation
100
When the LTV exceeds the supervisory LTV
What is a FIDICIA Exception
200
The borrowers attitude towards credit obligations
What is Character
200
How much of the company do the creditors own versus the shareholders.
What is Leverage.
200
When an appraisal is required per regulations, but not obtained
What is a FIDICIA Violation
300
The 5 C's of Credit
What is Character, Capacity, Capital, Collateral & Conditions
300
Statement of Personal Net Worth
What is a Personal Financial Statement
400
Refers to the borrowers assets & net worth
What is Capital
400
The amount of income remaining after all expenses are incurred
What are Profit Margins
500
The most important of the 5 C's of Credit
What is Character
500
Corporations profits not distributed to stockholders
What is Retained Earnings
500
Collateral taken but not relied upon for it's value
What is 'Abundance of Caution'
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