Section 12/ UNIT 1

The loan application is used to gather information needed to determine whether the applicant can repay the loan. What information is requested in the application?

Credit references Borrower net worth Employment history

Current employers provide quite a bit of information to the lender. Which of these items are provided?

Probability of continued employment Gross base pay amount Overtime, bonuses, or commissions paid Likely continuance of bonus or overtime pay Information about last and next pay increase

What is the purpose of the loan transfer disclosure?

To notify the borrower that the loan is being resold on the secondary market, and how and where to make future payments

One of the pieces of information the depository institution provides is the average balance for the applicant's accounts. What time period does this average cover?

Two months