Loan - Policy Appendix

Question 1

Maximum Loan to Value by Collateral Type is covered in which Appendix?

Answer 1

Appendix A

Question 2

The terms of a loan should never exceed or approach _________ of the collateral?

Answer 2

The maximum useful life

Question 3

What does FirstBank value more, purchase price or appraisal price?

Answer 3

Purchase price

Question 4

What are 6 normal closing costs?

Answer 4

Origination fees
Title policy premiums
Attorney fees
Third party inspection fees
Appraisal fees
Fees required to perfect the security interest in the collateral pledged

Question 5

Seller Concessions

Answer 5

Obligations paid by the seller of the home that are required by the buyer

Question 6

What are the two guarantees from traditional whole life insurance?

Answer 6

The size of the death benefit

He rate of cash value growth

Question 7

For unsecured loans, FirstBank normally limits the credit amount to what percentage of the borrowers tangible net worth?

Answer 7

10%

Question 8

What section of loan policy do you look at for more guidance on unsecured lending?

Answer 8

V.B.6. Underwriting Criteria

Question 9

Advance rate (%) for accounts receivable collateral?

Answer 9

80%

Question 10

Percentage advance should not exceed ________ for inventory collateral?

Answer 10

50%

Question 11

Where do you go to access additional information regarding loans secured by accounts receivable and inventory?

Answer 11

Chapter XI.C.1. And 2

Question 12

What percentage down payment is required on used equipment?

Answer 12

25%

Question 13

Where do you go to access additional information regarding loans secured by furniture, fixtures, and equipment?

Answer 13

Chapter XI.C.3.

Question 14

What is covered in Appendix B?

Answer 14

Unique Properties

Question 15

What are included as ‘residential properties’?

Answer 15

1-4 family properties and vacant residential lots

Question 16

What does Appendix F cover?

Answer 16

Private Mortgage Insurance (PMI)

Question 17

What is covered in Appendix I?

Answer 17

Condominium and Factory Built Housing Guidelines

Question 18

How is owner occupancy defined?

Answer 18

Primary residence or second home

Question 19

What 2 placed do you look for guidance regarding condominium project eligibility?

Answer 19

Conforming Guidelines and Private Mortgage Insurance Eligibility Workbook

Question 20

What property types are considered ‘factory built’?

Answer 20

Manufactured
Modular
Panelized
Prefabricated

Question 21

What topic is covered in Appendix L?

Answer 21

Flood Insurance

Question 22

What topic is covered in Appendix M?

Answer 22

Officers Lending Limits

Question 23

What appendix is the prepayment penalty clause found in?

Answer 23

Appendix J

Question 24

What appendix covers loan to value guidelines?

Answer 24

Appendix H

Question 25

What appendix covers condominiums, townhomes, and factory built housing guidelines?

Answer 25

Appendix I