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Bank > PFIA > Flashcards

PFIA Flashcards

1
Q

In what order are assets listed on a financial statement?

A

In order of liquidity

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2
Q

What are three options for verifying the value of real estate?

A

Valucheck, tax assessment, and comparable sales

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3
Q

What are three ways to verify the value of an automobile?

A

Recent purchase order (if new), NADA guide, and Kelly Blue Book

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4
Q

T/F: the bank should transfer the most conservative figures to the PFIA?

A

True

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5
Q

% used in place of unknown payment amount on a loan to determine if borrower can repay loan.

A

Payment Factor

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6
Q

Calculation of months of total debt coverage based on the level of current assets.

A

Current Assets / Monthly Payments

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7
Q

How many months of debt coverage by assets is preferred?

A

12 months

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8
Q

Indicates the level of a borrowers financial leverage.

A

Debt / Asset Ratio

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9
Q

What is considered a strong debt to asset ratio?

A

50% or less

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10
Q

What should most of the information for the PFIA come from?

A

Tax Return

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11
Q

A non cash expense to account for the decrease in value of assets due to age.

A

Depreciation

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12
Q

A non cash expense related to earlier cash expenditures that can be periodically deducted over time.

A

Amortization

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13
Q

A non cash expense to account for the use or consumption of mineral resources.

A

Depletion

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14
Q

Annualized debt payment figure.

A

Total Cash Required to Service Debts (TCR)

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15
Q

Remaining cash after all existing debt has been serviced.

A

Residual Income

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16
Q

Debt Servicing Ratio (DSR)

A

TCA / TCR

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17
Q

Residual Income

A

TCA - TCR

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18
Q

DSR required for RI of $90,000

A

1.5

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19
Q

DSR required for RI of $50,000 - 90,000

A

1.7

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20
Q

DSR required for RI of $30,000 - 50,000

A

2.0

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21
Q

DSR required for RI less than $30,000

A

2.5

22
Q

PFIA income statement shows current ________ income.

A

Annualized

23
Q

On a PFIA that does not show any housing or rent expense what amount should be included for CO residents?

A

$500

24
Q

A customer bankruptcy older than _____ years old should not be taken into account.

A

7

25
Q

For employment history, we like to see _______ months in current job or ______ in previous position.

A

6-12, 1 yr

26
Q

For residency, if applicant has been at current address less than 1 yr what do we need?

A

Former address

27
Q

What are three compensating factors on a weaker PFIA?

A

Excellent Credit
Strong Collateral Position
Long Term Banking Relationship

28
Q

As a general guideline, aggregate unsecured credit with FirstBank should normally be limited to ________ of a borrowers “tangible” net worth.

A

10%

29
Q

___________________ will not be a factor when underwriting unsecured lending credit up to ____________.

A

Net worth, $10,000

30
Q

For a secured revolving loan what is the payment factor?

A

1%

31
Q

For an unsecured revolving loan what is the payment factor?

A

3%

32
Q

What payment factor do you place on a secured revolving loan being paid off in 10 years?

A

1%

33
Q

What payment factor do you place on a secured revolving loan being paid off in 5 years?

A

2%

34
Q

What payment factor do you place on a secured revolving loan being paid off in 3 years?

A

3%

35
Q

On non-taxable income what must you times it by for the PFIA Income?

A

Gross up 25% (times by 1.25)

36
Q

What is a great PFIA resource on the intranet?

A

Cash Flow Analysis

37
Q

DO NOT use _________ as a mitigating factor.

A

LTV

38
Q

Calculation for DSR.

A

Total Annual Income (TCA) / Total Annual Expenses (TCR)

39
Q

Calculation for RI.

A

Total Annual Income (TCA) - Total Annual Expense (TCR)

40
Q

Calculation for Percentage of Total Cash Available.

A

Total Revolving Debt / Total Annual Income

41
Q

Calculation for Net Worth.

A

Assets - Liabilities

42
Q

What payment factor do you use on student loans?

A

1%

43
Q

What payment factor is used for installment loans (with no stated payment)?

A

2%

44
Q

For cash required for loan, what amount do you use for existing debt?

A

Remaining balance (amount)

45
Q

For cash required on new debts what amount do we use?

A

Full amount

46
Q

What income MUST we use?

A

ONLY income stated on tax return.

47
Q

For LTV what must you use for 1LOC’s and HECR’s?

A

Full limit not balance

48
Q

_____________ equity is the portion of the equity that we would be willing to use as collateral for a loan.

A

Lendable

49
Q

What is the formula for lendable equity?

A

(Value of asset x maximum LTV %) - total amount owed

50
Q

What is problem FirstBank debt that we switch from revolving to installment. Does not qualify for consolidation.

A

Workout loan

Bank (28 decks)

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