Risk-Based Lending (RBL) Structure - Consumer Loan Guidance
DEBT RATIO (DR)
Secured 43% May approve up to 48%(DR) - if credit score is
700+
May approve up to
45%(DR) - if credit score is 650+
Unsecured 40% May
approve up to 45%(DR) - if credit score is 700+
May
approve up to 43% (DR) - if credit score is 650+
PRICING MATRIX by Credit Score
750 & Higher Tier
1+
675 - 749
Tier 1
674 - 650
Tier 2
649 - 630
Tier 3
619 - 530
Tier 3-
TIER RATES
Effective: 12/01/2006
Description
Tier 1
Tier 2 Tier
3
New Vehicle 06 - 08
5.95%
6.65% 10.95%
Used Vehicle (1-5yrs.) 6.85% 7.45% 12.95%
Used Vehicle (6+
yrs.)
8.49%
9.45% 14.95%
Other Secured (New-4yrs.) 7.40%
9.40% 12.95%
Other Secured (5+
yrs.)
9.40%
12.45% 16.95%
Share/Cert Secured
3.00%
3.00% 3.00%
Signature 9.950%
12.99% 18.00%
*Signature limited to two months salary – maximum term 36 months Tier 1 or 2 only,
Tier 2 with two collection
or two past due within the year will be changed to Tier 3
Terms by Collateral
Age**
New & 1-2 years
72 months .50% added to rate over 60 months
2-5
years 66 months
6-7 years 48 months
8 years + 36 months
**Vehicle loan in excess
of $20,000 may qualify for extended terms (up to 72 months) with .50 added to tiered
rate, at Loan officers’ discretion. If over 120% LTV, but does not exceed
130%LTV, and falls in tier 1 or 2, 1.00% will be added to rate for blended rate.
Limits maybe exceeded
with CEO approval – one tier 1 or 2 – not to exceed 12 years.
Used LTV
Tier 1 – Retail
value
Tier- 2 Wholesale
Tier-3 Loan Value
*** Proof of income
may not be required on credit scores of 700+, at Loan officers’ discretion. Proof
of income on all others will be required annually.
****Credit report
may be required at every six months to determine if tier rate has changed.
Tier rates may be changed,
but only with Loan Officers written justification and only by one tier.
Mobile or travel trailer
used as primary residence that exceeds 8 years will be 10%.
Loan secured by C.D’s.
will remain at a spread of at least 3.00% at all times.
Other secured loan
will include electronic equipment, purchase of household goods, appliances,
Classic Automobiles, and or any items that can provide proper appraisal and UCC
filing requirements. Other secured loans will not exceed 100% of purchase price
Mobile homes, RV’s,
meeting IRS requirements as primary or secondary home (not rental) That
exceeds 8 years will be 10%.
For further reference
new and used vehicles also include such items as motorcycles, ATV’s,
Boat/Motor/Trailer,
RV’s, Tractors and equipment.
