AMP 415 Week 4 Assignment Interview Activity with Written Reflection

Tracey Vest

AMP-415

Interview

INTERVIEW

When analyzing a loan, how do you utilize the financial statement?
The financial statement is used as a snapshot or a summary of the persons or companies assets and liabilities. This is the basis to see if they qualify. It is what give a pulse of what the client’s assets or liabilities have to offer my firm. It is basically the starting point to see what they we will need in order to make a loan happen or not happen.
Are there any significant limitations when using the financial statement for your analysis or is there more involved?
Since the financial statement is just a snapshot or summary we need more information in order to make our decision. We would also need to ask the client for multiple tax returns and full bank statements. We then analyze all three together. We need these other things because the financial statement will not give us the client’s history of employment or credit. Yes, we also pull their credit scores as well for it will give us a better insight to our client’s background.
What other information is important for making managerial accounting decisions?
Well, we need to analyze the tax returns going 2 years back. There are 3 different kinds we look at. They are a W2, Self, and Owner of business. We also ask the client for any other source of income they would like to let us know about. If it’s an Owner of Business, they have to own or be a shareholder of at least 25% of the business for us to accept it as such. So we will analyzed their full income after everything has been received. Also you have to know and understand that there are fur types of business structures. The four different types are corporation, partnership, sole proprietorship, and limited liability company (LLC). So when dealing with our client we need to know which one they will fall under to help move our process along smoothly.
When getting your final analysis on whether you’re going to give a loan or not, what would be your deciding factor?
There are many things that we take into account before we make our final decisions. We look at their credit score, the loan size they are applying for, the new monthly payments (we have to see if we are refinancing and existing loan or if this is going to be a completely new loan, or handle purchase transaction.) We base our approval off of their credit and equity (we consider what the loan is for and if the value is enough to support the loan). We will not give or re-due a loan if it has negative equity.
Do you have any tricks that you have learned through out your years of experience in order to move your analysis quickly?
The first thing you need to do is learn the ins and the outs of a pay stub. You have to quickly be able to recognize what types of pay stubs are being handed to you and familiarize yourself with the important areas of them. As long as you can quickly look at know what you are looking at, it takes the process time away.
What is the hardest (in your opinion) in your job and why do you feel this way?
The hardest thing I would have to say is time management. There are so many things that factor into loans it is unbelievable sometimes. When dealing with loans, we have to make sure we have enough time to set up meetings with the clients and once we have a set meeting we have to try and decide how long a meeting may or may not take. Then once we finish with the client we have all the paperwork that we have to go through. After we finally make our decision, there is a four step process that the loan has to go through before we give our answer. The four step process includes: (1) clients application for loan, (2) the analysis, (3) the approval or disapproval (if disapproved we have more paperwork to have to explain why we are disapproving), (3) Preparing of the paperwork, (4) Closing of the loan. Since there are four steps there are other people that it goes through before I can give the client the final answer. I basically get as much information as possible from the client and help them fill out the application. I try and set them up for success so to speak. I am the Underwriter. I then send it to my Over rider (Adjusters) who do the final evaluation. This can either take minutes to a couple of weeks depending on the situation and details involved.
I have learned a great deal from this interview. It takes a lot more than just having a job and paying your bills on time to get approved for a loan. I have found that it takes a steady income, collateral, and good credit history in order to receive help from an institution.
Zack Rattray
Mortgage Banker
Chase Bank
1000 Orange Avenue
Coronado, CA 92118
Phone: 619-405-9178
Fax: 866-421-5406
Zack.rattray@chase.com
Graduated from San Diego State University with Economics Degree in 1996. Before he worked in the financial department he was a bank teller. Has been working with Chase since 2001.