Hit the Books: Assets Case Studies

Transcription

1 Hit the Books: Assets Case Studies Instructions Work through the assets case studies on the following pages. When you have finished, return to the e-learning lesson to confirm that you have completed the case studies. You will then be able to access an answer key to check your work.

2 Assets Case Study 1 Review the bank statements on the following pages. As necessary, highlight and comment on the following eight items: 1. Are borrowers names and account numbers clearly shown and consistent with all other documentation? 2. Are the statement dates consistent? 3. Are all pages present? 4. Do the beginning, ending or current balances from month to month match? 5. Are there recent large deposits that need to be explained? 6. Is there a history of returned checks for NSFs (non-sufficient funds)? 7. Does the borrower have any automatic loan withdrawals? 8. Is there a pattern of regular monthly deposits that support the income stated by the borrower? Comments: Do you have enough information to calculate the total assets? If yes, show your calculation below:

3 JOSEPHINE SMITH 123 FIRST STREET, P.O. Box Website Atlanta, (800) Page 1 (888) STATEMENT DATE: 9/24/2015 ACCOUNT NUMBER: FIDELITY NATIONAL: SERVICE. SOLUTIONS. SIMPLICITY 19 BRANCHES * * REGULAR DEMAND ACCOUNT Account #: PREVIOUS BALANCE DEPOSITS/CREDITS 4 2, CHECKS/DEBITS 33 1, SERVICE CHARGE 0.00 CURRENT BALANCE DESCRIPTIVE TRANSACTIONS Date Tracer Description Amount SMITH'S BAR ROSWELL RD BOB'S ON CYPRESS EXXONMOBILE WACHOVIA CAMBRIDGE SQUARE KROGER #652 S BELLSOUTH CONSUMER ATT AT&T SERVS CSX # BRADFORD & SONS PAYROLL SEPHORA - LENOX SQUARE SMITH'S BAR ROSWELL RD INTERNET BANKING FUNDS XFER PROVIDIAN PAYMT CREDITCARD INTERNET BANKING I-NET FEES BOB'S GOURMET RECOR PAPA JOHN'S # ECKERD DRUGS # BP OIL NOTE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION

4 JOSEPHINE SMITH 123 FIRST STREET, P.O. Box Website Atlanta, (800) Page 1 (888) STATEMENT DATE: 10/24/2015 ACCOUNT NUMBER: FIDELITY NATIONAL: SERVICE. SOLUTIONS. SIMPLICITY 19 BRANCHES * * REGULAR DEMAND ACCOUNT Account #: PREVIOUS BALANCE DEPOSITS/CREDITS 2 1, CHECKS/DEBITS 27 2, SERVICE CHARGE 0.00 CURRENT BALANCE DESCRIPTIVE TRANSACTIONS Date Tracer Description Amount BRADFORD & SONS PAYROLL TEXACO INC BURT'S ABERNATHY BURT'S ABERNATHY BURT'S ATM USAGE FEE INTERNET BANKING FUNDS XFER ATT AT&T SERVS CVS # BOB'S GOURMET RECOR BURT'S ABERNATHY BURT'S ATM USAGE FEE EXXONMOBILE PROVIDIAN PAYMT BOB'S GOURMET RECOR BELLSOUTH CONSUMER ALLSTATE INSURANCE IL KINKOS TX RESTORATION NOTE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION

5 JOSEPHINE SMITH 123 FIRST STREET, P.O. Box Website Atlanta, (800) Page 1 (888) STATEMENT DATE: 9/24/2015 ACCOUNT NUMBER: FIDELITY NATIONAL: SERVICE. SOLUTIONS. SIMPLICITY 19 BRANCHES * * PLATINUM DEMAND ACCOUNT Account #: PREVIOUS BALANCE 1, DEPOSITS/CREDITS 4 3, CHECKS/DEBITS 35 3, SERVICE CHARGE 0.00 CURRENT BALANCE 1, DESCRIPTIVE TRANSACTIONS Date Tracer Description Amount SUNTRUST COLONY SQUARE FOOD COU A130C BURT'S ABERNATHY GEORGIA POWER PMNT WEB MD CORP PAYROLL 1, BURT'S ABERNATHY EXXONMOBILE INTERNET BANKING TFR MCKENDRICKS ASHFORD DUNWOODY AT KROGER PEACHTREE RD S KROGER PEACHTREE RD S LA FITNESS 09/01CSQ MACY'S EAST # TREE OF LIFE DOUGLAS & CO HAIR DE DOUGLAS & CO HAIR DE SUNTRUST COLONY SQUARE FOOD COU A130C4 NOTE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION P.O. Box Website

6 JOSEPHINE SMITH 123 FIRST STREET, Atlanta, (800) Page 1 (888) STATEMENT DATE: 10/24/2015 ACCOUNT NUMBER: FIDELITY NATIONAL: SERVICE. SOLUTIONS. SIMPLICITY 19 BRANCHES * * PLATINUM DEMAND ACCOUNT Account #: PREVIOUS BALANCE 1, DEPOSITS/CREDITS 3 3, CHECKS/DEBITS 40 3, SERVICE CHARGE 0.00 CURRENT BALANCE 1, DESCRIPTIVE TRANSACTIONS Date Tracer Description Amount SUMMITS HWY 9 & ROSWELL RD MAIL BOXES ETC. # WEB MD CORP PAYROLL 1, INTERNET BANKING TFR BURT'S ABERNATHY LA FITNESS 09/01CSQ DOUGLAS & CO HAIR DES DOUGLAS & CO HAIR DES THE OLD SPAGHETTI FA KROGER PEACHTREE RD S GEORGIA POWER ONLINE PMT SUMMITS HWY 9 & ROSWELL RD TOM THUMB RACETRACK RD S VORTEX HILLTOP BLVD TOM THUMB ATM USAGE FEE S MBNA AMERICA ONLINE PMT PETS ARE PEOPLE TOO NOTE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION P.O. Box Website

7 JOESPHINE SMITH 123 FIRST STREET, Atlanta, (800) Page 1 (888) STATEMENT DATE: 9/30/2015 ACCOUNT NUMBER: FIDELITY NATIONAL: SERVICE. SOLUTIONS. SIMPLICITY 19 BRANCHES * * REGULAR SAVINGS ACCOUNT Account #: PREVIOUS BALANCE 8, DEPOSITS/CREDITS 3 1, CHECKS/DEBITS SERVICE CHARGE Interest paid CURRENT BALANCE 10, INTEREST SUMMARY INTEREST EARNED FROM DAYS IN PERIOD 92 INTEREST EARNED FROM ANNUAL PERCENTAGE YIELD EARNED 2.93 INTEREST PAID THIS YEAR INTEREST WITHHELD THIS YEAR 0.00 DESCRIPTIVE TRANSACTIONS Date Tracer Description Amount SAVINGS DEPOSIT SAVINGS DEPOSIT SAVINGS DEPOSIT INTEREST PAYMENT DAILY BALANCE SUMMARY Date Balance Date Balance Date Balance

8 Asset Case Study 2 Review the following retirement savings statements and dividend record for all pertinent items. Calculate the assets available to the borrower and address any items that may need follow-up. Asset Calculation: What amount will you enter on the loan application? $ Additional Items:

9 WebMD Corporation 401(K) Savings Plan Retirement Savings Statement Franklin McGee Social Security Number: Oaks Lane March 1, May 31, 2016 Travis, OH For information virtually 24 hours a day call: Internet Address: Representatives are available 8:30 AM 8:00 PM Your Account Summary Your Asset Allocation Beginning Balance $2, Stocks 100% Your Contributions Change in Market Value Ending Balance $2, Additional Information Vested Balance $2, Dividends & Interest $7.12 Your Personal Rate of Return This Period 1.6% Year to Date -4.5% Your account is currently allocated among the asset classes Your Personal Rate of Return is calculated with the time-weighted formula, a formula widely used by financial analysts to calculate the Investment earnings of a portfolio. It reflects the results of your investment selections as well as any activity in the account. There are other Personal Rate of Return formulas used that may yield different results. Remember that pas performance is no guarantee of future results. Market Value of Your Account Displayed in this section is the value of your account for the statement period, in both shares and dollars. Specified above. Percentages and totals may not be exact due to rounding. Shares on Shares on Price on Price on Market Value Market Value Investment 02/28/16 05/31/16 02/28/16 05/31/16 on 02/28/16 on 05/31/16 Stock Investments $2, $2, Spartan US Eq Index $44.04 $ , , Account Total $2, $2, Remember that a dividend payment to fund shareholders reduces the share price of the fund, so a decrease in the share price for the statement period does not necessarily reflect lower fund performance. Please read the statement carefully. Any error must be reported to Fidelity Investments within 90 days. Page 1 of 5

10 WebMD Corporation 401(K) Savings Plan Retirement Savings Statement Franklin McGee Social Security Number: Oaks Lane June 1, August 31, 2016 Travis, OH For information virtually 24 hours a day call: Internet Address: Representatives are available 8:30 AM 8:00 PM Your Account Summary Your Asset Allocation Beginning Balance $2, Stocks 100% Your Contributions Change in Market Value Ending Balance $3, Additional Information Vested Balance $3, Dividends & Interest $7.65 Your Personal Rate of Return This Period -9.5% Year to Date -13.5% Your account is currently allocated among the asset classes Your Personal Rate of Return is calculated with the time-weighted formula, a formula widely used by financial analysts to calculate the Investment earnings of a portfolio. It reflects the results of your investment selections as well as any activity in the account. There are other Personal Rate of Return formulas used that may yield different results. Remember that pas performance is no guarantee of future results. Market Value of Your Account Displayed in this section is the value of your account for the statement period, in both shares and dollars. Specified above. Percentages and totals may not be exact due to rounding. Shares on Shares on Price on Price on Market Value Market Value Investment 05/31/16 08/31/16 05/31/16 08/31/16 on 05/31/16 on 08/31/16 Stock Investments $2, $3, Spartan US Eq Index $44.58 $ , , Account Total $2, $3, Remember that a dividend payment to fund shareholders reduces the share price of the fund, so a decrease in the share price for the statement period does not necessarily reflect lower fund performance. Please read the statement carefully. Any error must be reported to Fidelity Investments within 90 days. Page 1 of 5

11 DIVIDEND RECORD SHARE OWNER SERVICES PO BOX CHURCH STREET STATION NEW YORK, NY Acct. No Record Date 12/21/ Payable Date 07/27/16 Shares Rate Per Share $ **************AUTO**3-DIGIT 024 Gross Dividend $47.88 FRANKLIN MCGEE Tax Withheld $ OAKES LANE Net Dividend $47.88 TRAVIS, OH YTD Tax Withheld $0.00 YTD Net Dividend $47.88

12 Asset Case Study 3 Review the following bank statements. Calculate their assets and comment, if necessary. Asset Calculation: What amount will you enter on the loan application? $ Comments:

13 Bank of America, N.A. Customer Service PO Box 4899 Atlanta, Page 1 of 1 Statement Period through Number of checks enclosed: 0 B 04 0 C 04 Account Number: 2Z11000 MARRET MECKENHACK 6666 SEAL DRIVE THESDA, Customer Service Information For additional information or service, you may call: Or you may write to: PLUS (7587) Priority Telephone Banking Bank of America, N.A TDD Hearing Impaired PO Box En Espanol Atlanta, Money Market Savings Your Account at a Glance Account Number 2Z11000 Annual Percentage Yield Earned this Statement Beginning Balance on $ 21, Period: 2.90% Deposits and Other Additions Interest Paid Year to Date: $ Ending Balance on $ 21, Money Market Savings Additions and Subtractions Date Resulting Posted Amount($) Balance($) Transaction , Interest Earned Daily Balance Summary Date Balance Date Balance Beginning 21, ,143.66

14 Bank of America, N.A. Customer Service PO Box 4899 Atlanta, Page 1 of 1 Statement Period through Number of checks enclosed: 0 B 04 0 C 04 Account Number: 2Z11000 MARRET MECKENHACK 6666 SEAL DRIVE THESDA, Customer Service Information For additional information or service, you may call: Or you may write to: PLUS (7587) Priority Telephone Banking Bank of America, N.A TDD Hearing Impaired PO Box En Espanol Atlanta, Money Market Savings Your Account at a Glance Account Number 2Z11000 Annual Percentage Yield Earned this Statement Beginning Balance on $ 21, Period: 2.74% Deposits and Other Additions Interest Paid Year to Date: $ Ending Balance on $ 21, Money Market Savings Additions and Subtractions Date Resulting Posted Amount($) Balance($) Transaction , Interest Earned Daily Balance Summary Date Balance Date Balance Beginning 21, ,187.58

15 Bank of America, N.A. Customer Service PO Box 4899 Atlanta, Page 1 of 1 Statement Period through Number of checks enclosed: 0 B 04 0 C 04 Account Number: 2Z11000 MARRET MECKENHACK 6666 SEAL DRIVE THESDA, Customer Service Information For additional information or service, you may call: Or you may write to: PLUS (7587) Priority Telephone Banking Bank of America, N.A TDD Hearing Impaired PO Box En Espanol Atlanta, Money Market Savings Your Account at a Glance Account Number 2Z11000 Annual Percentage Yield Earned this Statement Beginning Balance on $ 21, Period: 2.76% Deposits and Other Additions , Interest Paid Year to Date: $ Ending Balance on $ 61, Money Market Savings Additions and Subtractions Date Resulting Posted Amount($) Balance($) Transaction , , Deposit , Interest Earned Daily Balance Summary Date Balance Date Balance Beginning 21, ,326.48