A loan officer is examining your income and the amount of your existing debt payments to help in the decision to make a loan to you today.Which aspect of the Five Cs of lending is the loan officer most likely looking at?
A)Character
B)Capacity
C)Capital
D)Collateral
E)Conditions

Question

Quizplus · Accepted Answer

The loan officer is most likely looking at the capacity aspect of the Five Cs of lending, which refers to the borrower's ability to repay the loan based on their income and existing debt payments.

A Loan Officer Is Examining Your Income and the Amount