11-71 Which of the following loan applicant characteristics is not relevant in the credit approval decision?

Question

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All of the listed loan applicant characteristics are relevant in the credit approval decision. The lender needs to assess the borrower's leverage position to ensure they have the ability to repay the loan. Borrower income provides insight into the borrower's ability to generate cash flow to cover debt payments. The value of collateral is crucial in the event of default as it represents the lender's security to recoup their losses. Finally, the borrower's reputation can give the lender insight into the borrower's character, ability to honor obligations, and likelihood of loan repayment.

11-71 Which of the Following Loan Applicant Characteristics Is Not