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Unformatted text preview: Loan Workout Project Team 4 Math 1324.003 April 4, 2008 2 A p r . 4 Acadia Bank Loan Information Table of Contents TABLE OF CONTENTS .......................................................................................... 2 INTRODUCTION ........................................................................... 3 BACKGROUND INFORMATION ......................................................................... 3 BASIC PROBABILITY AND EXPECTED VALUE ............................................ 4 DATABASE ................................................................................................................ 6 CONDITIONAL PROBABILITY AND EXPECTED VALUE ........................... 8 BAYES’ THEOREM AND EXPECTED VALUE OF Z ..................................... 10 RANGES ................................................................................................................... 11 Random Variable .............................................................................................................................. 12 Expected Value ................................................................................................................................. 12 Action ................................................................................................................................................ 12 Expected Gain from Work Out ........................................................................................................ 12 % of Foreclosure Value ..................................................................................................................... 12 CONCLUSION ........................................................................................................ 13 2 A p r . 4 Acadia Bank Loan Information Introduction Acadia Bank is a nationwide bank with over 400 branches in the U.S.A. and 100 others across the world. The bank is a result of a merger between BR Bank, Cajun Bank, and DuPont Bank. As loan officers employed by Acadia Bank it is our job to make sure that loan payments are received in full and on time. We also strive to find plans that work for our borrowers as well as us so that we both get what we want. Acadia Bank understands the business cycle and understands that businesses may struggle here and there. For this reason we work hard to resolve all loan problems. Acadia Bank prides itself in having the highest success rate for loan workouts nationwide. Background Information Gregory Hayworth took a loan out nine years ago to start G & H Upholstery & Interiors and never had a late payment until the past couple of months. He has failed to make payments for the last three months resulting in a defaulted loan status. It is up to us, Acadia Bank’s loan officers, to decide whether to foreclose on the loan and recover some of the loan amount or create a work out plan that will benefit the bank and the client resulting in full recovery of the loan. Various mathematical calculations were used to help us reach a recovery of the loan....
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 Spring '08
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 Math, Conditional Probability, Probability, Debt, Probability theory, ........., Default, Acadia Bank Loan Information

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