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restrictions required significantly greater downpayments than
competing lenders. While its competitors were lending on an 80-
percent LTV, or as high as 90 to 95 percent with private mortgage
insurance (PMI), Peoples required an LTV ratio of 70 percent.
Although Peoples raised its LTV requirement to 80 percent in
1993, discussed infra, it did not offer any programs using PMI to
lower the borrower's downpayment. Finally, Peoples' $250,000
lending limit required proportionately larger downpayments on
more expensive homes than competitors. With a maximum mortgage
loan of $250,000, any house with a purchase price of more than
$312,500 would require a downpayment greater than 20 percent.
Peoples generally avoided making other types of consumer
loans, such as credit cards, automobile leasing, and automobile
financing. Although it technically offered automobile financing,
Peoples set rates above market because it was not interested in
making automobile loans, due to concerns over whether it had
sufficient personnel to track automobile documentation
(insurance, titles, etc.) and deal with collections. Such
automobile loans as were made were mainly to Peoples' employees.
As of the reporting date, only 2.13 percent of the Peoples
loan portfolio was in commercial and industrial loans, placing
Peoples in the 4th percentile (very low) in comparison to its
peers. Peoples generally did not make commercial loans, had only
one revolving line of credit open, and did not offer letters of
credit. After Mark became president, and before decedent's
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