My bank's credit decisions are judgmental. The county we operate in plans to have a huge layoff of staff. We have a loan applicant that works for the County, in a 3-person office. 2 of the 3 individuals that work in the office will be dismissed. The loan applicant is not sure if she will or will not have a job. My question is can the Bank factor in the uncertainty of the applicant's future employment when determining whether they have the capacity to handle the credit obligation?

No. Can't base your decision on whether or not the customer "might not" have a job. That applies to all of us. See that Need to be anonymous thread for something similar.