Finance and Mortgage Broking Management

Assessment cover sheet

For your assessment to be marked you must complete and upload all tasks and this cover sheet via the AAMC Training Group portal. Your assessment tasks may be uploaded in an electronic format, i.e. Word, Excel or PDF, unless specified. A maximum of five (5) attachments (maximum 20MB each) can be uploaded for this assessment. Please see the step-by-step instructions in your Members Area on how to upload assessments.

Student details
Course nameFNS50315 Diploma of Finance and Mortgage Broking Management
Assessment nameLoan Application Process Assessment
Student nameRodrigo Cesar De Araujo Gomes

When you upload your assessment you will be asked to confirm that your assessment submissionto AAMC Training is your own work and NOT the result of plagiarism or excessive collaboration, and that all material used from any third party has been identified and referenced appropriately. AAMC Training may conduct independent evaluation checks and contact your supervisor to discuss your assessment.

Checklist of attachments:

☐ Task 1 – Case Study ☐ A OR ☐ B

☐ Task 2 – Report/Written Test

☐ Task 3 – Report/Written Test

☐ Task 4 – ☐ A (Activity) and ☐ B (Short Answers)

Please indicate style of course undertaken:

☐ Face to face         Trainer’s name:

☐ Correspondence   ☐ Online

Once your assessment has been uploaded it will be pending review with your nominated course assessor and marked within 5-10 working days.  You will receive an email advising you have been marked as “satisfactory” or “additional information required”.

If you have queries relating specifically to your assessment please log an ‘Assessment Query’ under the HELP tab on your Members Area dashboard and a Student Support officer will respond.

Alternatively, if you have an administration query please go to ‘Admin Query’. For example: I am having trouble with uploading my assessments and require assistance – can you please help me with this?

Should you need to speak to someone during office hours, please contact us by:
Phone: +61 (03) 9391 3643 / +61 (0)8 9344 4088  OR  Email: info@aamctraining.edu.au

LOAN APPLICATION PROCESS ASSESSMENT

CREDIT TRANSFER You may be able to claim credit transfer for a unit/s of competency that you have previously completed with AAMC Training or another RTO. If you have been awarded a record of result or statement of attainment for any of the units detailed below then please go to the Credit Transfer tab in your Learning Centre and follow the prompts. This assessment relates to the following units of competency: FNSFMB401 Prepare loan application on behalf of finance or mortgage broking clients;FNSFMB402 Identify client needs for broking servicesFNSFMB403 Present broking options to clientFNSINC402 Develop and maintain in-depth knowledge of products and services used by an organisation or sectorFNSFMB501 Settle applications and loan arrangements in the finance and mortgage broking industryFNSCUS501 Develop and nurture relationships with clients, other professionals and third party referrers.FNSCRD301 Process applications for credit (this unit is only applicable to those completing the Certificate IV in Finance and Mortgage Broking FNS40815 course). Please refer to AAMC Training’s full Recognition Policy for further details.

PLEASE READ THESE IMPORTANT INSTRUCTIONS BEFORE COMMENCING YOUR ASSESSMENT:

Please note articles and resources used in questions below are for the purpose of training only and may be outdated but still acceptable to meet the requirements of the tasks.

In addition to fully reading and understanding the contents of the Learner Guide, you have been provided an FMB Assessment Toolkit. We urge you to fully read and understand both of these resources prior to commencing the following tasks as they will assist you in successfully achieving an understanding of this module and thus a satisfactory result. Most of these tasks are related to the FMB Assessment Toolkit. You will also need to access some of the forms and templates in the Useful Resources section of your Members Area.

  • Your answers to the task questions are to be typed into this document and uploaded.
  • No assessment word count has been specified, although you are expected to provide good quality answers to each of the questions.
  • At the time of going to print the web links in this document were current. If you find a broken link please research yourself and advise AAMC Training of the issue.
  • Although some general discussion between students covering the assessment is allowed your responses to each of the questions must be an individual effort.
  • PLEASE NOTE: AAMC Training only wants to see your own work. Please do not upload parts of the learning guide or instructions on how to complete. When this extra information is uploaded it presents unnecessary work for the assessors and in turn delays our assessment responses.

Task 1: You will notice that there are two options of Case Study within this assessment – the first (A) is more specifically for Mortgage Brokers, the second (B) for brokers in the Plant & Equipment and Motor Vehicle field. Please complete only the stream relevant to you and indicate this on the assessment cover sheet.

Either the Mortgage Finance or Motor Vehicle Equipment Checklist must be submitted with the fully completed assessment. This must encompass all documents from initial contact with the clients through to settlement of the loan. Documents must be submitted in a suitable logical order as listed on the checklists and consist of all relevant NCCP documents.

The documentation required should be consistent for all submissions, however student submissions will vary in regards to outcomes based on the interpretation of the data and “client” responses during the interview process.

As you are aware, our learning centre allows for 5 uploads per assessment (max 20MB per file). As there are many attachments required for this assessment, you may wish to embed documents as a way of minimising document uploads. Please see instructions on how to do this if you are not familiar with this practice.

Task 1: Case Study – Loan application preparation

You will notice that there are two options of Case Study within this assessment – the first (A) is more specifically for Mortgage Brokers, the second (B) for brokers in the Plant & Equipment and Motor Vehicle field. Please complete only the stream relevant to you and indicate this on the assessment cover sheet.

Choosing one of the case studies presented below, prepare a loan file from contact with the clients to preparing the loan application for lodgement with the client’s lender of choice.

In completing this task, you need to demonstrate to your assessor that you are competent in the following areas and able to:

  • communicate ideas and information
  • collect, analyse and organise information
  • plan and organise activities
  • work with others in a team
  • use mathematical ideas and techniques
  • solve problems by providing solutions
  • use technology.

To do this you will need to compile a report (Client Needs Review/Fact Find) indicating your thoughts and processes on different aspects of your application. These may include, but are not limited to:

  • the choice of loan product for your client and the information about the loan product that you presented to them. Where you located the product information. Remember there is no right/wrong answer to this area, it is always subjective.
  • the use of technology to compare the product/fees, find information on the products etc.
  • how you would work in a team situation with your co-workers, lenders, real estate agents, mentor etc.

In areas where you do not have copies of actual supporting documentation, insert a page with the name of the document you would include e.g. copy of driver’s licence for the client.

There are a number of templates in the Member’s Area under ‘Useful Resources’ that you could use in your submission.

Remember there is no right or wrong answer as each client you see presents a new challenge and if you can provide solutions for those challenges you will be well regarded and successful in this industry.

Because this course is taken nationally, we ask that you localise addresses and places of employment so that you can have familiarity with the assessment.

You will have to take into account any necessary adjustment of stamp duty concessions for first home buyers. This will have to be considered when discussing and setting out the fees and costs with your clients. You will have to contact your Office of State Revenue to determine the correct amount of benefits to which your clients are entitled.

Case study A             (Residential mortgage)

BACKGROUND

Mark Armstrong, a friend from the local tennis club, has suggested you contact a couple known to him (the Hendersons) who are seeking their first home loan. They have been renting and wish to establish some permanency by purchasing a block and building a home. A referral agreement with Mark has been completed in compliance with regulations.

Currently the family is renting in a suburb near you and paying $475 per week in rent to the local Ray White real estate office. Due to diligent saving after very heavy previous medical expenses for their son Michael, they find themselves in a satisfactory financial position.
They have purchased a block of land within reasonable distance from the high school and are negotiating with a builder.

APPLICANT DETAILS
Alan Jacob Henderson of 17 Capital Court, In a suburb near you. (4 years)
DOB04.01.1982
EMPLOYMENTMarketing Manager – National Clients
EMPLOYERHi-Temp Gas
ADDRESS21 Alwyn Street, In your City
CONTACTTel: (H)  91000000   (B)  87643210  (M) 0419999999
Facs: 91000001
Email: hendo@hitemp.com.au
Website: www.hitempgas.com.au
PERIOD6 YEARS 
GROSS INCOME$111,000 p.a
MOTOR VEHICLEFully maintained
Cheryl Ann Henderson of 17 Capital Court, In a suburb near you. (4 years)
DOB07.03.1981
EMPLOYMENTLaw Clerk
EMPLOYERSmith, Smith and Smith
ADDRESS Suite 14, 12 Flinders Street, In your City
CONTACTTel: (H)91000000 (B)  65432101  (M) 0416667901
Facs: 03 10000001
Email: cherylann@smithys.com.au
Website: www.smithslegal.com.au
PERIOD6 YEARS
GROSS INCOME$65,000 p.a.
OTHER DETAILS
DEPENDENTSJennifer Ann Henderson     DOB 07.03.2004
Michael Alan Henderson     DOB 07.03.2004
NEAREST RELATIVE NOT LIVING WITH APPLICANTJohn Joseph Henderson (Brother) 108 Budburst Ave, In a suburb near you
0410000000
BANK DETAILSNAB – BSB: 001 002   A/c Number: 1234567
REAL ESTATE AGENTFlying High Estate Agents 4 Birdsnest Avenue, In a suburb near you.  CONTACT: Hugh Talon
Tel: 10000700  Facs: 10000080
Email: hught@gmail.com
BULDERHomes Plus More (Master Builders) 38 Archdeacon Street West, In a suburb near you. CONTACT: Grace Love Tel: 40000000  Facs: 40000003 Email: grace@hpm.com.au
CONVEYANCING FIRMLightning Settlements  Suite 3, 4 Business Ave, In a suburb near you. CONTACT:  Louise  Stratton Tel: 10004000  Facs: 10005000 Email: lulu@lightningsetts.com.au
PROPOSED ADDRESSLot 47 Eaglehawk Circle, In a suburb near you.
LAND DESCRIPTIONLot 47 on Plan of Subdivision 731680Z PARENT TITLE Volume 11580 Folio 996 Created by instrument PS725680G 04.04.2018
VENDORInspired Developments Pty Ltd Suite 114/ 100 Bridge Road, In a suburb near you. Tel: 50000001  Facs: 50000002 Email: Info @inspired.com.au
SETTLEMENT DATE 14/00/20XX

When completing your Fact Find/ Client Needs review please remember the Duty of Care.
One of the most important questions you should ask is about Risk Protection. Have the clients considered the ramifications of financial hardship caused by illness, accident or death?
The Q & A component of the CNR covers this adequately. You are made aware their contents are insured but they have no insurance policies covering life, trauma and income protection. This is where you ask what cover they consider is enough in view of the financial commitments they are now planning?  Will Cheryl have to visit Centrelink if an unforeseen event happens to Alan and vice versa? Should they have to change their lifestyle? Not if the Broker carries out all the requirements to provide the clients’ needs.

CASE STUDY ASSESSMENT OPTIONS:

  1. If you are in a State or Territory that FHOGs are available to both forms of home purchasing, choose a new home acquisition (Block ‘n’ Build) option for your case study (you do not have to complete one of each).
  2. If at some later stage the FHOGs rise or fall, please adjust the applicable purchase prices to cater for those changes as this task forms an important part of the assessment process and must be completed.
  3. Students in all jurisdictions will have to adjust the land and construction costs to fit in the capped amount criteria.

SCENARIO:

The Hendersons:

  • signed a contract of sale subject to finance for three (3) weeks
  • have $110K in a savings account
  • are eligible for FHOG (don’t forget to add the FHOG amount to their funds to complete and remember to make up a maiden name for the female applicant)
  • paid a $24K deposit (from the $110K in the savings account) on the $240K block of land
  • estimate construction costs will be in the vicinity of $350-360K
  • estimate they will spend an additional $32K on new furniture and curtains
  • wish to use $78K of their savings as equity/deposit
  • pay off their credit cards in full every month.

You are to interview the clients and propose a loan structure that will suit their needs. They have indicated that they would like to be provided a minimum of three (3) sound lending strategies acceptable with different providers. 

The above are points of discussion that should appear in your interview notes to ensure that what you are proposing is not unsuitable for the clients for you to address responsible lending.

AAMC TRAINING DOCUMENT CHECKLIST LOAN APPLICATION PROCESS ASSESSMENT MORTGAGE FINANCE Must be completed and included in your uploaded Assessment
EVIDENCE
A fully completed AAMC Training Assessment Cover Sheet
A fully completed AAMC Training Document Checklist (this page)
Case Study – Loan Application Preparation (Task 1) File notes from first contact through to settlement in chronological order
Authorised Credit Representative Credit Guide and Licensee Credit Guide
Privacy Statement and Consent form
Client Needs Review or Fact Find
Combined Credit Quote and Proposal
Product Comparison Report (at least three options)
Preliminary Assessment
Costing sheet for Fees and Charges
Fully completed Lender Loan Application or Copy of Online lodgement
Select a lender of your choice there are some forms in useful resources.
Lender’s loan Document Check List (Normally forms part of loan application)
Select a lender of your choice there are some forms in useful resources.
Process Applications for Credit (Task 2) A completed serviceability calculator (refer to useful resources)
Select a lender of your choice there are some calculators in useful resources.
Loan Comments/Lender Comments. Notes to the lender in support of the application.
Evidence of Income (Pay slips, Employers Letter, PAYG Summaries)
Evidence of an Offer & Acceptance or a Contract of Sale or a Purchase contract
Evidence of Council approved plans (House and land, off the plan packages)
Plus a Fixed Price Building Contract
Evidence of savings/equity and other loan commitments
Evidence of Valuation successfully completed
First Home Owners’ Grant application (These can be downloaded from your local state revenue office)
Anti-Money Laundering/Counter Terrorism Financing ID requirements Note: Two forms of identification are required for each applicant to the loan and a separate AML ID form is required for each applicant.
A Compliance file checklist
Completing Customer File (Task 3) Fully completed Settlement document pack (Refer to the Settlement File Checklist to ensure all relevant documents are completed and submitted)
Create a customer/referrer database (Task 4 A) You are required to prepare and submit your data-base on contacts made from this transaction by using your internal CRM or a suitable program i.e. Excel/Word.
Short Answer Questions (Task 4 B)
Complete and submit all Short Answer questions

NB: Where evidence is required i.e. payslip/offer & acceptance/financials etc., AAMC Training will accept the evidence being typed on a blank piece of paper rather than supplying copies of the required evidence.

For example: “This represents the payslips for Billy Smith for the periods ending 14th and 28th Month 20XX.”

*Samples of the abovementioned forms can be found under Useful Resources of the Utilities tab at your login Dashboard – either in the Loan Application, Complex Lending or Useful Forms folders.

Case study B             (Asset Finance Motor Vehicles)

John and Samantha Brown have decided to upgrade their main vehicle and will give their 1995 Mitsubishi to their son. The Holden ute will still be used by John to travel to work.

They are seeking to fund the full purchase of a Holden Captiva Active 7 seater and have provided an invoice from the dealer.The new vehicle is required to do a lot of country travel and tow a caravan as they intend to take a number of trips.

Mr and Mrs Brown have full time employment and been working for the same companies for over 5 years since moving from interstate.

Mrs Brown is the bookkeeper for FSR Consulting Pty Ltd and is responsible for all invoicing and reporting. Mr Brown works fulltime for Build It Right Carpentry Pty Ltd as a carpenter.

They have also completed a personal statement of position which is enclosed with the documents.

Other information provided:

  • Intend to keep the vehicle for at least 5 years
  • Wish to keep repayments as low as possible
  • Happy to consider a Residual which would be reflective of the value of the vehicle at end of loan
  • Fixed Rates and flexibility important with the loan being sought
  • Have asked for advice on Insurance for the vehicle.
  • Have own superannuation funds but not averse to having them reviewed
  • Both clients are unsure of what personal insurances they have but have made an estimate of coverage
Client statement of position
Referred by:Peter MichaelConsultant:Ian Harris
Date:05/03/2019Source:Accountant- 3 Smith St, Melbourne-
Ph 03 94250000
Applicant 1:Mr/ Mrs/ Ms/ MissApplicant 2:Mr/ Mrs/ Ms/ Miss
Surname:BrownSurname:Brown
First name:JohnFirst name:Samantha
Date of birth:21/10/72Date of birth:13/06/74
Address:1 Bourke StreetAddress:1 Bourke Street
Point Cook VIC 3030Point Cook VIC3030
Phone:03 93850000Phone:03 93850000
Mobile:0417000000Mobile:0418000000
Employer:Build It Right Carpentry Pty LtdBusiness:FSR Consulting Pty Ltd
Occupation:CarpenterOccupation:Office manager
Income-gross/net$78,308   / $61,517.44Income-gross/net$54,086/    $44,961.05
Current lender:WestpacFSR bank detailWestpac 032 000 123456
Estimated market value:$600,000Mortgage balance:$120,000
Payment:$1,197.00Mthly/Fortnightly/Weekly
Years to run:10Interest rate:3.69%
Asset
values
$
Liabilities amount owing $Monthly payments
$
Lender
Existing properties:
1.600,000120,0001,197.00Westpac
Other personal assets: Caravan20,000
Furniture100,000
Motor vehicles:
2002 Holden Ute25,000
Credit card  (1) Limit $50001,000150.00ANZ
                  (2) Limit $100003,000300.00Citibank
Overdraft
Personal Loans:
Superannuation:Mr   160,000
Mrs  80,000
Insurances:    Mr         Mrs
Life: y/n        400,000  300,000700,000
Trauma: y/n   100,000    50,000150,000
Income prot.    61,502   40,564102,066
Wills: y/n
Power of attorney: y/n
Undelivered notices should be returned to: GPO Box 5300
Melbourne VIC3001   Samantha Brown
1 Bourke Street                                                                 Your Tax file number is
Point Cook VIC 3030                                                                        456 XXX XXX Date Issue
3 July 20XX Income Tax Assessment Act 1936
NOTICE OF ASSESSMENT
For the year ended 30 June 20XX (or substituted accounting period) Your Taxable Income is $54,086                                                     $ Tax on Taxable Income                                            A                 9124.95DR Medicare Levy                                                        O                1081.72DR   PAYG withholding credits                                          E                1020.20CR Tax Offsets and other credits                                    G                484.00 CR Balance of this assessment                                       L                3523.43CR A refund cheque for this amount is below   **************************Additional information*************************** Tax offsets and Other Credits include $20.00 Franking tax offset.   PLEASE SEE THE REVERSE FOR IMPORTANT INFORMATION ABOUT YOUR ASSESSMENT.   S.C. Ashmore-Smith
Deputy Commissioner of Taxation
Sydney Office, Sydney NSW

Undelivered notices should be returned to: GPO Box 5300
Melbourne VIC3001   John Brown
1 Bourke Street                                                                 Your Tax file number is
Point Cook VIC 3030                                                                        456 XXX XXX Date Issue
3 July 20XX       Income Tax Assessment Act 1936
            NOTICE OF ASSESSMENT             For the year ended 30 June 20XX (or substituted accounting period) Your Taxable Income is $78,308                                                     $ Tax on Taxable Income                                            A               16790.56DR Medicare Levy                                                        O                1566.16DR   PAYG withholding credits                                          E                     0.00CR Tax Offsets and other credits                                    G                  340.00CR Balance of this assessment                                       L                1234.00CR A refund cheque for this amount is below   **************************Additional information*************************** Tax offsets and Other Credits include $20.00 Franking tax offset.   PLEASE SEE THE REVERSE FOR IMPORTANT INFORMATION ABOUT YOUR ASSESSMENT. S.C. Ashmore-Smith
Deputy Commissioner of Taxation
Sydney Office, Sydney NSW
Burrows Holden


ACN: 009 071 444
ABN: 47 009 071 444
TAX INVOICE
To: John and Samantha BrownFor delivery to: John and Samantha Brown

INVOICE DATEINVOICE/STOCK NONEW/USEDVEHICLE MAKEMODELREGISTRATION NUMBER
17/10/20XX1425361NEWHOLDENCAPTIVA AUTOMATICTBA
ENGINE NUMBERCHASSIS NUMBERCOMPLIANCE DATECOLOURCONTACTORDER NUMBER
QR25230948JNITBNT30A004449120XXTWILIGHTCLINT NESBITTDue on receipt
QUANTITYDESCRIPTIONAMOUNT
1Holden Captiva Window Tint Genuine Tow Bar Dash Mat Floor mats Rear Cargo Tray Full tank Pre Delivery$34,718.18 450.00 450.00 Included Included 110.00 Included 995.00
Sub Total36,723.18
GST3,672.32
Stamp Duty2,379.00
Registration816.50.00
Total Price$43,563.00
Total amount payable$43563.00
  Make all cheques payable to Fantastic Holden
ABC
ABC Financial Services


ACN: 91 987 987 987
ABN: 04 791 987 987
TAX INVOICE     Date: October 29, 20XX INVOICE 78
To: Macquarie Leasing Pty Ltd
GPO Box 5435CC
Melbourne VIC 3001
DESCRIPTIONAMOUNT
Upfront broking commission $  500.00
Sub Total
GST
Total price
Payments/credits
Balance due$500.00
Make all cheques payable to ABC Financial Services Thank you for your business!

NB: Where evidence is required i.e. payslip/offer & acceptance/financials etc., AAMC Training will accept the evidence being typed on a blank piece of paper rather than supplying copies of the required evidence.

For example:

FSR Consulting Pty Ltd                                                           PAYSLIP

ABN: 11 123 456 789

ACN: 123 456 789

1 King Street, Melbourne VIC 3000

Employee ID: 5245 Bookkeeper

Samantha Brown

1 Bourke Street, Point Cook VIC 3030

Period End: 30/06/20XX                                                                                  Tax Code:

Payments                    Type                                                    Rate                 Hours          Amount

Ordinary Pay                Weekly full time salary                          $27.7364           37.50           $1,040.11

Total ordinary payment                                                                                  37.50           $1,040.11

_____________________________________________________________________________________

Summary                    

Ordinary pay and leave                     $  1,040.11                             Deductions                  $    175.47

Taxable Allowances                          $          0.00                           P.A.Y.E                        $ 9,124.95

Non Taxable Allowances                  $          0.00                           Tax Credit                    $        0.00

Gross pay                                         $   1,040.11                            Net Pay                        $    864.64

Year to date                                      $ 54,086.00                            Benefits                       $        0.00

Leave Balances                                                                              Hours                                175.87

_____________________________________________________________________________________

Direct Credit Details

Samantha Brown                 Westpac Bank Account        BSB 032 000 A/C 123456                    $864.64

Build It Right Carpentry Pty Ltd                                                          PAYSLIP

ABN: 11 123 456 987

ACN: 123 456 987

1 King Street, Laverton VIC 3000

Employee ID

John Brown

1 Bourke Street, Point Cook VIC 3030

Period End: 30/06/20XX                                                           Tax Code:

Payments                    Type                                                    Rate                 Hours          Amount

Ordinary Pay                Weekly full time salary                          $40.157            37.50           $1,505.92

Total ordinary payment                                                                                  37.50           $1,505.92

Summary        

Ordinary pay and leave                     $   1,505.92                            Deductions                  $     322.91

Taxable Allowances                          $          0.00                           P.A.Y.E                        $16,790.56

Non Taxable Allowances                  $          0.00                           Tax Credit                    $         0.00

Gross pay                                         $   1,505.92                            Net Pay                        $  1,183.01

Year to date                                      $ 78,308.00                            Benefits                       $         0.00

Leave Balances                                                                             Hours                                 203.81

Direct Credit Details

John Brown                  Westpac Bank Account     BSB 032 000 A/C 123456                        $1,183.01

AAMC TRAINING DOCUMENT CHECKLIST LOAN APPLICATION PROCESS ASSESSMENT MOTOR VEHICLE & EQUIPMENT Must be completed and included in your uploaded Assessment
EVIDENCE
A fully completed AAMC Training Assessment Cover Sheet
A fully completed AAMC Training Document Checklist (this page)
Case Study – Loan Application Preparation (Task 1) File notes from first contact through to settlement in chronological order
CombinedCredit Guide and Credit Quote
Privacy Statement and Consent form
Client Needs Review or Fact Find
A. Product Comparison Report (at least three options). B. Research Explanation.
Preliminary Assessment
Combined Credit Quote and Proposal
Costing sheet for Fees and Charges
Fully completed Lender Loan Application or Copy of Online lodgement
Notes to lender with details of clients’ background and requirements.
Process Applications for Credit (Task 2) A completed lenders serviceability calculator (refer to useful resources)
A. Evidence of Income (Pay slips, Employers Letter, PAYG Summaries), savings and other lenders loan and credit cards, if applicable.
B. Completed brokerage invoice addressed to lender
C. Dealer invoice
D. Evidence of Motor Vehicle Registration Papers (some lenders require this information).
E. Evidence of Trade-in equity, cash contribution (receipt), if applicable.
Anti Money Laundering/Counter Terrorism Financing ID requirements Note: Two forms of identification is required for each applicant to the loan and a separate AML ID form is required for each applicant.
A Compliance File Checklist
Completed AAMC Training Broker/Customer File checklist ensuring all requirement for PEVC are ticked.
Completing Customer File (Task 3) Fully completed Settlement instruction document pack (Refer to the Settlement File Checklist to ensure all relevant documents are completed and submitted)
Create a customer/referrer database (Task 4A) You are required to prepare and submit your data-base on contacts made from this transaction by using your internal CRM or a suitable program i.e. Excel.
      Short Answer Questions (Task 4B) Complete and submit all Short Answer questions

NB: Where evidence is required i.e. payslip/offer & acceptance/financials etc., AAMC Training will accept the evidence being typed on a blank piece of paper rather than supplying copies of the required evidence.

For example: “This represents the payslips for Billy Smith for the periods ending 14th and 28th Month 20XX.”

*Samples of the abovementioned forms can be found under Useful Resources – Forms, Documents & Templates of the Utilities tab at your login Dashboard – either in the Loan Application, Complex Lending or Useful Forms folders.

Settlement File Checklist

The provision of all the information detailed below will ensure prompt issuance of your qualification. Any omissions will cause AAMC Training to seek the missing data which can prove costly to both parties. You must include this checklist in the submission of your assessment.

DOCUMENTS MORTGAGE (M) AND/OR
PLANT, EQUIPMENT, VEHICLE FINANCE/COMMERCIAL LENDING (PEVC)
TypeData
M/PEVCFile Notes from first contact through to Settlement in chronological order
M/PEVCEvidence of loan approval
M onlyLoan/letter of offer from lender
M/PEVCBorrowers checklist (Document sign-up)
M onlyCorrectly signed home loan contract (including transfer of land and mortgage of land relevant to the State.)
PEVCCorrectly signed Consumer Loan contract for the Lender chosen
M/PEVCInsurance details – Home Certificate of Currency or Motor Vehicle Certificate of Currency
M onlyBorrowers Authority and Instructions
M onlyEvidence of settlement related communications between all parties (Broker, Conveyancer, Lender, Client) e.g. a letter or email showing settlement communications between all parties.
M/PEVCLetter of successful settlement from broker
M/PEVCService questionnaire or relevant example of feedback from client

Samples of the below-mentioned forms can be found under Useful Resources of the Utilities tab at your login Dashboard – either in the Loan Application, Complex Lending or Useful Forms folders.

Financial Services Credit Guide/Credit GuideAlong with the ACR’s profile this guide is handed to the clients at initial interview and it sets out the services that are offered along with the Privacy Policy of that organisation and the complaints procedure.
Authority to Act & Privacy Consent FormThe authority to act allows the finance broker to act on behalf of the client when dealing with the lender and other related parties to loan. The privacy consent form allows the finance broker to store and use relevant client information to assist in the loan application process without breaching privacy laws.  This will most likely be contained in the credit proposal (mentioned below).
Authorised Credit Representative profileThis form is which sets out the Authorised Credit Representative’s profile and authority to act on behalf of a credit licence holder and what products the ACR can introduce to under that authority. At initial interview the clients must be handed a copy. This may be an addendum to the Credit Guide.
Data Collection – Business or Personal Consumer Client Needs Review/fact FindBy using a Client Needs Review/Fact Find you will have all the information required to form an opinion as to what type of loan best suits the clients’ requirements. At the same time you are acting with due diligence in asking the clients questions about their financial security in the event of an unforeseen circumstance that causes financial hardship. You have a legal obligation to yourself and the clients to make them aware of the ramifications of an unexpected illness, accident or even death. By signing a Client Needs Review they can accept your offer of a referral to an insurance professional or alternatively decline your recommendation, thereby you have documentary evidence of your professionalism. You do not have to sell Risk Products but you have complied with the requirements under the Duty of Care by having adopted the above actions.
Costing sheet for fees and chargesEstimate of total fees and charges payable to the financier in relation to applying for the finance will form part of the credit proposal. However the broker may want to complete a cost analysis to determine savings or equity versus costs associated with the purchase and finance. This is not a requirement of the submission but may rather be a process you may want to adopt for purchases.
Interview notesA file copy of your interview notes will go a long way to avoid any adverse opinions from any audit that may be undertaken by any aggregator company or ASIC official. Whilst documents required under NCC such as a fact find/client needs review, preliminary assessment and credit proposal will highlight requirements and recommendations they may cover all conversations/ time lines between the broker and client.
Preliminary AssessmentBased upon your enquiries as to the financial situation, requirements and objectives of your client you are required to conduct a preliminary assessment to determine whether the proposed credit contract/lease is ‘not unsuitable’ for the client. This must be done prior to suggesting the client applies for, or providing assistance applying for a particular credit contract.
Credit Quote and Credit Proposal DocumentsThese forms may be incorporate into the one document. The Credit Quote outlines the maximum fees and charges payable to the credit representative and licensee for credit assistance. Must be provided before credit assistance is provided. The Credit Proposal document outlines the fees, charges and commissions   relating to the particular credit contract or consumer lease and to whom/by whom they are payable.
Statement of Credit/Mortgage Advice

This is the document the client signs giving the Authorised Credit Adviser authority to act on the client’s behalf and also give privacy consent for the personal details to be passed onto the lending institution. It also advises the amount of commission a broker will receive as well as the costs involved in taking out the loan. A copy of this appointment must be given to the client and a copy kept on your file. This document may be a combination of industry known documents as stated above and not required if you have completed credit proposal and credit quote.
Evidence of incomeLenders require documentary evidence of income to support a loan application. Verifying employment may be in the form of two or three consecutively dated payslips plus a PAYG summary that indicates regular overtime or allowances/commissions. A letter or employment contract from the employer will also suffice in the absence of payslips. Other income will require documentary evidence as determined by the lender.
Self-employed/ Commercial clientsA copy of the last two years individual’s and company tax returns/financial statements along with a serviceability assessment for self-employed individual/partner.
Signed statement of assets & liabilities (SOP)This information allows lenders to readily ascertain the financial standing of the applicants.
Cash flow forecastWhen you are arranging funding for the larger type loans, whether it is for plant and equipment or say, a commercial factory unit a Cash Flow Forecast is essential as it will assist the lender in appreciating where the business is headed. But remember it will have no bearing on the lender’s decision-making as it will look only at anecdotal evidence.
ServiceabilityWhen submitting an application you are to include a Serviceability Assessment sheet which shows the lender you have ensured the clients can afford the loan. You will find these assessment tools form part of the lenders’ online broker toolkit and are relatively simple to use. When you undertake your accreditation training each lender will provide the facility or you will have access to all the tools through your aggregator.
Copy of the Offer and Acceptance (WA) or Contract of SaleLenders need a copy of the completed O&A or COS to verify the purpose of the loan and for the ordering of valuations, if required. You will be advised of their requirements when you complete the accreditation courses. It is also worth noting that some lenders will only carry out a kerb-side valuation when the LVR is 80% or less.
First Home Owners Grant applicationWhilst the Federal Government provides the funding for these concessions each State and Territory Government administers the schemes. Therefore so your clients can get the maximum benefits available, your task is to research this area of funding thoroughly by visiting the Office of Revenue in the jurisdiction in which you operate. These forms are to be completed to accompany your case study files.
First Home Buyers Stamp Duty Concession applicationAs explained above there are variances in what concessions are available. However notwithstanding the fact that in some areas solicitors/conveyancers or settlement agents handle this aspect of the transaction, we at AAMC believe it is up to the Broker to ensure that there is a smooth settlement transition. This will happen if the Broker provides the clients with the necessary paperwork, has it completed correctly and keeps it on file for presentation to the correct parties when settlement is due to take place.
Fully completed loan applicationLet us first accept that all lenders require the same information, however with the layout of their application forms it just appears in different places. You are not only expected to provide the clients’ full personal details, but you are obliged to be honest and frank about the information you are submitting. As a Broker you are also obliged to inform either the lender or the client of any information of which you become aware that may have a material effect on the transaction. If you do not follow this principle you could well become the subject of legal action from either party. The application forms are quite simple to complete provided, however, you have gathered all the information to make it a simple task. There is one area on confusion and that is the completion of the “Declaration of Purpose”. By completing this incorrectly you may jeopardise your clients’ rights under the National Consumer Credit Protection ct 2009.
Notes to Lender/Lenders when assessing a loan rely heavily on information provided. They do not have the privilege of sitting down and interviewing the clients. As you have already learnt, Brokers must provide as much information as possible when submitting a loan application, of any nature, to ensure a fair and reasonable decision can be made by the lender. Therefore it is in everybody’s interests to highlight valid points in a Cover Sheet. Shown below this table are two options that tell a tale. Please do not just copy these examples and submit – use your initiative and present a cover sheet along similar lines as we have demonstrated. There will be many and varied reasons why you think an application should be approved so let the lender share your reasons. Don’t make them second guess. If you follow this path, it will stand you in good stead with the lenders and exhibit a standard of professionalism that unfortunately not enough Brokers take seriously. Half measures or the attitude “Close enough is good enough” does not wash in today’s competitive economic climate. Lenders that receive half-baked applications will put them to one side and get on with the fully detailed ones to acknowledge the correct presentation.
Lenders/Broker document checklistAll lenders have a checklist to ensure you have submitted the application correctly with all the supporting documentary evidence. Please ensure this is completed.
Anti Money Laundering/ Counter Terrorism FinancingDue to criminal activities and money laundering you have to provide the necessary identifying documents to support the application. Where you are dealing with a client’s existing lender, note on your cover sheet that you haven’t supplied the information because client is known to the lender. Some lenders carry out their own verification through their branch network.
Business Registration/ Constitution and/or Trust DeedBusiness registration legitimises the authenticity of the applicant. The Constitution and/or Trust Deed reflect the authority of those able to act for and on behalf of the company.
NOTES TO LENDER TEMPLATE This form is for guidance only, you will need to create your own method.   YOUR LETTERHEAD Loan application for XXXXXX & XXXXXXXX
Loan amount $00000000
Latest date for approval ………/………/………… Please find loan attached application for the above clients. OPTIONS Reason for loan They have just arrived in Australia They have moved from interstate due to employment transfer They shared first division in Saturday’s lotto Mum & Dad gifted them $80000 They are upgrading Refinancing to use equity for investment or renovations, holidays or for whatever Divorce – marriage split Downgrading- kids left home Employment Just received promotion Changed jobs for more income and permanency Stable employment Interstate transfer Income Single income is supported by Serviceability Assessment Joint Permanent staff for long period and expecting promotion. RECOMMENDATION We recommend this application in view of the following: Stable employment Stable address Sound financial position Sound income Nothing adverse known Security is in new expanding area   We recommend this application in view of the following:       SIGNED……………………………………………………………       Date…………/…………/………………

Task 2: Report/Written Test
Process Applications for Credit (Mortgage Loans Only)

You are required to demonstrate that you understand the lenders policy and procedures for processing an application for credit, i.e. from the point of view of a lender’s credit analyst. Once your loan application is ready to be submitted you must provide supporting evidence that:

  • You have checked and verified application details including all information to support the application are in accordance with the lenders credit policy and procedures.
  • Your assessment decision to recommend the credit application refers to/is within the lenders policy and procedures.
  • Maintaining application records and completing necessary documentation are according to the lenders legislative requirements and lenders organisational policy and procedures.

Overall, to support your understanding of how an application for credit is processed by the lender, you are required to complete research and provide the following information which is also covered in the learning material:

  • Detailed notes regarding the lender’s organisational approval policy and procedures for the chosen product in your selected case study. Briefly explain why the loan met the policy guidelines and how you researched the product and the guidelines. Including maximum LVR, serviceability ratio, minimum loan etc. If you are unable to access the lenders information readily the alternative is to access the Lender Mortgage Insurers (i.e. Genworth/QBE) guidelines which are readily available on their web pages.
  • Explain the approval guidelines, i.e. who can approve/delegation; timeframes etc.
  • Ensure you adhere to relevant legislation with reference to checking and verifying application/client details and maintaining records, i.e. how file and records are maintained, how movements/milestones are monitored, etc.

Task 3: Report/Written Test – Completing Customer File

You are to submit a fully completed loan application form as well as:

  • A lenders cover sheet detailing the background of the applicants, structure of the loan, loan product applied for, serviceability criteria.
  • Supporting documents for the loan submission as requested by the lender.

Finally as a result of your client interview, completing relevant client documents, and loan application for the lender, you are now required to complete the remainder of customer file supporting several of your obligations and responsibilities as a Finance Broker.  These important steps being the approval process, documentation, settlement and ongoing relationship management. In areas where you do not have copies of actual supporting documentation, insert a page with the name of the document, an explanation of the document and its purpose. For example, you would include: copy of formal/unconditional approval stating conditions of settlement.

There are a number of templates in the Member’s Area under ‘Useful Resources’ that you could use in your submission.

You are required to submit your customer as determined by the chosen case study.  Therefore your file information must contain the following:

  1. Adding to your Interview Notes – Customer Contact Sheet/Record

You should have already documenting regular communication pre your loan submission. These interview notes incorporate all the correspondence from initial contact to loan preparation and submission. You are now required to provide interview notes from loan submission to post loan application process; with all parties specifically including:

–   Customer

–   Bank/s

–   Referrer/s

–   Government bodies, i.e. Stamp Duty, FHOG/ Revs

–   Property Valuators

–   Settlement Agent

  • Advice of Loan Approval

Evidence of communication with customer and other relevant parties regarding:

  • Communication of formal/unconditional approval to customer i.e. lender letter of offer;
  • Letter to client regarding documentation/settlement expectations;
  • Communication with Real Estate Agent, Settlement Agent, etc.
  • Document Sign-Up/Settlement Preparation
  • Document sign-up checklist and covering letter /communication;
  • Correctly signed mortgage documents;
  • Insurance details;
  • Authority to disburse funds;
  • Settlement checklist.
  • Advice of Transaction Completed/Finalised
  • Communication of successful settlement;
  • Letter/survey to client asking for client satisfaction feedback on services/support provided. You may wish to ask for referral to friends and family.

Task 4: A (Activity) and B (Short Answers)
Create a customer/referrer database

  1. The relationships built in Task 1 Case Study were the clients, referrer, settlement agent and real estate agent.

Prepare a database on contacts made from this task by using your internal customer record system or suitable program, i.e. Microsoft Excel spreadsheet. You are required to submit the Excel file (or PDF/screenshot if other software is used), showing your database layout.

  • Additionally, answer the following questions in relation to your database and building/ managing your business contacts:
  • Why is important to build a database of clients/referral sources?

Having a database can help the business find out certain traits of customers, ie. Locations, gender, age etc. This in return will assist greatly in marketing strategies.
Having record of referral sources can give the business the opportunities to reach out to the advocatesin a more structured way.

  • Why is it important to develop professional relationships?

Developing professional relationships assist me to keep up to date with industry information and sharing business ideas.

  • When is it not appropriate to contact a person and why?

During the weekend and after business hours, reason is people are more than likely busy with their life. Clients might get offended and also it jeopardizes the professional image to make contact during non-business hours.

  • Why is it important to have effective interpersonal styles and methods when dealing with clients/referrers? Why is it important to consider special needs, culture, race, religion, origin, demographics?

Effective interpersonal styles and methods/skills can increase productivity in the organisation as communication will be controlled in both formal and informal settings. It assists in strengthening the rapport/relationship.
One needs to understand when dealing with clients, we are dealing with all walks of lives. One thing is common between different culture/race is that people all value respect and respect comes in different forms, for example, being cultural sensitive shows respect to muslim customer when you dont touch/shake the womans hand. When your clients feel that you respect them, they will respect you hence more likely give you the business.

  • Explain why you think it would be important to follow up any business referrers as quickly as possible.

A referral business coming from another business could have been qualified already, this means higher chance for a quick deal. Taking actions quickly can potentially leave the clients a very positive/professional image. It will also keep the good will between businesses going, because you are showing the other business you take them seriously.

  • What methods could you use in developing new business i.e.; advertising and promotion of your services?

Word of mouth, once I start, tell all my friends, colleagues etc. I will also advertise online, set up meeting with accountants, real-estate agents and set up a deal with them.
Referral program where you the person who refers me gets rewarded with something.

Reference no: EM132069492

GET HELP WITH YOUR PAPERS

GET THIS ANSWER FROM EXPERTS NOW

WhatsApp
Hello! Need help with your assignments? We are here
Don`t copy text!