ASSIGNMENT 1
Task
Using the information contained in the Scenario below, please complete the following 6 tasks. You must complete each task for your submission to be assessed. Omission of any of these 6 tasks will be regarded as ‘Working Towards Competency' and you will then be required to resubmit in full.
1. Complete the Fact Find document on these clients - using the form in Appendix 14.
- We have not included all supplementary information on these clients so you will need to create your own "improvised" answers for inclusion in the Fact Find document.
Trainees who already have access to their own version of a Fact Find template may use their own form as an alternative to that provided in Appendix 14.
2. Recommend a product for the clients and explain your reasons for recommendation
3. List the supporting documents that would be needed to support the loan
4. Complete loan costing sheet *
5. Complete a loan servicing calculation (NSR) *
6. Complete a loan application form (an ANZ loan application form has been provided for you, which you must use) and complete all of the accompanying documents as provided for you. Your answer to this Activity should be prepared as if you were submitting a real full loan application to the lender.
Please note: If there is information required on the ANZ application form that is not supplied, please improvise. The application should be completed as neatly as possible to ensure ease of review. It is to be submitted to NFI as if NFI is the lender and you were an accredited broker (but you do not need to make up "dummy" supporting documents eg. rates notice, etc.). If you do not submit in a professional manner, your assessment will not be marked.
* The fees and charges required in order to complete this assignment correctly (ie. Estimate of Costs worksheet) can be found in Unit 7 (use your own state-specific section at the back of Unit
7) and the instructions for how to complete the NSR form are in Unit 8. A Lenders Mortgage Insurance Chart (for your LMI calculation if applicable) is found in Unit 7. Trainees should ensure they source their fees and charges from these units. There are also sample documents to follow in Units 7 and 8.
1. Complete the Fact Find provided in Appendix 14 or your own company's Fact Find document (and improvise any information that has not been provided in the scenario).
2. Recommend a product for the clients and explain your reasons for the recommendation
3. List the supporting documents that would be needed to support this loan application. Even though there is a checklist in the lender's application form, you must list the documents separately below.
4. Complete the loan costing sheet belowEstimate of Costs Worksheet - Purchase/Refinance
Client/s Name: Owner Occupier:
• Yes • No Lender (if chosen): Estimated Costs:
Lender's Loan Establishment/Application Costs $
Valuation cost (if not included above) $
Property Transfer Stamp Duty $ Solicitor/Settlement Agent/Conveyancing Charge $ Registration of new Mortgage $
Register of Transfer of Title $
Title Search $
Discharge of old Mortgage $
Old Lender's Settlement fee $ Miscellaneous Costs (if applicable):
- Other ...................................................... $
- Other ......................................................... $
- Other ......................................................... $ SUB TOTAL $
Lenders Mortgage Insurance (if applicable) $
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TOTAL COSTS $
Summary
Purchase price (if applicable) $
Current Loan Amount/s $ Plus 2 months interest on Current Loan (ie. 2 x monthly repayment) $ Plus Total Costs (from above) $
Plus Total Other Debt Consolidations (if applicable) $
Equals Total Funds Required $
LVR: Total Funds Required $ ÷ Client's Total Security Value $ Equals LVR %
5. Complete the loan servicing calculation (NSR) by completing the form overleaf.
TIP: Remember this NSR calculation is based on 2 security properties, but you use only one NSR form. You should calculate your loan repayments based on the qualifying rate. Even though the clients have requested Interest Only for their investment property, your loan repayment calculations in this NSR form should be calculated at Principal and Interest over 30 years.
6. Complete the lender's application form (a blank ANZ loan application form has been provided for you) and the other documents as provided for you. Your answer to this Activity should be prepared as if you were submitting a real full loan application to the lender. Remember you must treat this as a cross-collateralised loan structure.
Please note: If there is information required on the application that is not supplied please improvise. The application should be completed as neatly as possible to ensure ease of review. Tax charts, an LMI table and sundry forms can be found in your course content. You do not need to create any "dummy" supporting documents (eg. documents that your client would typically provide to you in a real submission, eg. rates notices), just ensure you list them where required.
For this question you must include the following 5 completed forms (all have been provided for you):
- Lending Checklist
- Summary of product choice
- Privacy Act, Disclosure and Consent
- Loan Application Cover Sheet
- ANZ Application form
TIPS:
- Use the LMI table provided in Unit 7 to calculate your LMI and don't forget LMI stamp duty.
- Page 6 of the ANZ form is where you show your split facility structure
- On page 9 of the ANZ form Assets and Liabilities should be shown as current / pre- settlement but Income and Expenses are to be shown as proposed / post settlement
Attachment:- Assignment.rar