files.transtutors.com · Web viewClinton and Jennifer Andrews live in Sydney with their two school-age children. They bought their home 15 years ago. With the rise in its value

Assignment Certificate IV in Finance and Mortgage Broking

(CIVMB_AS_v3A3)

Student identification (student to complete)Please complete the fields shaded grey.

Student number

Assignment result (assessor to complete)Result — first submission (Details for each activity are shown in the table below)

Parts that must be resubmitted:

Result — resubmission (if applicable)

CIVMB_AS_v3A3

Result summary (assessor to complete)First submission Resubmission (if required)

Secti

on 1

: Cas

e st

udy

1 —

Cl

into

n an

d Je

nnife

r And

rew

s

Task 1 — Initial disclosures Not yet demonstrated Not yet demonstrated

Task 2 — Gathering and documenting client information Not yet demonstrated Not yet demonstrated

Task 3 — Assessing the clients’ situation Not yet demonstrated Not yet demonstrated

Task 4 — Using equity Not yet demonstrated Not yet demonstrated

Task 5 — Reasonable enquiries Not yet demonstrated Not yet demonstrated

Task 6 — Recommendations Not yet demonstrated Not yet demonstrated

Task 7 — Clinton and Jennifer’s professional network Not yet demonstrated Not yet demonstrated

Task 8 — Interest rates Not yet demonstrated Not yet demonstrated

Task 9 — Settlement Not yet demonstrated Not yet demonstrated

Secti

on 2

: Cas

e st

udy

2 —

To

ny a

nd L

orra

ine

Dent

on

Task 10 — Establishing level of financial knowledge Not yet demonstrated Not yet demonstrated

Task 11 — Responsible lending obligations Not yet demonstrated Not yet demonstrated

Task 12 — Self Employed special considerations Not yet demonstrated Not yet demonstrated

Task 13 — Advising on strategies Not yet demonstrated Not yet demonstrated

Task 14 — Impact of credit history Not yet demonstrated Not yet demonstrated

Task 15 — External dispute resolution Not yet demonstrated Not yet demonstrated

Task 16 — Effective access to files Not yet demonstrated Not yet demonstrated

Feedback (assessor to complete)[insert assessor feedback]

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Before you beginRead everything in this document before you start your assignment for Certificate IV in Finance and Mortgage Broking (CIVMB_AS_v3A3).

About this documentThis document includes the following parts:• Part 1: Instructions for completing and submitting this assignment• Section 1: Case study 1 — Clinton and Jennifer Andrews

– Task 1 — Initial disclosures– Task 2 — Gathering and documenting client information– Task 3 — Assessing the clients’ situation– Task 4 — Using equity– Task 5 — Reasonable enquiries– Task 6 — Recommendations– Task 7 — Clinton and Jennifer’s professional network– Task 8 — Interest rates– Task 9 — Settlement

• Section 2: Case study 2 — Tony and Lorraine Denton– Task 10 — Establishing level of financial knowledge– Task 11 — Responsible lending obligations– Task 12 — Self Employed special considerations– Task 13 — Advising on strategies– Task 14 — Impact of credit history– Task 15 — External dispute resolution– Task 16 — Effective access to files

• Appendix 1: Client information collection tool/Fact Finder.• Appendix 2: Serviceability calculator.

How to use the study planWe recommend that you use the study plan for this subject; it will help you manage your time effectively and complete the assignment within your enrolment period. Your study plan is in the KapLearn Certificate IV in Finance and Mortgage Broking (CIVMBv3) subject room.

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Part 1: Instructions for completing and submitting this assignment

Completing the assignment

Saving your workDownload this document to your desktop, type your answers in the spaces provided and save your work regularly.• Use the template provided, as other formats will not be accepted for these assignments. • Name your file as follows: Studentnumber_SubjectCode_Submissionnumber

(e.g. 12345678_CIVMBv3A3_Submission1).• Include your student ID on the first page of the assignment.

Before you submit your work, please do a spell check and proofread your work to ensure that everything is clear and unambiguous.

The assignmentThis assignment is split into 16 Tasks, over 3 Sections. To finish this assignment, you must complete all 16 tasks.

The information and data needed to complete Sections 1 and 2 is presented in case studies at the beginning of those sections.

Word countThe word count shown with each question is indicative only. You will not be penalised for exceeding the suggested word count. Please do not include additional information which is outside the scope of the question.

Additional researchWhen completing the Client Information Collection Tool in Appendix 1, assumptions are permitted, although they must not be in conflict with the information provided in the Case Study.

You may also be required to source additional information from other organisations in the finance industry to find the right products or services to meet your client’s requirements or to calculate any service fees that may be applicable.

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Submitting the assignmentYou must submit the completed assignment in a compatible Microsoft Word document. You need to save and submit this entire document.

Do not delete/remove any sections of the document template.

Do not save your completed assignment as a PDF.

The assignment must be completed before submitting it to Kaplan Professional Education. Incomplete assignments will be returned to you unmarked.

The maximum file size is 5MB. Once you submit your assignment for marking you will be unable to make any further changes to it.

You are able to submit your assignment earlier than the deadline if you are confident you have completed all parts and have prepared a quality submission.

The assignment marking processYou have 26 weeks from the date of your enrolment in this subject to submit your completed assignment.

Should your assignment be deemed ‘not yet competent’ you will be given an additional four (4) weeks to resubmit your assignment.

Your assessor will mark your assignment and return it to you in the Certificate IV in Finance and Mortgage Broking (CIVMBv3) subject room in KapLearn under the ‘Assessment’ tab.

Make a reasonable attemptYou must demonstrate that you have made a reasonable attempt to answer all of the questions in your assignment. Failure to do so will mean that your assignment will not be accepted for marking; therefore you will not receive the benefit of feedback on your submission.

If you do not meet these requirements, you will be notified. You will then have until your submission deadline to submit your completed assignment.

How your assignment is gradedAssignment tasks are used to determine your ‘competence’ in demonstrating the required knowledge and/or skills for each subject. As a result, you will be graded as either competent or not yet competent.

Your assessor will follow the below process when marking your assignment:• Assessing your responses to each question (and sub-parts if applicable) then determining whether you

have demonstrated competence in each question. • Determining if, on a holistic basis, your responses to the questions have demonstrated overall

competence.

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‘Not yet competent’ and resubmissionsShould sections of your assignment be marked as ‘not yet competent’ you will be given an additional opportunity to amend your responses so that you can demonstrate your competency to the required level.

You must address the assessor’s feedback in your amended responses. You only need to amend those sections where the assessor has determined you are ‘not yet competent’.

When making changes to your original submission, use a different text colour for your resubmission. This way, your assessor will be in a better position to gauge the quality and nature of your changes. Ensure you leave your first assessor’s comments in your assignment, so your second assessor can see the instructions that were originally provided for you. Do not change any comments made by a Kaplan assessor.

We are here to helpIf you have any questions about this assignment you can post your query at the ‘Ask your Tutor’ forum in your subject room.

Before you submit your assignment

If you have any queries about the assignment questions, please use the ‘Ask your Tutor’ forum in your subject room. You can expect an answer from your Tutor within 24 hours of posting your question.

Remember, your online tutor cannot preview or check your assignment answers, or provide specific answer guidance. Please ensure that your questions are about clarification of the intent of an assignment question.

After your assignment has been assessed

If you have questions about your assessor’s feedback, please email: <[email protected]> and include a copy of your assessed assignment. Never post your assignment answers or assessor comments in the ‘Ask Your Tutor’ forum.

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mailto:[email protected]

Section 1: Case study 1 — Clinton and Jennifer Andrews

BackgroundClinton and Jennifer Andrews live in Sydney with their two school-age children. They bought their home 15 years ago. With the rise in its value over time they have generated substantial equity and have decided to purchase an investment property. Recently they went to a real estate seminar where the presenter explained that it is possible with correct leverage to purchase more than one investment property. Consequently, they have decided to borrow 90% LVR on the investment property plus the LMI. The deposit, stamp duties and other costs will come from their ‘offset account’ attached to their home loan. They have requested not to use their current lender.

After conducting research over the last six months they have decided to purchase a new four-bedroom home in outer Brisbane for $450,000 with a rental income of $450.00 per week.

The real estate agent has recommended they contact you to arrange their finance. Their accountant has been providing some advice in relation to negative gearing benefits.

The following tables are a summary of the details obtained from the couple during the fact find interview. The details provided include a description of the property they wish to purchase, their financial and employment details and the loan features that they require.

The investment propertyAddress: 29 Pacific Drive, Ipswich, Queensland 4305

Purchase price: $450,000

Description: 4-bedroom brick veneer home

Rent: $450.00 per week

Agent details: Rain and Hall

Phone: 07 9322 1113

Mobile: 0412 880 088

The borrower’s home addressCurrent address: 17 Moss Ave, East Hills, NSW 2213

Description: 5-bedroom full brick home

Value: $850,000

Mortgage: $190,000

Monthly repayment: $1,020.00 per month

Home phone: 02 6051 2121

Clients’ view of funding requirementsPurchase price: $450,000

Estimated costs: $20,000

Total required: $470,000

Loan: $405,000 + LMI

Own contribution: $65,000

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AssetsBig Bank offset savings account (joint) $180,000

Little Bank fixed term account (joint) $10,000

Ford Falcon G6, 8 years old (Clinton) $15,000

Holden Barina, 10 years old (Jennifer) $5,000

Superannuation — MPA Insurance (Clinton) $82,000

Superannuation — CLM Insurance (Jennifer) $54,000

Household effects (insured value) $80,000

LiabilitiesBig Bank standard home loan (Joint) (P&I repayment, variable, no fees)

5.0% $190,000 (repayments $1,020 p.m.)

Big Bank Visa card (Clinton) 18.5% $800 (limit $5,000) (clears monthly)

Little Bank Visa card (Jennifer) 12.9% $1,200 (limit $3,000) (pays $500 per month)

All debts have been repaid according to arrangements. In relation to the credit card debt, the minimum monthly commitment for servicing purposes should be calculated at 3% of the credit limit.

Income/employment

Clinton (date of birth 24/5/84)Position: Project Manager (full time)

Employer: ACM Construction

10 Wide Rd, Ryde, NSW

Phone: 02 7061 2111

Income (gross): $85,000 p.a., gross monthly income of $7,083, net monthly income of $5,476

Employer contact: Kelly Williams, HR Manager

Length of service: 16 years

Driver’s licence: 8869KL

Email: [email protected]

Jennifer (date of birth 8/10/87)Position: Accounts Assistant (full time)

Employer: Pretty Clothing Pty Ltd

80 High Street, Penrith, NSW

Phone: 02 9940 3677

Income (gross): $74,000 p.a., gross monthly income of $6,166, net monthly income of $4,837

Employer contact: Joan Collins, HR Manager

Length of service: 7 years

Driver’s licence: 2897HT

Email: [email protected]

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Interest income

Approximately $30 per month from the $10,000 term deposit, interest of 3.5% p.a.

Expenditure

Monthly expenditure for living expenses — $3,200.

Solicitor’s detailsJackson & Williams28 West Street, Yagoona, NSW

Phone: 02 9283 1365Fax: 02 9283 1802

Note: The solicitor has quoted $1,500 to cover estimates costs.

Proposed loan details• application fee — $600.00 (includes valuation)• 30-year term• principal and interest • residential investment loan • standard variable interest rate of 5.68% (comparison 5.82%), special offer rate of 4.78%

(5.16% comparison) (Note: Clinton & Jennifer will qualify for this special loan offer.)• proposed settlement date — 6 weeks’ time• ability to make additional payments from time to time without penalty• fortnightly repayment option• redraw facility• internet banking.

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Assignment tasks (student to complete)

Task 1 — Initial disclosuresFollowing a personal introduction and before you begin gathering information about the clients’ existing financial situation or needs, there are certain disclosures you are required to make as a finance broker. These disclosures include the way you are remunerated and the range and limitation of your services. 1. There are four (4) documents listed in ASIC Information sheet INFO 146 ‘Responsible lending disclosure

obligations – Overview for credit licensees and representatives’ that must be provided to customers. Refer to this Information sheet and the information contained in your topic notes to answer part (a) and (b) below. (a) Identify which of these four (4) documents you must provide your client before you commence

providing credit assistance and explain the main disclosures relevant to that document. (40 words)

Student response to Task 1: Question 1(a)

Answer here

(b) Identify which of these four documents you will provide the client should you intend to charge a broker fee and explain what is required for it to be valid. (40 words)

Student response to Task 1: Question 1(b)

Answer here

Assessor feedback: Resubmission required?

No

Task 2 — Gathering and documenting client informationComplete the Client Information Collection Tool (located at the end of the assignment in Appendix 1 ) using the information provided in Case Study 1.

Note: Any assumptions you make should be listed and should not be in conflict with the case study information already provided.


No

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Task 3 — Assessing the clients’ situation1. Using the Excel or Online version of the Genworth Serviceability Calculator, calculate the Genworth NDI

for the borrowers. This will require you to enter all the data, including their future rental income. <http://www.genworth.com.au/online-tools-forms-and-reports/lmi-tools/serviceability-calculator>.Once you have completed the calculations, copy the data into the Serviceability Calculator (located at the end of this assignment in Appendix 2 ).Do not upload the Excel spreadsheet as a separate file.


No

2. Based on the information provided in the case study and using the tools available to you (e.g. loan calculators, including those available on lenders’ websites), provide an assessment of the clients’ borrowing ability. Consider and comment on the following issues:(a) the maximum loan using the Genworth calculator (b) deposit requirements for the loan required(c) combined net monthly income, less cost of living expense as specified by the borrower (d) do they require Lenders Mortgage Insurance (LMI) and if so, how much will it cost?

Refer to Genworth LMI estimator for this figure(e) any other issues that may impact, now or in the future, on the clients’ ability to meet their

obligations, including any possible risks.Provide data to support your comments and conclusions. (No word count requirement for questions (a) to (d)). Question (e) (100 words)


Answer here


Answer here

Student response to Task 3: Question 2(c)

Answer here

Student response to Task 3: Question 2(d)

Answer here

Student response to Task 3: Question 2(e)

Answer here


No

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http://www.genworth.com.au/online-tools-forms-and-reports/lmi-tools/serviceability-calculator

Task 4 — Using equity1. Although Clinton and Jennifer have chosen to borrow 90% LVR on the investment property plus the

LMI costs, what other option could you present that would avoid the cost of LMI? (100 words)

Student response to Task 4: Question 1

Answer here


No

2. Explain how it could be possible for Clinton and Jennifer to borrow 100% of the purchase price ($450,000) and obtain a tax benefit for the interest charged. (100 words)


Answer here


No

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Task 5 — Reasonable enquiriesIn the course of gathering information about the couple, you are required under the National Consumer Credit Protection Act 2009 to make all ‘reasonable’ enquiries to determine a borrower’s objectives, requirements and financial situation.

Identify at least six (6) ‘reasonable’ enquiries that you would make with the clients in the case study and explain why these enquiries are important in terms of NCCP compliance. (200 words)

Student response to Task 5

Answer here


No

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Task 6 — RecommendationsNote: Incorrect or uninformed advice can lead to significant financial detriment for your client and lead to possible complaints against you for misleading or deceptive and misleading conduct. Therefore, all three (3) questions of this task are ‘critical’ and you must demonstrate the required knowledge in each to be deemed competent.

1. Based on the information presented in the case study, prepare a written proposal (letter or email) outlining your proposal to clients. (750 words)The style and language used in the proposal should be appropriate to the case study client’s level of understanding. It should be clear and concise and written in language that is easy to understand, while still remaining professional in its presentation.You may base your response to this part of the assignment either on your knowledge of the products currently offered by your own organisation or on the products offered by a lender you have researched.In your proposal, you should include:• a summary of your understanding of the clients’ needs (this could be an outline summary of their

proposed loan structure)• a summary of their current financial position (use information from the ‘funds to complete’ template

completed in Appendix 1)• the product options you have considered that meet their needs (research two lenders and detail

their loan features; you can use the internet or if working in industry, internal software)• the option you recommend and the reasons for the recommendation — explain how the

recommended product meets the clients’ needs (refer to the case study and explain why you are recommending this lender)

• disclosures applicable to the situation (a summary of likely applicable disclosures is adequate). Include disclosures in the Credit Guide and any conflicts of interest.

Note: List any assumptions you have made about the clients and their situation in order to complete this part of the assignment. There are no rules regarding the format. Please use the format that best suits you. Should you require it, an example of a written proposal format has been provided in topic 3.3. Note that the credit guide in your resources is not a ‘written proposal’.


Answer here


No

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2. (a) Describe the home buyer assistance scheme benefits and stamp duty concessions that are available in your State or Territory, who would be eligible and what would be their benefit? Note: Please identify what State or Territory you are from in your answer.(150 words).


Answer here


No

2. (b) Provide a summary of all additional costs and fees, that the couple should be made aware of. (100 words)Note: When considering your response, you can refer to your completed Appendix 1 which lists fees expected and charges. Apart from known costs, you can estimate other costs (i.e. pest inspection, rate etc.).


Answer here


No

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Task 7 — Clinton and Jennifer’s professional network1. Name three (3) parties Clinton and Jennifer may wish you, as their broker, to keep informed of the

progress of their finance application who are not directly involved in the loan processing? (100 words)


Answer here


No

2. It is important that as a broker you understand the loan application process and how to effectively manage the progress of a loan application. Outline to Clinton and Jennifer the process that will occur from your first meeting through to post settlement. Please present nine (9) steps in the process. (350 words)


Answer here


No

3. Briefly explain why is it important for the broker to remain informed of developments in the lending process despite not being actively involved at every stage? (100 words)


Answer here


No

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Task 8 — Interest ratesClinton and Jennifer have reconsidered the loan proposed and have called in to discuss whether they should consider fixing the interest rate on their proposed loan — they have conflicting opinions and are seeking your guidance. 1. Firstly, they need to understand the role of the RBA with respect to interest rates and why it is necessary

to have these controls. Conduct some research and answer the following;(a) What is the role of the RBA with respect to the movements of interest rates? (b) Why is it important to have these controls and how do they impact mortgage loans in Australia?(c) Are banks obliged to follow the RBA cash rate? Explain the reason for your answer.

(200 words)

Student response to Task 8: Question 1(a)–(c)

Answer here


No

2. Explain to Clinton and Jennifer some of the advantages and disadvantages of fixing a loan. (150 words)


Answer here


No

3. Suggest how Clinton and Jennifer could potentially manage the risks associated with fixing a loan in the event they need to break the fixed loan contract. (100 words)


Answer here


No

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Task 9 — SettlementOutline in detail the steps a Lender should take post-approval in order to document, settle the loan and administer the loan post-settlement. (300 words)


Answer here


No

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Section 2: Case study 2 — Tony and Lorraine Denton

BackgroundTony and Lorraine Denton have a small cleaning business at which they have been working for the last eight years. As it is only the two of them in the business they operate as sole traders.

They have approached you to help restructure their finance, as they are finding the management of their debts a struggle following the loss of one of their major cleaning contracts.

After further questioning, you realise that the situation is more serious than they originally explained; they have missed payments on their mortgage, only pay the minimum on their credit card of 3% each month and the work car they have on lease is expiring. They have a $15,000 residual or balloon payment due and do not have the funds available.

When they lost the major contract and fell behind on the mortgage payments, they spoke to their lender (Popular Credit Union) and accepted a ‘hardship application’. The missing payments have now been corrected by extending the term of their loan. This happened nine (9) months ago and no report was made to the credit agency.

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After reading the case study above and reviewing their funding position below, answer the questions that follow:

Assets23 Watkins Road, Central Park $450,000

Popular Credit Union savings account (joint) $1,200

Little Saving Building Society cheque account (joint) $2,300

Business debtors (unpaid invoices for work) $6,200

Ford Utility, 3 years old (work vehicle) $25,000

Holden Commodore, 7 years old (family car) $15,000

Superannuation — AMB Insurance (Tony) $36,000

Superannuation — AMB Insurance (Lorraine) $24,000

Household effects (insured value) $60,000

LiabilitiesLender Situation Interest rate Monthly repayment Debt

Popular Credit Union (home loan — joint)

Currently up to date though had 3-month extension to contract after hardship application 9 months ago

5.7% $1,567.00 $270,000

Big Bank Visa card (Tony)

Only able to repay 3% per month for last 6 months

18.95% (pays 3% per month)$230.00

$7,600(limit $8,000)

Little Bank Visa card (Lorraine)

Only able to repay 3% per month for last 6 monthsIs over limit by $800

21.5% (pays 3% per month)$90.00

$3,800(limit $3,000)

Hardly Normal Furniture Store

Did not keep to interest free contract and paying debt by instalments

28.50% $380.00 $3,600

Super Car Loan lease 3-year contract expiring next month and need $15,000 to pay residual

n/a $850.00 $15,000(residual)

Cleaning Contract Supplies

Purchase approx. $1,000 per month in supplies, they are behind 1 month

n/a $1,000.00 $1,800

Total $4,117.00 $301,800

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Assignment tasks (student to complete)

Task 10 — Establishing level of financial knowledgeWhat communication skills might you use to confirm Tony and Lorraine’s understanding and knowledge about credit and finance, as well as their current position, including establishing their requirements and objectives with the refinance?

Provide examples of how you would use these skills to establish Tony and Lorraine’s level of financial knowledge.

(150 words)


Answer here


No

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Task 11 — Responsible lending obligationsThe National Consumer Credit Protection Act 2009 imposes ‘responsible lending’ obligations on brokers that must be satisfied by all people arranging loan applications. The primary objective under responsible lending guidelines is that the credit facility offered to the borrower is ‘not unsuitable’ for the borrower, meets their requirements and objectives and will not create substantial hardship.1. How would you define ‘substantial hardship’ (detailed information on this subject is found at RG 209

issued by ASIC)? (150 words)


Answer here


No

2. What are the benefits of debt consolidation for Tony and Lorraine? (100 words)


Answer here


No

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3. Tony and Lorraine have decided to consolidate their debts into one home loan with two splits, one for the existing home loan and a second split for the all other debts. They will not be including the cleaning supplies bill as they pay this in full each month. In the template below provide a new liabilities summary once Tony and Lorraine have completed the debt consolidation including their new monthly repayments.Note: They have chosen ‘New Bank Loan’ who are offering a 4.5% interest rate on a variable, principal and interest loan over 30 years.


Answer here

Lender Interest rate Monthly repayment Debt

Total


No

4. What savings will Tony and Lorraine obtain in monthly repayments?(Include calculation how you determined the savings.)


Answer here


No

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Task 12 — Self Employed special considerations1. As Tony and Lorraine are self-employed, what documents will you need to obtain and assess their

income? (150 words)


Answer here


No

2. If a Low Doc application is an option for the customer, name three (3) extra documents you will need to obtain and assess. Explain how each these documents will establish their income? (150 words)


Answer here


No

3. Explain how applying for a ‘Low Doc Loan’ could lead the mortgage broker to be accused of recommending an ‘unsuitable’ product. (250 words)


Answer here


No

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Task 13 — Advising on strategiesFollowing the presentation of your proposal, Tony and Lorraine say that they would like your advice regarding loan and debt management strategy tools that are available to help them to pay down their home loan as quickly as possible.

List strategies or methods that will help them achieve their aim.

Note to students: You may refer to the MoneySmart website for information on this subject and your answer may also include available mobile phone apps used for debt management.

Provide the advantages and disadvantages of each. (300 words)


Answer here


No

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Task 14 — Impact of credit historyTony tells you that his former wife failed to properly meet their unsecured personal loan debt obligations before they separated. Although he eventually repaid the debt he is afraid that this incident may count against him when he applies for a loan. There are a few things Tony can do as he is concerned about his credit rating. What information would you provide in the following two situations?1. Provide Tony with the details of three (3) major credit reporting agencies and explain what information

may be recorded on his credit file. (Information can be sourced from the websites of credit reporting agencies and <http://www.oaic.gov.au>.) (200 words)


Answer here


No

2. Tony has decided he would like to obtain a copy of his credit report from either Veda or Dun & Bradstreet. Explain what options are available for each provider, how long it takes to obtain a copy, and the associated costs. (100 words)


Answer here


No

3. If there are errors on file, what is the procedure for Tony to follow in order to have these errors rectified? Hint: Refer to the Veda website. (150 words)


Answer here


No

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http://www.veda.com.au/

http://www.oaic.gov.au/

4. What are the Lender’s legal obligations if they decline an application due to the content of the credit agency file? (100 words)


Answer here


No

5. What options are available to Tony and Lorraine in the event that the loan was rejected by the lender you initially proposed due to a credit report (150 words)


Answer here


No

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Task 15 — External dispute resolutionDuring the loan process, Tony is starting to become upset with the time it’s taking to get him an approval. Although you’ve explained that this is because of delays with the lenders processing system due to staff being away, you’re concerned the matter may escalate beyond your control. 1. As a broker it is important to understand the role of the Credit Ombudsman. Explain the function and

role of the Credit and Investment Ombudsman (CIO) in the EDR process. (200 words)

Student response to Task 15 Question 1

Answer here


No

2. What could be the maximum financial compensation limit imposed by the CIO?(You can obtain this information on the CIO website.) (10 words)

Student response to Task 15 Question 2

Answer here


No

Page 28 of 46

Task 16 — Effective access to filesThe loan application is finally approved. Loan offers have been produced by the lender, as have numerous documents that the client needs to access and review. The lender has requested these documents be forwarded as soon as they are available. Tony and Lorraine are away at the moment and their email provider has a size limit on the data that can be sent via email. Name a service provider that could assist in solving this problem? (100 words)


Answer here


No

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Appendix 1: Client information collection tool/ Fact Finder

Appointment date:

Appointment time:

Applicant 1 Applicant 2

Surname

Other names

Contact details Address

Phone (W)Phone (H)

Mobile

Email

Employment

How long?

Previous employer (if less than 2 years)

How long?

Employment status

PAYG

Self-employed

Gross income (p.a.)

Number of dependants

Motor vehicles

Loan purpose

Purchase price/Valuation

Deposit

Loan amount

Genworth Borrowing capacity (Task 3)

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Assets and liabilitiesAssets Liabilities

Details Market value Details Monthly payments Amount owing

Owner Occupied Property at:

Mortgage with:

Investment Property at: Mortgage with:

Investment Property at: Mortgage with:

Cash at bank(includes fixed deposits)

Car leasing

Other cash(includes offset accounts)

Personal loans

1.2.

Deposit paid on property Overdraft

Motor vehicles:

1.

2.

Other loans:

1.

2.

Personal effects Credit card limit:

$

Business value Credit card limit:

$

Shares and investments Other:

Superannuation Other:

Other assets (give details) Other:

Total assets Total liabilities

Surplus/deficiency: $

Page 31 of 46

CURRENT MONTHLY LIVING EXPENSES (Provide a breakdown of the total amount listed in the case study – use your discretion)

Food/housekeeping

Insurance (e.g. motor vehicles, home contents/ building, medical, life/income protection)

Utilities (e.g. rates, gas, electricity, transport)

Transport (e.g. public transport, petrol, registration, repairs)

Education (e.g. school, college, university)

Dependents support (e.g. childcare, child maintenance)

Entertainment

Other (detail below:

MONTHLY LIVING EXPENSES

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Needs analysis1 Name of your current lender?

2 What type of mortgage loan do you have?

3 Why did you choose this particular loan and lender?

4 What is the interest rate?

5 What are your payments? Amount

6 Frequency

7 Do you know the fees and charges?

8 What is your proposed purpose for the loan you are applying for?

9 Branch access available with current lender

10 Internet banking available with current lender

11 Phone banking available with current lender

12 Lenders not to be considered

13 Type of loan sought

14 Preferred Interest rate range

15 Payment frequency

16 Redraw

17 Offset

18 Salary crediting

19 Low fees and charges

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Notes

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NB: Providing substantive notes is a compulsory part of your assessment.

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Anticipated fees and charges Anticipated purchase price

Deposit

Loan amount

LVR

Purchase costs

Stamp duty on transfer (include transfer fee)

Solicitor/conveyancer (estimate)

Rates and land taxes (estimate)

Pest inspection (estimate)

Building Inspection (estimate)

Borrowing costs

Application/establishment fee

Valuation fee

Security admin fee

Mortgage stamp duty

LMI

Registration of mortgage

Release of mortgage

Search fees

Other

Total of purchase costs

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Funds to completePURCHASE AND LOAN COSTS: AVAILABLE FUNDS:

Purchase price: Deposit paid

Lender application / valuation fees: Cash savings:

Transfer stamp duty Sale proceeds:

Legal and registration fees: Gift:

FHOG:

Other:

LMI: 1. 2. No Add to Loan?

TOTAL COSTS (A): TOTAL OWN FUNDS (D):

LOAN AMOUNT REQUESTED (B): OWN FUNDS REQUIRED (A-B) = C:

OWN FUNDS REQUIRED (A-B) = C SURPLUS/SHORTFALL (D-C)

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Loan interview diaryName(s) of client(s) present at interview

Date of interview:

Location of interview

Indicate all clients who were interviewed in person

Do all of the clients appear to clearly understand English? Y/N

If not, have the services of an interpreter been recommended? Y/N

Do all of the clients clearly benefit from taking out this loan? Y/N

If not, what inquiries have been made to ascertain the level of benefit to each party of the loan?

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Are any clients acting as though they are under duress or other disability? Y/N

Are any clients acting as though they are unsure of anything about the loan? Y/N

Are any of the clients acting as though they are unable to comprehend their obligations? Y/N

Are there any guarantors? Y/N

If yes is answered to any of the above questions, have the clients been advised to seekthe services of a lawyer or financial adviser? Y/N

Provide details of other pertinent information obtained during the loan interview which may be of interest or of any unusual circumstances you may wish to record.

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Appendix 2: Serviceability calculator

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Loan detailsLoan amount $ Security value $

Loan term (in months) Actual rate

Repayment type Select repayment type Interest only period (in years) Interest-only period

LVR

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Applicant detailsApplicant type Select applicant type

No. of applicants (maximum 6) No. of applicants

Applicant 1Applicant name Joint with applicant… Joint with…

Marital status Select marital status No. of dependents

Residential suburb Residential postcode

PAYG

Select income type

Base income $ Base income frequency Select frequency

Self-emplyed/sole trader/partnershipCurrent year Previous year

Net profit (loss) before tax (NPBT)

Interest

Other add-backs

Depreciation

Variable income calculationIncome type Select income type

Frequency Select frequency Amount

Rental income calculationRental type Select rental type Amount $

Frequency Select frequency Ownership (%)

Amount of investment loan $ Amount of interest add-back $

Total rental income $

Non-taxable income calculationNon-taxable income $

Applicant 1: Total net income $

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Applicant 2Applicant name Joint with applicant… Joint with…

Marital status Select marital status No. of dependents

Residential suburb Residential postcode

PAYG

Select income type

Base income $ Base income frequency Select frequency

Self-emplyed/sole trader/partnershipCurrent year Previous year

Net profit (loss) before tax (NPBT)

Interest

Other add-backs

Depreciation

Variable income calculationIncome type Select income type

Frequency Select frequency Amount

Rental income calculationRental type Select rental type Amount $

Frequency Select frequency Ownership (%)

Amount of investment loan $ Amount of interest add-back $

Total rental income $

Non-taxable income calculationNon-taxable income $

Applicant 2: Total net income $

Total net income for all applicants $

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CommitmentsActual living costs $ HEM living costs $

Total credit card limits $ Commitments (maximum 8) No. of commitments

Commitment type Amount Frequency Limit/scheduled balance (plus redraw)

Commtiment 1 Commitment type $ Select frequency








Total commitments $

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Serviceability calculationsNDI ratio Net disposable income $

Assessment rate Monthly repayment $

Maximum loan amount $

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Actual rate serviceability calculationsNDI ratio Monthly repayment $

Actual interest rate Maximum loan amount $

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files.transtutors.com · Web viewClinton and Jennifer Andrews live in Sydney with their two school-age children. They bought their home 15 years ago. With the rise in its value

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