Mortgage Application Analysis & Review

This assignment presents a detailed mortgage loan application for John James Dowell and Mary Jane Dowell seeking a $685,000 mortgage to buy a newly built two-bedroom house. The document includes personal information, employment details, financial assets, and a lender's recommendation based on the applicant's eligibility and LVR. The assignment requires careful analysis of the application and its components to understand the mortgage process and lending criteria.

FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT
© Copyright 2015, The National Finance V
The following
forms
should be used for Assignment 1 –
Question 6.
When completing the Loan Application Cover Sheet,
trainees with an existing company/employer are
permitted to follow the Cover Sheet format specified by
their company/employer.
For trainees who do not have an existing
company/employer cover sheet template available, please
use the Loan Application Cover Sheet provided in this
group of forms.

FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT
© Copyright 2015, The National Finance V
Lending
Checklist
The following list can be used as your Checklist of necessary documentation. Brokers may care to
develop a simpler form from some of the headings below to fax or email to their clients to collect
information. Other documentation may be required by some lenders, based on unusual circumstances by
the applicant.
Yes No N/A
1. This Loan Summary Checklist
√
2. Loan Submission (commission breakdown etc.)
√
3. NSR Serviceability worksheet
√
4. Loan Application Form
√
5. Privacy Act Consent Form
√
6. Declaration of Purpose
√
7. Joint Nomination Form
√
8. Loan Interview Diary Note
√
9. 100 Point ID Checklist
√
10. Acknowledgement and Disclosure Form
√
11. Evidence of Income
√
A. PAYG Income Documentation (minimum 2 forms)
EITHER 3 Pay Slips covering the 3 preceding months, with one being within the
past four weeks preferably confirming at least three months YTD (consistent with
annual income), OR
√
 Last 2 years’ Tax Return accompanied by an ATO Assessment Notice, OR
 Group Certificates / PAYG Payment Summary (not handwritten), OR
 PAYG Payment Summary (if handwritten) accompanied by an ATO assessment
Notice
√
Signed and dated letter from employer on employer’s letterhead with ACN/ABN
confirming full or part-time employment and annual gross income
√
B. Self Employed
Proof of ABN where required for the minimum term
Applicant’s last 2 years personal tax returns and ATO Assessment Notice
Business’ last 2 years Tax return and Full Financial Statements (when required)
Continued Overleaf …

FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT
© Copyright 2015, The National Finance V
Supplementary documentation Yes No NA
12. Are TFNs removed from all financial documentation?
13. Copy of valuation / valuation request LVR 80
%
√
14. Copy of front page of contract of sale
√
15. Copy of Offer & Acceptance – purchase / sale
√
16. Title details (lot/folio/etc.), plans/specs and/or building contract for construction
√
17 Evidence of funds to complete (deposit / genuine savings / equity)
√
18 Proof of genuine savings (as above) evidenced by bank statements over
the last 6 months (minimum)
√
19. Is the FHOG forming part of this loan application?
√
20. Copies of most recent 6 months bank statements of all loans refinanced
√
21. Copies of insurance policies ie. current house and contents insurance policy
and any life insurance policies
√
22. Copies of proof of other investments ie. Superannuation statements, share
certificates and/or managed investment statements
√
23. Is suitable documentation held on file to support other
income? (eg. Centrelink/Child support/Dividends/Family Trust
disbursements)
√
24. Has sufficient proof of current rental income been provided by way of Rental
Statements, Valuation, Current Lease Agreements, Tax Returns?
√
25. Council Rates and Water Rates Notices for the property being offered as
security on a refinance
√
26. Additional supporting comments
27. Declaration
The correctness of these documents is the responsibility of the person signing this Lending Checklist
Submitted by:
Signature: Date

FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT
Summary of Product Choice
Detail any comments regarding the home loan products discussed: .Newly built two
bedroom unit located at 2/12 Garden Grove Bankstown NSW 2200, FOR $485,000.
Property never been occupied before.
The house is in good condition and I therefore recommend you consider the house. The price is affordable
compared to your level of income.........................................................................
.............................................................................................................................
..............
PRODUCT SELECTED
Lender: ..........XYZ BROKERAGE
LTD.............................................................
Loan Product NEW BUILT TWO ROOM
UNIT............................................
Loan Amount $685,000......................Loan Term ..30 YEARS........................
If Line of Credit
Interest Type
Cap $……………………………..√ Variable …5.5……..% Fixed ………..% ..….. yrs
Repayment Type rinciple and Interest  Interest only √
Repayment
choice √Monthly $……1,080.. ………..pm  F/nightly $
……………..pf/n
Redraw
Facility
√Yes  No Maximum $……………… Minimum $..………………
Extra Repayments  Yes No
FEES:
√ Comment . ............................................................
Establishment Fee ..........
$35.............................................................. Discharge Fee
............................................................................................... Redraw Fee
............................................................................................... Monthly Fees
............................................................................................... Switching Fee
..........138.80...................................................................... Early Repayment Fee
...............................................................................................
Other Fees ..............................................................................................
This information is indicative only, given in good faith and believed to be correct and
the time of discussion. All information is subject to change and we recommend that
the borrower confirm all details with their chosen lender.
I John James Dowell and Mary Jane Dowell. (client name) acknowledge receipt of this
schedule.

FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT
……………………………………………………………. (client signature)
C…op…
yr0ig6ht/200915/,2T0he1N4a…tio…
na…l Fi…na…nce…In…sti…tut…e
…………….
(date)
V.010715

© Copyright 2015, The National Finance V
FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT
Privacy Act, Disclosure and
Consent
Consent and Acknowledgement by Applicant(s) for Credit and
Guarantors
APPLICANT (S): . John James Dowell and ........ Mary Jane Dowell
...................................................... GUARANTOR (S): ....... EUNICE WHITE.........and EVANS
GOLD................................................................................. MORTGAGE SERVICER: .........XYZ BROKERERS
LTD................................................................................................... ............. CREDIT PROVIDER: ...... XYZ
BROKERS LTD........................................................................................................... MORTGAGE INSURER:
............................................................................................................................. .............................
The above organisations collect personal information from or about the Applicant(s) and Guarantor(s) (“the personal
information”) to: access an application for credit by the Applicant(s) or a proposal by the Guarantor(s) to guarantee or
provide security; and if an application is successful to provide and administer the provision of credit to the Applicant(s) and
obtain a guarantee
In the case of the Mortgage Insurer: Assess the risk of providing lenders’ mortgage insurance in respect of credit which may be provided by PLC
to the
Applicant(s) (including the risk of the Guarantor(s) being unable to meet a liability that might arise under a
guarantee); and If insurance is provided, to administer or vary any lender’s mortgage cover provided; and risk assessment and management, involving credit scoring and portfolio analysis; and comply with legislative and regulatory requirement.
In order to do those things the Mortgage Servicer and/or the Mortgage Insurer may need to disclose the personal
information to: the organisations and persons described in paragraphs 1 to 9 below; each other and to the related companies of each; organisations that carry out functions (on behalf of each and any of them) (such as trust managers,
introducers, mailing
houses, IT service providers, valuers, lawyers and other external advisers, conveyancers and collection
agents); re-insurers;
credit reporting agencies; referees, including Applicant(s) and Guarantor(s) employer or legal and
financial advisers;
government and other regulatory bodies, including government agencies which administer land titles or
revenue collection;
ratings agencies; payment system operators; and other financial institutions, sercuriters and credit
providers).
Collection of some of the personal information is required under the Financial Transaction Reports Act. If any part
of the personal information is not provided, it may not be possible to assess an application for credit by the
applicant(s) or an application for lender’s mortgage insurance, and as a consequence the finance requested by the
Applicant may not be provided.
From 21 December 2001, in most cases, individuals can gain access to personal information about them held by the
Mortgage Servicer or the Mortgage Insurer on request.
All enquiries concerning access to personal information should be directed in the first instance to the Mortgage
Servicer.
TYPE OF CREDIT (tick which box
applies) The type of credit I/we have
applied for is:
√ wholly or primarily for a domestic, family or household purpose (“consumer
credit”); or for other purposes (“commercial credit”)
I/we agree that the Mortgage Servicer and the Mortgage Insurer can do any of the following:

© Copyright 2015, The National Finance V
FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT
1. Application for commercial credit
If my/our application is for commercial credit, obtain and use consumer credit information about me/us
from a credit- reporting agency to assess my/our application for commercial credit.
2. Application for consumer credit
If my/our application is for consumer credit, obtain and use commercial credit information about me/us
from a credit- reporting agency to assess my/our application for consumer credit.
3. Collection of overdue payments
Obtain and use a credit report about me/us provided by a credit-reporting agency to collect overdue
payments from me/us,
4. Exchange of information between credit providers. Obtain from and use or give to another credit provider
(including any
other credit provider who has lent money on the same security) any information about my/our credit
worthiness, credit standing, credit history or credit capacity.
a. I/We understand this information may be used for any of the following
purposes:

FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT
© Copyright 2015, The National Finance V
b. To assess my/our credit worthiness
c. To assess an application by me/us for credit
d. To help me/us avoid defaulting on my/our credit
obligations e. To notify a default by me/us
f. To assist in the collection of overdue payments from me/us
g. To exchange information with credit providers who are involved in a mortgage
securitisation scheme h. To exchange information with credit providers as to the status of
this loan
5. Exchange of information with advisers and other persons
Obtain from and use or give away any personal information or commercial credit information about
me/us to any broker, financial consultant, accountant, lawyer, or other adviser acting in connection
with the loan to be provided to me/us pursuant to this application.
6. Provide information to credit reporting agencies
Give to a credit reporting agency personal information or commercial credit information about me/us
to obtain a consumer credit report about me/us or to allow the credit-reporting agency to create or
maintain a credit information
file containing information about me/us. The information which may be given before during or after the
provision of
credit to me/us is limited to:
Identity particulars
a) The fact that consumer credit or commercial credit has been applied for and
the amount b) The fact that XYZ is a current credit provider to me/us
c) Payments that become overdue more than 60 days and for which collection action has
commenced d) Advice that payments are no longer overdue in respect of any default
that has been listed
e) Advice that cheques drawn by me/us for more than $100 have been dishonoured more than once
f) In specific circumstances, where in the opinion of Mortgage Servicer, I/we have committed a
serious credit infringement
g) That the loan provided to me/us by XYZ has been paid or otherwise discharged
h) Or otherwise in connection with arrangements relating to lenders’ mortgage insurance
7. Provide information for securitisation
Disclose any report or personal information about me/us to another person in connection with
funding financial accommodation by means of an arrangement involving securitisation
8. Provide information to Guarantors
Provide any report or personal information about my/our credit worthiness, credit standing, credit history
or credit capacity that credit providers are allowed to disclose under the Privacy Act (including a credit
report) to any person who proposes to guarantee or provide security for, or has guaranteed or provided
security for, the repayment of a loan provided to me/us to enable them to decide whether to act as a
guarantor or provide security or to keep them informed about any guarantee or security they may
provide
9. Provide information to trade insurer
If my/our application is for commercial credit, I/we consent to a trade insurer obtaining a credit report
about me/us containing consumer credit information, in order to assess whether to insure XYZ for the
loan given to me/us, or the risk of providing insurance or to assess my/our risk of defaulting under the
loan
10. Authority to obtain, exchange and disclose personal information concerning a Guarantor
Obtain and use a credit report from a credit reporting agency containing personal information about
me/us to assess whether to accept me/us as a guarantor for the commercial credit or consumer credit
for which the Applicant has applied or otherwise in connection with arrangements relating to lenders’
mortgage insurance
I/We consent to such personal information and/or credit information about me/us being used or disclosed
to the organisations or persons for the purposes described in this consent and acknowledgement (even
though some organisations may be overseas), including (without limitations)
I/We also understand and agree that the Originator may be paid and retain fees, margins and
commission in respect of the credit arranged by the Originator.
Applicant(s) Signature
……………………………………………………………………………………………………………………………….
Applicant (s) Name …… John James Dowell and Mary Jane Dowell Date……………
06/09/2014…………………………………………………

FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT
© Copyright 2015, The National Finance V
LOAN APPLICATION COVER
SHEET
Date: ....... 06/09/2014............................... No. of Pages (if faxing):
............................ Broker Name: ...XYZ BROKERS
LTD..................................................................................... Broker contact:
.......009912348686................................................................. . (phone/fax)
............ 04112348686..............................................................
(mobile)
[e-mail] ......................................
(email)
------------------------------------------------------------------------------------------------------------
Borrowers: John James Dowell and Mary Jane
Dowell
Loan Type: ....MORTGAGE..................... Loan Amount: ....
$685,000..........................
Loan Term: ........30 YEARS....................... Interest Rate:
....5.5%..........................
Loan Purpose: ........BUY NEWLY BUILT TWO BEDROOM
HOUSE...............................................
.
.............................................................................................................
...
Deposit: $1,000..................................... Equity: ........................
Security Details: Own Home valued at $995,000, 2014 Ford Falcon worth $18,000, a
2015 Land
Cruiser worth $30,000.
Estimated LVR: 86%
Names on Title: John James Dowell and Mary Jane Dowell
Valuation Details Own Home valued at $995,000, 2014 Ford Falcon worth $18,000, a
2015 Land
Cruiser worth $30,000.
Income/Employment Details: John James Dowell: Tourist Manager earning
$115,000 p.a.
Mary Jane Dowell: Primary School Teacher earning
$64,000p.a.
.
.............................................................................................................
...
Background/Comments: The client is eligible for FHOG and the mortgage loan can be
serviced by them based on the LVR OF 85% a period of five years, variable rate of
5.5% basing on principle amount only leaving out interest.

FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT
© Copyright 2015, The National Finance V
.
............................................................................................................
....
Recommendation: .A ward mortgage loan of $685,000 on
agreed terms only......................................
Attachments:
...............................................................................
……………………………………………………… (Broker signature)