Loan Application Process PDF

Loan Application Process
Assessment cover sheet
In order 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 must
be uploaded in an electronic format i.e. Word, Excel, PDF or Scan. A maximum of five (5)
attachments (maximum 20MB each) can be uploaded for this assessment. Please see the
step-by-step instructions in your Member Area on how to upload assessments.
Student details
Course name
Assessment name Loan Application Process Assessment
Surname Given name
Address Postcode
Email
Phone Phone (other)
Current occupation
Industry Years in industry
When you upload your assessment you will be asked to confirm that your assessment submission to
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: [phone] OR Email: [e-mail]
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Loan Application Process
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 services
 FNSFMB403 Present broking options to client
 FNSINC402 Develop and maintain in-depth knowledge of products and services used by
an organisation or sector
 FNSFMB501 Settle applications and loan arrangements in the finance and mortgage
broking industry
 FNSCUS501 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.
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Loan Application Process
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.
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Loan Application Process
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.
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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)
DOB 04.01.1982
EMPLOYMENT Marketing Manager - National Clients
EMPLOYER Hi-Temp Gas
ADDRESS 21 Alwyn Street, In your City
CONTACT Tel: (H) 91000000 (B) 87643210 (M) 0419999999
Facs: 91000001
Email: [e-mail]
Website: www.hitempgas.com.au
PERIOD 6 YEARS
GROSS INCOME $111,000 p.a
MOTOR VEHICLE Fully maintained
Cheryl Ann Henderson of 17 Capital Court, In a suburb near you. (4 years)
DOB 07.03.1981
EMPLOYMENT Law Clerk
EMPLOYER Smith, Smith and Smith
ADDRESS Suite 14, 12 Flinders Street, In your City
CONTACT Tel: (H) 91000000 (B) 65432101 (M) 0416667901
Facs: 03 10000001
Email: [e-mail]
Website: www.smithslegal.com.au
PERIOD 6 YEARS
GROSS INCOME $65,000 p.a.
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OTHER DETAILS
DEPENDENTS Jennifer Ann Henderson DOB 07.03.2004
Michael Alan Henderson DOB 07.03.2004
NEAREST RELATIVE NOT
LIVING WITH APPLICANT
John Joseph Henderson (Brother)
108 Budburst Ave, In a suburb near you
0410000000
BANK DETAILS NAB – BSB: 001 002 A/c Number: 1234567
REAL ESTATE AGENT Flying High Estate Agents
4 Birdsnest Avenue, In a suburb near you.
CONTACT: Hugh Talon
Tel: [phone] Facs: 10000080
Email: [e-mail]
BULDER Homes Plus More (Master Builders)
38 Archdeacon Street West, In a suburb near you.
CONTACT: Grace Love
Tel: [phone] Facs: 40000003
Email: [e-mail]
CONVEYANCING FIRM Lightning Settlements
Suite 3, 4 Business Ave, In a suburb near you.
CONTACT: Louise Stratton
Tel: [phone] Facs: 10005000
Email: [e-mail]
PROPOSED ADDRESS Lot 47 Eaglehawk Circle, In a suburb near you.
LAND DESCRIPTION Lot 47 on Plan of Subdivision 731680Z
PARENT TITLE Volume 11580 Folio 996
Created by instrument PS725680G 04.04.2018
VENDOR Inspired Developments Pty Ltd
Suite 114/ 100 Bridge Road, In a suburb near you.
Tel: [phone] 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.
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Loan Application Process
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.
SCENARIO:
The Hendersons: signed a contract of sale subject to finance for 3 weeks have $110K savings are eligible for FHOG (don’t forget to add the FHOG amount to their funds to complete) paid a $24K deposit on the $240K block of land estimate construction costs will be in the vicinity of $350-360K
(Students in all jurisdictions will have to adjust the land and construction costs
to fit in the capped amount criteria.) 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.
Assessment V3.3 © AAMC Training Group A7
STATEMENT OF ASSETS & LIABILITIES
for
ALAN J HENDERSON AND CHERYL A HENDERSON
As at 00 / 00 / 00XX
ASSETS LIABILITIES
Limit Owe Payment Lender
$ $ $ $
Bank Savings (NAB) 17,000
Cash Management A/c
Bankwest 93,000
20XX Mitsubishi Outlander 27,000 21,000 539 88.PCM ANZ
Furniture 95,000
Collectables 40,000
Share Portfolio 25,000
Superannuation (AJH) 177,860
(CAH) 89,141
CREDIT CARDS
NAB VISA (AJH) 5,000 221.00 (cleared monthly)
Westpac VISA (CAH) 4,000 878.00 (cleared monthly)
TOTALS $ 564001 $9,000 $22,099.00 $539.88

Loan Application Process
AAMC TRAINING DOCUMENT CHECKLIST
LOAN APPLICATION PROCESS ASSESSMENT
MORTGAGE FINANCE
Must be completed and included in your uploaded Assessment
EVIDENCE 
1. A fully completed AAMC Training Assessment Cover Sheet ☐
2. A fully completed AAMC Training Document Checklist (this page) ☐
Case Study - Loan Application Preparation (Task 1)
3. File notes from first contact through to settlement in chronological order ☐
4. Authorised Credit Representative Credit Guide and Licensee Credit Guide ☐
5. Privacy Statement and Consent form ☐
6. Client Needs Review or Fact Find ☐
7. Combined Credit Quote and Proposal ☐
8. Product Comparison Report (at least three options) ☐
9. Preliminary Assessment ☐
10. Costing sheet for Fees and Charges ☐
11. Fully completed Lender Loan Application or Copy of Online lodgement
Select a lender of your choice there are some forms in useful resources. ☐
12. 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)
13. A completed serviceability calculator (refer to useful resources)
Select a lender of your choice there are some calculators in useful resources.
☐
14. Loan Comments/Lender Comments. Notes to the lender in support of the application. ☐
15. Evidence of Income (Pay slips, Employers Letter, PAYG Summaries) ☐
16. Evidence of an Offer & Acceptance or a Contract of Sale or a Purchase contract ☐
17. Evidence of Council approved plans (House and land, off the plan packages)
Plus a Fixed Price Building Contract ☐
18. Evidence of savings/equity and other loan commitments ☐
19. Evidence of Valuation successfully completed ☐
20. First Home Owners’ Grant application (These can be downloaded from your local state revenue office) ☐
21. Anti-Money Laundering/Counter Terrorism Financing ID requirements
Note: 2 forms of identification are required for each applicant to the loan and a separate AML ID
form is required for each applicant.
☐
22. A Compliance file checklist ☐
Completing Customer File (Task 3)
23. Fully completed Settlement document pack (Refer to the Settlement File Checklist to ensure all
relevant documents are completed and submitted)
☐
24. 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.
☐
25. 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.
Privacy and Consent Declaration
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It can be ensured that while preparation of your lending plan proper adherence is placed both
on legal and your personal and we are confident of the quality and accuracy of our advice,
there are certain factors outside our control that can have an impact on lending option. These
factors include:
 the completeness and accuracy of the information you have supplied;
 the accuracy of the information received from other financial institutions;
 any legislation introduced after the preparation of your SOA;
 different results to the estimates used to illustrate the future performance of the
investments in your SOA (please note, these estimates are not intended as forecasts);
 whether you hold the investments for the length of time recommended;
 the economic environment in Australia and internationally; and
 Changes to your personal circumstances.
These, and other factors, are constantly changing. Neither I, nor Mentor Financial Planning
Pty Ltd, accept responsibility for any change in circumstances that affects the strategies
covered in your Statement of Advice.
As outlined in the Financial Services Guide (FSG) provided to you on the business do not
guarantee risk free exposure of the loan. Please note carefully that although historical
investment performance information may be provided, this is not necessarily an accurate
guide to future performance.
The report explains that the client have various loan taking options that can be advised in
respect of achieving the goals of the clients and also to reduce the risk for long term benefit of
the client.
Client Needs Review
As far as I can understand the situation, you have purchased a block of land on which you
would be building a house for yourselves and therefore you require loan advices for ensuring
that the risks can be kept at a minimum and a proper LVR is maintained. As per the personal
details provided Alan you work for a law firm and you have a gross salsry of $ 111,000 while
Cheryl you also have a income of $ 65,000. In my understanding you both have two childrens
and both are dependents. Now, as per the details sheet provided by you both, a ssavings of $
110,000 has been accumulated by you.
As per my belief, this is your first home which is being build and the current place
where you are staying is a rented placed. This means that you are applicable to claim FHOG
scheme which allows you deduxtions and the same is a scheme offered by the government.
You need my help to secure a borrowimg options which can manage the servicibility and the
risk factor in equal proportions. As per your request you want three sources as an option for
borrowing loans.
The assessment of the risk profile determines that the client are balanced investor as the
investment objective is to maintain stable returns over the medium term, whereby security of
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Loan Application Process
capital is of major importance. You will tend to seek higher returns where possible from
investments providing high security of capital and low investment risk.
Credit Proposal
On the basis of the information which is provided to me, I would be suggesting the loan from
ANZ bank which provides one of the best home loan options in the country. As pr my
computations, you require $ 508,000 more for meeting the sales and construction
requirements of the business and also the interior decorations. The amount of loan which you
require is high and therefore it is anticipated that the LVR would also be high.
Alternative Options
The alternative homes loans which xan be considered by you both for meeting the financing
requirements of UHome loans which operates in australlia is quite combatible with the FHOG
scheme. The second alternative which I can present before you is a loan from CBA which is
quite a safe and brilliant option. Howeever, in my opinion the home loan of $ 508,000 should
be taken from ANZ bank due to the effectiveness of the product.
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
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Client statement of position
Referred by: Peter Michael Consultant: Ian Harris
Date: 05/03/2019 Source: Accountant- 3 Smith St,
Melbourne-
Ph 03 94250000
Applicant 1: Mr/ Mrs/ Ms/ Miss Applicant 2: Mr/ Mrs/ Ms/ Miss
Surname: Brown Surname: Brown
First name: John First name: Samantha
Date of birth: 21/10/72 Date of birth: 13/06/74
Address: 1 Bourke Street Address: 1 Bourke Street
Point Cook VIC 3030 Point Cook VIC3030
Phone: [phone] Phone: [phone]
Mobile: [phone] Mobile: [phone]
Employer: Build It Right Carpentry
Pty Ltd
Business: FSR Consulting Pty Ltd
Occupation: Carpenter Occupation: Office manager
Income-gross/net $78,308 / $61,517.44 Income-gross/net $54,086/ $44,961.05
Current lender: Westpac FSR bank detail Westpac 032 000 123456
Estimated market
value:
$600,000 Mortgage balance: $120,000
Payment: $1,197.00 Mthly/Fortnightly/Weekly
Years to run: 10 Interest rate: 3.69%
Asset
values
$
Liabilities
amount
owing $
Monthly
payments
$
Lender
Existing properties:
1. 600,000 120,000 1,197.00 Westpac
Other personal assets: Caravan 20,000
Furniture 100,000
Motor vehicles:
2002 Holden Ute 25,000
Credit card (1) Limit $5000 1,000 150.00 ANZ
(2) Limit $10000 3,000 300.00 Citibank
Overdraft
Personal Loans:
Superannuation: Mr 160,000
Mrs 80,000
Insurances: Mr Mrs
Life: y/n 400,000 300,000 700,000
Trauma: y/n 100,000 50,000 150,000
Income prot. 61,502 40,564 102,066
Wills: y/n
Power of attorney: y/n
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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
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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
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Burrows Holden
ACN: 009 071 444
ABN: 47 009 071 444
TAX INVOICE
To:
John and Samantha Brown
For delivery to:
John and Samantha Brown
INVOICE DATE INVOICE/STOCK NO NEW/USED VEHICLE
MAKE
MODEL REGISTRATION
NUMBER
17/10/20XX 1425361 NEW HOLDEN CAPTIVA
AUTOMATIC
TBA
ENGINE
NUMBER
CHASSIS NUMBER COMPLIANCE
DATE
COLOUR CONTACT ORDER NUMBER
QR25230948 JNITBNT30A0044491 20XX TWILIGHT CLINT
NESBITT
Due on receipt
QUANTITY DESCRIPTION AMOUNT
1 Holden 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 Total 36,723.18
GST 3,672.32
Stamp Duty 2,379.00
Registration 816.50.00
Total Price $43,563.00
Total amount payable $43563.00
Make all cheques payable to Fantastic Holden
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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
DESCRIPTION AMOUNT
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!
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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
A16 © AAMC Training Group Assessment V3.3

Loan Application Process
AAMC TRAINING DOCUMENT CHECKLIST
LOAN APPLICATION PROCESS ASSESSMENT
MOTOR VEHICLE & EQUIPMENT
Must be completed and included in your uploaded Assessment
EVIDENCE 
1. A fully completed AAMC Training Assessment Cover Sheet ☐
2. A fully completed AAMC Training Document Checklist (this page) ☐
Case Study - Loan Application Preparation (Task 1)
3. File notes from first contact through to settlement in chronological order ☐
4. CombinedCredit Guide and Credit Quote ☐
5. Privacy Statement and Consent form ☐
6. Client Needs Review or Fact Find ☐
7. A. Product Comparison Report (at least three options). B. Research Explanation. ☐
8. Preliminary Assessment ☐
9. Combined Credit Quote and Proposal ☐
10. Costing sheet for Fees and Charges ☐
11. Fully completed Lender Loan Application or Copy of Online lodgement ☐
12. Notes to lender with details of clients’ background and requirements. ☐
Process Applications for Credit (Task 2)
13. A completed lenders serviceability calculator (refer to useful resources) ☐
14. 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.
☐
15. Anti Money Laundering/Counter Terrorism Financing ID requirements
Note: 2 forms of identification is required for each applicant to the loan and a separate AML ID
form is required for each applicant.
☐
16. A Compliance File Checklist ☐
17. Completed AAMC Training Broker/Customer File checklist ensuring all requirement for PEVC are
ticked. ☐
Completing Customer File (Task 3)
18. 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)
19. 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)
20. 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.
Assessment V3.3 © AAMC Training Group A17

Loan Application Process
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)
Type Data 
M/PEVC File Notes from first contact through to Settlement in chronological order ☐
M/PEVC Evidence of loan approval ☐
M only Loan/letter of offer from lender ☐
M/PEVC Borrowers checklist (Document sign-up) ☐
M only Correctly signed home loan contract (including transfer of land and mortgage of land
relevant to the State.) ☐
PEVC Correctly signed Consumer Loan contract for the Lender chosen ☐
M/PEVC Insurance details – Home Certificate of Currency or Motor Vehicle Certificate of Currency ☐
M only Borrowers Authority and Instructions ☐
M only Evidence of settlement related communications between all parties (Broker, Conveyancer,
Lender, Client) e.g. a letter or email showing settlement communications between all parties. ☐
M/PEVC Letter of successful settlement from broker ☐
M/PEVC Service Questionnaire or relevant example of feedback from client ☐
☐
☐
☐
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Loan Application Process
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.
1. Financial Services
Credit Guide/Credit
Guide
Along 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.
2. Authority to Act &
Privacy Consent Form
The 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).
3. Authorised Credit
Representative profile
This 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.
4. Data Collection –
Business or Personal
Consumer Client
Needs Review/fact
Find
By 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.
5. Costing sheet for fees
and charges Estimate 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.
6. Interview notes A 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.
7. Preliminary
Assessment
Based 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.
8. Credit Quote and Credit
Proposal Documents
These 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.
9. 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
Assessment V3.3 © AAMC Training Group A19

Loan Application Process
10. Evidence of income Lenders 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.
11. Self-employed/
Commercial clients
A copy of the last two years individual’s and company tax returns/financial
statements along with a serviceability assessment for self-employed
individual/partner.
12. Signed statement of
assets & liabilities (SOP)
This information allows lenders to readily ascertain the financial standing of the
applicants.
13. Cash flow forecast When 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.
14. Serviceability When 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.
15. Copy of the Offer and
Acceptance (WA) or
Contract of Sale
Lenders 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.
16. First Home Owners
Grant application
Whilst 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.
17. First Home Buyers
Stamp Duty Concession
application
As 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.
18. Fully completed loan
application
Let 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.
19. 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”
A20 © AAMC Training Group Assessment V3.3

Loan Application Process
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.
20. Lenders/Broker
document checklist
All lenders have a checklist to ensure you have submitted the application
correctly with all the supporting documentary evidence. Please ensure this is
completed.
21. Anti Money Laundering/
Counter Terrorism
Financing
Due 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.
22. Business Registration/
Constitution and/or
Trust Deed
Business 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.
Assessment V3.3 © AAMC Training Group A21

Loan Application Process
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…………/…………/………………
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Loan Application Process
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 lenders 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. Although the
case studies provided did not require LMI it is helpful to understand policy guidelines as
many types of lenders and loans require LMI cover.
 Explain the approval guidelines i.e. who can approve/delegation; timeframes etc.
 Ensure you are adherence 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.
Assessment V3.3 © AAMC Training Group A23

Loan Application Process
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. You would include e.g. 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
2. 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.
3. 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.
4. Advice of Transaction Completed/Finalised
A24 © AAMC Training Group Assessment V3.3

Loan Application Process
- 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.
Assessment V3.3 © AAMC Training Group A25

Loan Application Process
Task 4: A (Activity) and B (Short Answers)
Create a customer/referrer database
A. 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.
SL
no
Name of the
Customer
Regi
on
Contact
Number Address Email Id
1 Logan Batt TAS
(03) 6275
1716 98 Hill StreetWATTLE HILL [e-mail]
2 Jake Ayers NSW
(02) 6656
8604 28 Wallum Court NUNDERI [e-mail]
3 Amelie Tweddle VIC
(03) 5327
7085
89 Yarra Street CROSS
ROADS
AmelieTweddle@telewor
m.us
4
Phoebe
Carruthers QLD
(07) 4516
3733 25 Creek Street THE GUMS
PhoebeCarruthers@army
spy.com
5 Alicia Haining VIC
(03) 9066
8900
92 Sale-Heyfield Road
BLAIRGOWRIE [e-mail]
6 Lucas Rankin NSW
(02) 6151
6869
16 Blairgowrie Avenue
ROCK FLAT
LucasRankin@jourrapide.
com
7 Sarah Dawbin NSW
(02) 6771
9790 35 Yangan Drive CAROONA
SarahDawbin@teleworm
.us
8 Hugo Treloar NSW
(02) 4024
9174
3 Weemala Avenue
BROWNS CREEK
[e-mail]
m
9 Austin Gay QLD
(07) 3427
8470 81 Davis Street CHELMER [e-mail]
10 Lachlan Colton QLD
(07) 4560
7804
13 Creek Street
BALGOWAN
[e-mail]
m
B. Additionally, answer the following questions in relation to your database and building/
managing your business contacts:
1. Why is important to build a database of clients/referral sources?
The data base system for the client is considered to be important as it stores
significant information on the clients. The business contacts help the brokering firms to
appropriately attract more customers to the operations of the business. The different
referrals which is available to the busines helps the business to also build a reputation
in the market.
2. Why is it important to develop professional relationships?
Development of Professional Relationship is considered to be an important aspect in
the operations of the business as the same allows a brokering company to expand its
A26 © AAMC Training Group Assessment V3.3

Loan Application Process
contacts and generate more revenue from the operational process of the business. The
business would be able to expand the operational process of the business in a
systematic manner following such a system.
3. When is it not appropriate to contact a person and why?
In case the if you are not able to build an understanding with the person who you re
contacting, then it is not appropriate to call that person as the positive response would
not be received and this would further hamper the chance to create an amicable
relation with the client.
4. 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?
An effective interpersonal skill allows the business or the brokers to handle the clients
in an effective manner. Interpersonal skills help in development of strong relations and
this can be considered to be the most effective way for building a database for
referrals and more clients. It is always emphasised that the employee needs to feel
comfortable in order to properly share all aspects on which he wants the advice. In
order to deal with a client a proper rapport needs to be made so that the client can be
made confortable and a situation of trust can be created in the business. The advisor
needs to be aware of other factors as well such as culture, race, religion and orgin of
the clients. In addition to this, the special needs of the clients must also be considered
by the advisor. This would help the advisor to approach the affairs of advice in a simple
but effective manner.
5. Explain why you think it would be important to follow up any business referrers as
quickly as possible.
Any businesses referrers needs to be followed up as quickly as possible so as to ensure
that the referrals comes to the business and does not seek out any other professional
advisor. In this manner, the business is able to protect iits revenue and operations in a
sopisticated manner.
6. What methods could you use in developing new business i.e.; advertising and
promotion of your services?
In order to effectively promote the products which is offered by the business, the
business needs to consider different medias of advertisement and promotion and also
which media would help the clients to reach out to more and more customers and
enhance the client base of the business.
Assessment V3.3 © AAMC Training Group A27