Loan Application Process Assessment - AAMC Training Group

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 successfully uploaded it will be pending review with your
nominated course assessor. Your assessor will mark your assessment and you will receive an
email advising you if you have been assessed as satisfactory. If you are marked as not yet
satisfactory you will be contacted and asked to provide additional information or re-visit the
assessment and re-upload your amended case study or written tasks.
Please contact our head office if you need assistance with your assessment:
Office: [phone] Fax: [phone] Email: [e-mail]
Assessment V2.3 © AAMC Training Group A1

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.
IMPORTANT NOTES: AAMC Training only wants to see your own work. Please do not
upload blank assessment tasks or instructions on how to complete same. When this
extra information is uploaded i t presents unnecessary work for the assessors and in turn
delays our assessment responses.
Task 1: You will notice that there are two options of Case Study within this assessment – the
first (A) is more specifically for Mortgage Brokers, the second (B) for brokers in the Plant &
Equipment and Motor Vehicle field. Please complete only the stream relevant to you
and indicate this on the assessment cover sheet.
Either the Mortgage Finance or Motor Vehicle Equipment Checklist must be submitted with the
fully completed assessment. This must encompass all documents from initial contact with the
clients until settlement of the loan. Documents must be submitted in a suitable logical order
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.
A2 © AAMC Training Group Assessment V2.3

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 only one of the case studies presented below, prepare a loan file from your initial
contact with the clients to preparing the loan application for lodgement with the client’s
lender of choice, through to settlement. Please refer to the document checklists in this Task
for the relevant steps required.
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.
Assessment V2.3 © AAMC Training Group A3

Loan Application Process
Case study A (Residential mortgage)
Background
Henry Leslie from Leslie Accounting Services has referred you his clients Frederick John and
Margaret Anne Everybody. He has mentioned that they are looking to purchase their first
home. Whilst in their early ‘40s, they have previously not owned a home due to the
husband being an engineer with the Australian Defence Forces. Because of this and
constant moving they really weren’t in a position to buy in one location. Frederick has since
left the services and has been working with BHP Billiton on their mining projects. This
entails working on a ‘two weeks on, one week off’ basis. Frederick enjoys an annual income,
paid monthly, of $115,000 with a subsidised rent when on location on the job.
Margaret works at the local council child care centre on a permanent/part time basis and earns
$29,000 annually, paid weekly. She is a qualified nurse.
They have two children. Joshua, 18, is employed fulltime, lives at home and pays $75.00
per week board. Melanie, 13, is in her first year at high school and is dependent on her
parents.
Currently the couple is renting in a suburb near you and paying $420.00 per week to the
local Ray White real estate office. Due to diligent saving and being beneficiaries of a family
deceased estate they find themselves in a sound financial position and ready to purchase
their own home and settle into one area. They are conscious of the current economic times
and wish to entrench their current situation by also considering future investment
opportunities.
One of the most important questions you will ask when completing your Client Needs
Review 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
Margaret have to visit Centrelink if an unforeseen event happens to Frederick? Should they
have to change their lifestyle? Just remember your Duty of Care.
They have around $184K plus the FHOG available and are looking to buy land with a
purchase price of $240K and construction 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.) They estimate they will spend an additional $60K on
furnishings and garden. 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. They normally clear
(swipe) their credit cards monthly with the exception of Mrs Everybody’s Myer 1 account.
It may be to their benefit to clear the car loan account with Esanda. These are the points of
discussion that should appear in your interview notes.
A4 © AAMC Training Group Assessment V2.3

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 either an existing or new home acquisition for your case study (you do
not have to complete one of each).
Answer:
Loan application for Fredrick John Everybody and Margaret Anne Everybody
Loan amount:- $6,60,000
Last date for approval:- 31/08/2018
2. If you are in a State or Territory that only offers a FHOG on new and not established
homes, you will have to choose that option for a case study.
Answer:
Reasons for loan
Mr. Frederick John Everybody was a former engineer in Australian Defence Forces. For
this reason, the family could not live in one place. But now as Mr. Fredrick is being working for
BHP Billiton Company, the family can have a stable place to live in. For this reason, they are
looking for to buy a new house to settle down in one area. Their financial condition is also stable
at present.
Employment
Mr Frederick is an engineer working on the mining projects of BHP Billiton Company and Mrs.
Margaret is currently working at a local council child care centre as a nurse. Both of them are
working as a permanent employee in their companies.
Income
The income of Mr. Frederick is calculated as $115,000 per annum which is paid to him monthly.
Apart from this, Mr. Frederick enjoys a subsided rent when on location on the job. Mrs. Margaret
earns $29,000 annually which is paid to her in weekly basis.
Recommendation
The loan application is recommended to this family for several reasons. At first, they are having a
permanent job and enjoying a decent amount of money as their salary every month. They are also
having a stable financial condition which made them think of buying their first house. The income
of the family is annually $144,000 and the liabilities made by them are being paid regularly. The
amount of their total assets is $531,001 and the total amount of their liabilities is $638.29. They
are also eligible to receive a FHOG of over $184,000. Thus it can be considered that the family is
totally eligible for the loan.
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.
Assessment V2.3 © AAMC Training Group A5

Loan Application Process
A6 © AAMC Training Group Assessment V2.3
STATEMENT OF ASSETS & LIABILITIES
for
Frederick John Everybody (FJE) and Margaret Anne Everybody (MAE)
As at / /
ASSETS LIABILITIES
Limit Owe Payment Lender
$ $ $ $
Bank Savings (ANZ) 17,000
Cash Management A/c
Bankwest 167,000
2010 Holden Commodore Sedan 33,000 28000 588.29/m Esanda
2004 Toyota Corolla 2,000
Furniture 95,000
Collectables 40,000
Share Portfolio 70,000
Superannuation (FJE) 77,860
(MAE) 29,141
CREDIT CARDS
ANZ VISA (FJE) 14,000 684.00 (cleared monthly)
Westpac MasterCard (MAE) 4,000 1,278.00 (cleared monthly)
MYER 1 Card (MAE) 1,000 673.00 50.00/m
TOTALS $ 531,001 $19,000 $30,635 $638.29