AAMC Training - Loan Application Process Assessment - FNSFMB401

This document presents a comprehensive assessment of the loan application process, designed for students in finance and mortgage broking courses. The assessment includes a detailed case study (with options for residential mortgages and plant & equipment/motor vehicle finance), requiring students to prepare a loan file from initial client contact through to application preparation and lodgment. Students are expected to demonstrate competency in communication, information gathering and analysis, planning, teamwork, problem-solving, and technology use. The case study involves a detailed fact find, client needs review, and the selection of appropriate loan products, while also considering relevant financial regulations and client risk protection. The assessment emphasizes practical application and requires the inclusion of supporting documentation, such as client details, employment information, and proposed property details. Students must also consider the impact of local regulations and stamp duty concessions. The assessment includes multiple tasks, including short answer questions, case studies, and workplace projects, and requires students to submit a cover sheet and skills sign-off forms. The document stresses the importance of original work, adherence to assessment guidelines, and proper referencing.

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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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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