Using the information contained in the Scenario below, please complete the following 6 tasks. You must complete each task in order for your submission to be assessed. Omission of any of these 6 tasks will be regarded as Not Yet Competent and you will then be required to resubmit this assessment in full. 1. Complete the Fact Find document on these clients – using the form in Appendix 14.  We have not included all supplementary information on these clients so you will need to create your own “improvised” answers for inclusion in the Fact Find document. Trainees who already have access to their own version of a Fact Find template may use their own form as an alternative to that provided in Appendix 14. 2. Recommend a product for the clients and explain your reasons for recommendation 3. List the supporting documents that would be needed to support the loan 4. Complete loan costing sheet * 5. Complete a loan servicing calculation (NSR) * 6. Complete a loan application form (an ANZ loan application form has been provided for you which you must use) and complete all of the accompanying documents as provided for you. Your answer to this Activity should be prepared as if you were submitting a real full loan application to the lender. Please note: If there is information required on the application that is not supplied please improvise. The application should be completed as neatly as possible to ensure ease of review. It is to be submitted to NFI as if NFI is the lender and you were an accredited broker (but you do not need to make up “dummy” supporting documents eg. rates notice, etc). If you do not submit in a professional manner, your assessment will not be marked. * The fees and charges required in order to complete this assignment correctly (ie. Estimate of Costs worksheet) can be found in Unit 7 (use your own state-specific section at the back of Unit 7) and the instructions for how to complete the NSR form are in Unit 8. A Lenders Mortgage Insurance Chart (LMI) can be found Unit 7. Trainees should ensure they source their fees and charges from these units. Scenario Clients: Mary Jane Dowell DL No.: 4167384 DOB: 06/06/65 Australian Passport No.: L93214773 John James Dowell DL No.: 4378691 DOB: 03/05/67 Australian Passport No.: L8078972 Current Address: 46 Collins Street, North Ryde NSW 2113 Time there, 2.6 years Phone 0411 123 456 Previous Address: 37 Maple Street, Gladesville NSW 2111 Time there, 4 years. Children: 2 children aged 7 and 9 Scenario Continued overleaf .... FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT TASKS Page 2 © 2016 The National Finance Institute V.280916 ASSIGNMENT 1 Continued Existing Property: Own Home valued at $995,000 Current outstanding loan balance $180,000 (with CBA) Loan Repayments $1,080 per month Cash: The clients have $12,000 cash in the bank. Credit Cards: CBA Visa - $5,000 limit (balance $2,000) Westpac MasterCard - $5,000 limit (balance $1,500) Mr Dowell works at the Parramatta Council as the tourism manager and earns $115,000 p.a. He has worked there for 8 years. Mrs Dowell is a primary school teacher at Ryde Primary School and earns $64,000 p.a. She has worked there for the past 3 years after having several years of home duties. The Dowells own two cars – a 2011 Ford Falcon worth $18,000 unencumbered and a 2011 Pajero worth $30,000 subject to finance of $20,000 ($450 per month). The Dowells have a 36 month Interest Free loan from GE for a sound/movie system for $3,000. The minimum monthly payment is 5%. You interviewed Mr and Mrs Dowell at your office after some initial telephone conversations previously. They both spoke good English as they are permanent Australians for 20 years and they expressed their excitement at buying their second property. They are aware they will need to visit the new lender branch to complete a Customer Identification Procedure prior to finance approval from the lender. They have not yet enquired into an exact payout figure from CBA. The clients wish to refinance their current loan and purchase an investment property. The investment property is an established 2 bedroom unit in a residential block of 4 at 45 (Lot 4) Jones Rd, North Ryde and is valued at $685,000. Rental Income of $650 per week is expected and the body corporate expense will be just $35 per week. They have made an offer on the unit at the asking price, have put down a $1000 cash deposit, and the offer has been accepted with settlement in 60 days. Title particulars: Lot 4, Folio 3871, Vol. 1821. The solicitors they will be using are Henderson & Partners, ph 1234 567 890 Scenario Continued overleaf .... FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT TASKS Page 3 © 2016 The National Finance Institute V.280916 ASSIGNMENT 1 Continued Assumptions: o Assume this is a cross collateralised loan o Assume this structure will be a Line of Credit or a Split facility o Your clients have told you: that they would prefer to keep the repayments on their home separate from their investment property. They would like to keep the repayments on their home as principal and interest but want to pay interest only on their investment property. They also wish to pay out their personal loan on the car to rationalise their loan repayments. They have agreed that ANZ will be a suitable lender for their circumstances o Although addresses show NSW, for the purpose of duty and other cost calculations, assume that the clients live in the same state as you (the broker). o You can assume a Standard Variable Rate of 5.5% and a Qualifying rate of 2% above the Standard Variable Rate. o Assume the current car loan will be paid out by the refinance of the home. o Assume the clients will be “full-doc”. Please note: The table of living allowances on the NSR sheet is based on the Henderson poverty index and may be used in these assignments as we are not using a real client. However in real life ASIC has ruled that a budget must be completed for each client to assess living expenses (we provide a sample budget form at the back of Appendix B20 for interest). FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT TASKS Page 4 © 2016 The National Finance Institute V.280916 ASSIGNMENT 1 Continued 1. Complete the Fact Find provided in Appendix 14 or your own company’s Fact Find document (and improvise any information that has not been provided in the scenario). 2. Recommend a product for the clients and explain your reasons for the recommendation ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT TASKS Page 5 © 2016 The National Finance Institute V.280916 ASSIGNMENT 1 Continued 3. List the supporting documents that would be needed to support this loan application. Even though there is a checklist in the lender’s application form, you must list the documents separately below. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING – ASSESSMENT