FNSFMB401A Assessment 1
Version 1
Business & Finance/Banking & Finance/Bankstown
Last updated Feb 12
Disclaimer: Printed copies of this document are regarded as uncontrolled. The version on the website is the current version.
Diploma of Finance and Mortgage
Broking Management
Course 10732
FNS50311
Prepare loan application on behalf of
finance or mortgage broking clients
FNSFMB401A
All elements of this unit are covered by this assessment
Name:
This unit is UNGRADED and will be recorded as competent/not yet competent on your official transcript
To be assessed as competent in this section of the unit you must achieve 80% overall competency
I accept by uploading this assessment that I am certifying that this is entirely my own work, except where I have given fully documented references to the work of others, and that the content of this assessment has not previously been submitted for assessment in any formal course of study.
Note: Copying information directly from the course notes is plagiarism unless it is properly referenced. In addition it is not a competent answer unless an explanation in your own words is also provided to demonstrate your understanding.

Question 1
One of your appointments as a broker for This Town Brokers is with married couple Steve and Vicki Cooke. They are looking to purchase a property and wish to borrow about $320,000.
Steve is a project manager for an engineering company. He has been with the same company for 4 years. His salary package includes a fully maintained company car. Vicki is a legal secretary and has been with her employer for the last 10 years. She has a personal loan for her car.
They have brought with them the following original documents for you to copy and keep on file. They are not sure if they have brought all the correct documents and want your advice.
They have brought:
• Identification verification provided in the form of original documents, Drivers licence, Valid Passport and Medicare Card
• Their most recent payslip each.
• 6 months of savings account statements
• 3 months credit card statements for both of them
Required:
a. Using the checklist provided complete and tick the documents received
b. Provide a list of what additional documents the Cooke’s need to provide.

EVIDENCE CHECKLIST
Clients name:
Reference Number:
Proof of Identification
? Driver’s License
? Passport
? Birth Certificate
? Pension /health care card
? Medicare card
? Rates notice
? Regular bill with current address

In addition for businesses
? Certificate of incorporation if a company
? Registration of business name
? Signed consent form for credit checks

Proof of income

? Last 3 payslips
? Last years payment summary or tax return
? Letter from employer if working for less than 6 months
? Centrelink benefit statements
? Dividend and investment advices
? For existing rental properties rental statements or rental ledger from real estate agent for last 12 months
? If property purchased is to be rented then letter from real estate agent detailing anticipated rental return

In addition for businesses
? Last 3 years taxation returns
? Last 3 years financial statements

Proof of Assets
? Copy of contract of Sale
? Rates notices/ Copy of certificate of Title for existing properties
? Current valuations for all properties
? 6 months bank statements or passbooks for all savings accounts
? Share certificates

In addition for businesses
? Plant register

Proof of Liabilities
? Last 12 months home loan statements if refinancing
? Last 12 months loan statements for all additional loans i.e. Investment car and personal loans
? Last 3 months credit card statements
? Last 3 months statements for any hire purchase or interest free arrangements

In addition for businesses
? Leasing agreements
? Hire purchase agreements

Question 2
Vicki and Steve Cooke have now returned with the additional documentation as they wish to go ahead with the lender application as they have found a house they wish to buy.
The following information is obtained through discussion with Vicki and Steve Cooke :-
They both have full time employment. Steve at Regprod Pty Ltd, Unit 4 74-82 Link Rd Thatown, NSW 2999 telephone 02 7239 8879. Vicki at Smith Rogers and Partners, 32 Argyle St Smithtown NSW 2309 telephone 02 6789 1234. They have found a house for $460,000 and they have $205,000 deposit received recently from the sale of their previous home.
They have provided their current address as 29 Chapman Rd Othertown NSW 2878 which they have been renting for the last 6 months since they sold there previous home at 92 Frederick Circuit, Thistown, NSW 2999 which they had lived in for 5 years. They share this house with their 2 children 7 year old Jonathon 10 year old Tabitha. They currently pay $1680 per month in rent.
They are existing customers of Fedbank and have a joint savings account of $205,000.They each have a Fedbank credit card Steve with a $3000 limit and Vicki with a 7000 limit. Their repayments are $90 and $210 respectively each per month.
They only have one car a Holden Commodore 2008 model that Vicki owns worth $38000, and have financed it through a personal loan with Fedbank. They currently have a balance of $12000 owing and their repayments are $440 per month. Steve has a superannuation policy to the value of $75000. Vicki has a superannuation policy also to the value of $75,000 and they have furniture to the value of $80,000.
The Cooke’s have advised they wish to take out a loan for $340,000. They want to have the stability of a fixed rate for 3 years but still retain the flexibility of a standard variable rate so they want to fix $240,000 for 3 years and leave the remaining $100,000 as a Standard Variable. The term of the loan is 30 years.
The new address of the property being purchased is 19 Best Rd Thistown Heights NSW 2998. It is a four bedroom brick house. The purchase price is $460,000. A copy of the contract is currently with their solicitor Anthony Smith of Smith Rogers and Partners, 32 Argyle St Smithtown NSW 2309 telephone 02 6789 1234

They have provided all their income details:
Annual salary Steve $120000
Annual salary Vicki $45,000
Their net monthly salary after tax
Steve $7166
Vicki $3125
From the 100 point ID that they have provided you have obtained the following additional information:
Drivers License Numbers: Steve 4563DC, Vicki 9870MN
Date of Birth: Steve 7/6/67, Vicki 18/4/68
They have provided you with the following contact details:
Home Work Mobile Email
Steve 02 5677 3223 02 72398879 0423456712 svcooke@gmail.com
Vicki 02 5677 3223 02 67891234 0432099889
Required
Complete the loan application for Steve and Vicki Cooke using the information provided above.

LOAN APPLICATION-
Before you complete this application, please be sure you can answer “yes” to the following questions.
Are you: (a) at least 18 years of age? (b) a permanent resident of Australia?
Section 1 – Loan Purpose (please mark box with an X)
First Home Buyer * Buying/Selling Building New Home Investment Property
Refinance Line of Credit Other (give details):
* If eligible for First Home Owners Grant (FHOG) and Duty Concessions please complete the FHOG Application attached.
Section 2 – Loan Product Required
PRODUCT (please mark box with an X) LOAN
AMOUNT ($) TERM
(years)
Standard Variable Rate Loan
Basic Variable Rate Loan $
Line of Credit $
Introductory Fixed Rate Loan 1 Year $
Fixed Rate Loan 1 yr 2 yrs 3 yrs 4 yrs 4 5 yrs $
Split Loan * 1 yr 2 yrs 3 yrs 4 yrs 5 yrs $
* For Split Loans, please select fixed period plus complete Standard Variable Rate Loan details
Section 3 – Personal Details
Borrower 1 Borrower 2
Title: Title:
Given Names: Given Names:
Surname: Surname:
Date of Birth: Date of Birth:
Marital Status: Marital Status:
Ages of Dependants: Ages of Dependants:
Driver’s Licence No. Driver’s Licence No.
Home Phone Number: Home Phone Number:
Work Number: Work Number:
Mobile Number: Mobile Number:
Email address: Email address:


Current Residential Address: Current Residential Address:

Years/Months at Current Address: Years/Months at Current Address:
Previous Residential Address (if less than 3 years at current address): Previous Residential Address (if less than 3 years at current address):

Years/Months at Previous Address: Years/Months at Previous Address:
Postal Address (only if differs from current residential address): Postal Address (only if differs from current residential address):

Section 4 – Employment Details
Borrower 1 Borrower 2
Employment Pattern:
(eg full time, part time) Employment Pattern:
(eg full time, part time)
Occupation: Occupation:
Current Employer:
Current Employer:
Employer Address:
Employer Address:
Employer Phone Number: Employer Phone Number:
Years of Employment: Years of Employment:
Previous Employer: Previous Employer:
Years of Employment: Years of Employment:
Self Employed Borrower 1 Self Employed Borrower 2
Name of Business:
Name of Business:
Nature of Business: Nature of Business:
Date Business Started: Date Business Started:
Address of Business:
Address of Business:
Accountant’s Name:
Accountant’s Name:
Accountant’s Address:
Accountant’s Address:
Accountant’s Phone No.: Accountant’s Phone No.:

Section 5 – Assets and Liabilities
Assets Present Value Borrower 1 Ownership (%) Borrower 2 Ownership (%)
Residential Property

Other Property
1. $
2. $
3. $
4. $
Accounts
(name and branch of financial institution)




Other Personal Assets
Motor Vehicle Make:
Year: Model:
Superannuation
Shares
Home Contents
TOTAL ASSETS $

Liabilities Balance Owing/Limit Monthly Repayments
Residential Property - Lender and Loan Type
$ $
Other Property - Lender and Loan Type
1. $ $
2. $ $
3. $ $
4. $ $
Other Consumer Loans - Lender and Loan Type
$ S
$ $
$ $
$ $
Credit/Store Charge Cards – Issuer and Card Type
$ $
$ $
$ $
$ $
Other Commitments
Rent $ $
Child Support Payments $ $
HECS Debt $ $
Loans where you are currently Guarantor $ $
TOTAL LIABILITIES $ $
NET ASSETS
(TOTAL ASSETS – TOTAL LIABILITIES) $
Section 5 Continued – Assets and Liabilities

Section 6 – Income
Salary/Wage Earners
Borrower 1 Borrower 2
Gross Annual Salary/Wages $ Gross Annual Salary/Wages $
Net Monthly
Salary/Wages (after tax) $ Net Monthly
Salary/Wages (after tax) $
Monthly Rental Income $ Monthly Rental Income $
Other Monthly Income $ Other Monthly Income $
Total Monthly Income $ Total Monthly Income $
Self Employed
Borrower 1 Borrower 2
Annual Net Income (after tax) $ Annual Net Income (after tax) $
Monthly Net Income
(after tax) $ Monthly Net Income
(after tax) $
Monthly Rental Income $ Monthly Rental Income $
Total Monthly Income $ Total Monthly Income $
Section 7 – Proposed Security
Principal Security Property
Property Address:
Property Description
Title Particulars Lot Plan Volume Folio Id
Current Owners
Proposed Owners
Occupancy Self Tenants Purchase Price/Market Value:
Contact Details for Valuation Contact Name Contact Numbers
Additional Security Property
Property Address:
Property Description
Title Particulars Lot Plan Volume Folio Id
Current Owners
Proposed Owners
Occupancy Self Tenants Purchase Price/Market Value:
Contact Details for Valuation Contact Name Contact Numbers
Section 8 – Solicitor/Conveyancer Details/Settlement Agent Details
Firm Name:
Contact Name:
Address:
Phone:

Section 9 – Business Purpose Declaration
I/We declare that the credit to be provided to me/us by the credit provider is to be applied wholly or predominantly for:
• business purposes; or
• investment purposes other than investment in residential property.

IMPORTANT
You should only sign this declaration if this loan is wholly or predominantly for:
• business purposes; or
• investment purposes other than investment in residential property.
By signing this declaration you may lose your protection under the National Credit Code.
Borrower 1
Name:
Signature:
Date Signed:
Borrower 2
Name:
Signature:
Date Signed:

Section 10 - Declaration

I/We acknowledge/understand the following:
• This enquiry for finance does not constitute an offer or acceptance of a credit facility.
• If FEDBANK approves this application, the terms and conditions of the loan would be contained in a formal offer.
• After this application has been made, FEDBANK reserves the right to change any interest rate quoted.
• In the event that this application does not proceed for any reason, the application fee and valuation fee are not refundable.

I/We declare that the information provided in this form is by me/us is true and correct.
Borrower 1
Name:
Signature:
Date Signed:
Borrower 2
Name:
Signature:
Date Signed:
Question 3
It is now 6 days since you submitted Vicki and Steve Cooke’s Loan application to Fedbank, the lender. You have just received notification from Fedbank that they are running 5 days behind in their processing department. Briefly outline any action you would take with:-
a. Fedbank
b. Vicki and Steve Cooke
Question 4
Subsequent to this action Fedbank advises you that the loan is now approved for Vicki and Steve Cooke. Briefly outline any action you would take with your clients.

Question 5
Fedbank has advised that the Loan application for a different client has illegible pay slips for one applicant. What action would you take with:-
a. Your client
b. Fedbank
Question 6
You have now resent legible pay slips and Fedbank has advised that the Loan application has been declined because the there is not enough income to meet the lending criteria for that loan amount. What is your responsibility to this client?
Question 7
John is a new broker to your firm and he is having difficulty understanding why it is important to maintain communication with both the lender and the client. Give John three reasons why it is important to maintain this communication.