Complete a loan servicing calculation

Reference no: EM132600922

Part 1:

Scenario

A potential first home buyer phones and asks you to explain the various loan options available to them and the benefits and disadvantages of each one. They make mention of "no-frills loans", professional packages, lines of credit and honeymoon rates, so you must cover these 4 options in your answer as a minimum.

Task

Write or type a "script" to be used in response to this enquiry that dearly explains the various loan options available and the benefits and disadvantages of each one.
• You do not need to improvise further comments from your first home buyer
• You must incorporate at least one selling message at the end of your script
• Keep your script to 500 words maximum.
We encourage you to type your script, however you may handwrite if you do not have access to a computer.
NOTE: Assume for the purpose of this assessment task that you will focus on answering the specific question, rather than following a prospect sheet or checklist. You do not need to include any conversation from the customer, just your own. This is a summative assessment so you need to utilise the knowledge you have gained from the course overall.

Part 2:

Task
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 one of these 6 tasks will be regarded as Not Yet Competent and you will then be required to resubmit this assessment in full.
1. Recommend a product for the clients and explain your reasons for recommendation
2. List the supporting documents that would be needed to support the loan
3. Complete a loan costing sheet *
4. Complete a loan servicing calculation (NSR)
5. Download and complete the FHOG application form that is relevant to your state/territory, from the internet (or print from Appendix 15)
6. Complete a loan application form (a blank Westpac loan application form has been provided for you which you should use) and complete all of the accompanying documents as provided for you.
Your answer to this Task should be prepared as if you were submitting a real 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. If you do not submit in a professional manner, your assessment will not be marked.
* Important: 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 table (for your LMI calculation if applicable) is found in Unit 7. Trainees should ensure Units 7 and 8 are used to source correct figures for this assignment
1. Recommend a product for the clients and explain your reasons for the recommendation
2. List the supporting documents that would be needed to support the loan application. Even though there may be a checklist in the lender's application form, you must list the documents separately below.
3. Complete the loan costing sheet below
4. Complete a loan servicing calculation (NSR) by completing the form overleaf.
5. FHOG - Your client is eligible for the FROG. Log into the website of the Office of State Revenue in your own state and download the application for a First Home Owner Grant. Complete this application form and include with your Assignment submission. Any information within the FHOG form that you are unsure of can be improvised. Remember to read the FHOG questions carefully when it comes to signing or initialling. The FHOG form can also be accessed from your Appendix 15 (specific to your own state/territory).
6. Complete a loan application form [a blank Westpac loan application form has been provided for you which you should 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 loan application to the lender.

Please note: If there is information required on the application that is not supplied then please improvise. The application should be completed as neatly as possible to ensure ease of review. Tax charts, an LMI table and sundry forms can be found in your course content. You do not need to create any "dummy" supporting documents (eg. documents that your client would typically provide to you in a real submission, eg. rates notices), just ensure you list them where required.
For this question you must include the following 5 completed forms (all have been provided for you:
- Lending Checklist
- Credit Guide / Disclosures
- Privacy statement and Consent
- Loan Application Cover Sheet
- Westpac Application form

Reference no: EM132600922

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