Reference no: EM133380018
Implement complex loan structures
Rahn and Deepa have accepted your recommendations and have given you authority to proceed with their application.
As part of implementing their loan application you are required to prepare a formal written loan submission to the lender for pre-approval.
Note: Lender templates, credit policies and submission requirements vary from lender to lender. For this task, you can use the template called 'Credit Memorandum' (or follow the structure as a guide) and/or any of the other example tables provided in the Toolbox.
Your loan submission must include:
- details of borrower and their contact details
- borrowers' backgrounds including ability to manage project or possible use of building expert
- an overview of the proposal - what the finance is for the proposed structure and loan recommended. Include:
- product types
- deposit amount (if required)
- loan amounts
- terms
- interest rates
- interest repayments
- full details of the security being offered
- a funds-to-complete table, include statutory costs and any relevant fees
- the loan for the two remaining units (loan amount will be 80% of the completion value)
- outline the debt servicing position
- the projected rental income
- interest only repayments
- the security and LVR position
- a highlight the relevant risks. Include transactional, economic and personal risks and how they can bemitigated
- any other information that is relevant to assist the lender provide an approval
- your comments and recommendations
- a list of the documents that you would attach in your written submission. (You can assume that youhave all of the necessary approvals for the construction and have obtained a valuation).