You must demonstrate that you have made a reasonable attempt to answer all of the questions in1 your written assignment. Failure to do so will mean that your assignment will not be accepted for marking; therefore you will not receive the benefit of feedback on your submission.
If you do not meet these requirements, you will be notified. You will then have until your submission deadline to submit your completed written and oral assignment.
Your assessor will follow the below process when marking your written assignment:
1. Assess your responses to each question, and sub-parts if applicable, and then determine whether you have demonstrated competence in each question.
2. Determine if, on a holistic basis, your responses to the questions have demonstrated overall competence.
Task 1 — Key terms, gathering and documenting client information
1. Complete the ‘Key terms’ (located at the end of the written assignment in Appendix 1).
2. Using the information provided in Case study 1, complete the ‘Client information collection tool’ (located at the end of the written assignment in Appendix 2).
3. You will also need to complete the Genworth Serviceability Calculator to assess the security, debt service and borrowing capacity for Jennifer and Phillip Brown. To do this, follow these steps:
(a) Use the details in Case study 1.
(b) Read the Genworth Calculator Supplementary Material Guide available in the Kaplearn CIVMBv5 subject room.
(c) Process the loan application using the Genworth Serviceability Calculator accessible here:
(d) Once you have processed it, download a copy of the PDF and save it to your desktop.
Task 2 — Assessing the clients’ situation
1. Based on the information provided in the case study and any other online tools used, you now need to assess the clients’ loan application paying particular attention that you have met legislative requirements, followed industry codes of practice and met lender credit policy.
Comment on issues such as:
• does it appear to meet legislative requirements (e.g. NCCP)
• maximum borrowing capacity of client
• capacity to meet deposit and total cash contribution for the loan required
• repayment requirements based on the loan required
• what the security will be and if it is appropriate
• do Jennifer and Phillip require Lenders Mortgage Insurance (LMI), and if so, how much will it cost and what are the options to pay the fee
• what loan amount would you recommend, and why
• likelihood that the clients will be able to meet all their financial obligations
• do Jennifer and Philip qualify for concessions on any of the fees and charges
• any other issues that may impact, now or in the future, on the clients’ ability to meet their obligations, including any possible risks.
Provide data to support your comments and conclusions. (450 words)
Note: The assessment of the clients’ needs is a critical prelude to you completing Part 4 of the Oral assignment requirement for this course.
2. Most lenders stress test loan repayments by adding an additional 2–3% on to the loan repayments to make sure a borrower can afford the repayments. If interest rates moved 3% higher, what would Philip and Jennifer’s loan repayments be and do you think they would be able to cope with the extra repayments? (100 words)
3. Identify appropriate product options you can present to the clients that may remove this interest rate risk?