question archive This task will require you to assume the role of a credit assessor who is making a recommendation to their supervisor for approval of the loan application being assessed
This task will require you to assume the role of a credit assessor who is making a recommendation to their supervisor for approval of the loan application being assessed
Subject:BusinessPrice: Bought3
This task will require you to assume the role of a credit assessor who is making a recommendation to their supervisor for approval of the loan application being assessed.
This will require you to provide a detailed analysis of your research into the applicant and their industry (based on case study background), your findings and risk analysis for the lender.
Verification of the applicant's information and supporting documents includes testing and checking the integrity of information supplied.
1. Using the the information in the case study, check the legal entity of the business and identify which Australian Business Number (ABN) is correct:
(a) 64-123-241-193
(b) 64-123-123-123
(c) 64-123-123-163
Student response to Task 4b: Question 1
Answer here
2. Identify two legislative requirements that should be reviewed to test and check compliance with identification processes for commercial borrowers.
Student response to Task 4b: Question 2
Answer here
3. What sources could you rely on to verify the financial data supplied by the client?
Note: As this is a case study only, you will need to explain where you would source the information, what processes you use to verify the financial data.
Student response to Task 4b: Question 3
Answer here
4. Following your review on the borrower's cashflow, provide a summary in the table below, by comparing current and future (projected) cashflow position after the new loan; and any cashflow impact it may have for the applicant.
Student response to Task 4b: Question 4
Current financial year
Current year projected
Current year net income after tax
Answer here
Projected net income after tax
Answer here
Rental add back
Answer here
Add back rent
Answer here
Less new loan
Answer here
Less new loan
Answer here
Net surplus cash flow
Answer here
Net surplus income
Answer here
Cashflow impact:
Answer here
5. Detail the security instrument to be used for this transaction and what impact this may have on the business.
Student response to Task 4b: Question 5
Answer here
6. Outline any legal or other complex requirements identified
Student response to Task 4b: Question 6
Answer here
(Task 4b questions 1-6, 500 words)
Notes: To complete this task you will need to refer to the Toolbox and sections True Blue Pty Ltd trading as True Blue Real Estate and 'Lending organisation's guidelines, policies and procedures, Legislative requirements, Loan verification and audit standards' document found in the Toolbox. You may also need to conduct your own independent research to answer these questions.
Assessor feedback for Task 4b — Detailing Analysis Findings:
(Insert Feedback)
Question(s) that need to be resubmitted (if required)
(List question numbers)
First submission
Not yet demonstrated
Resubmission (if required)
Not applicable
Section 3: Improving practice performance
Note: You only need to complete Section 1 or Section 2 tasks 1-4 in this assignment, plus Section 3 task 5.
Task 5 - Develop, research and monitor plans to improve performance
As the owner of your mortgage brokerage practice, you have decided to undertake a review of the business and its processes with the objective: to improve its overall performance for the practice.
1. To achieve this, you will initially need to conduct some research on the internet. Reference sites are located in the Toolbox in the section: Improving practice performance. Once research is completed, you are required to develop and document your plans to introduce the new improvement into the practice. To do this, fill in the table below:
Student response to Task 5: Question 1
Goals
Current position
Improvements
Answer here
Answer here
Answer here
Performance
Current position
Improvements
Answer here
Answer here
Answer here
Using data
Current position
Improvements
Answer here
Answer here
Answer here
Document
Current position
Improvements
Answer here
Answer here
Answer here
2. While conducting this research you found that your credit representatives are failing to input all the essential data and document requirements into the aggregator software platform following a software upgrade. To avoid any potential breaches in compliance, provide an effective method you may use to negotiate an acceptable timeframe with the credit representatives to implement these new software processes.
Student response to Task 5: Question 2
Answer here
2. To monitor the progress of these changes you negotiated in question 2 above — with the credit representatives, complete the monitoring improvements table below:
