Philip and Jennifer Brown Case Study - Finance Assignment Help

Assignment Task :

Case study 1 — Philip and Jennifer Brown 

Task 1 — Key terms, gathering and documenting client information
1. Complete the ‘Key term. Using the information provided in Case study 1, complete the ‘Client information collection tool’
2. 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) 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

      •    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.

Task 3 — Borrowing options

Although Philip and Jennifer are looking to borrow at approximately 90% LVR, what other options could you present that would avoid the cost of LMI?

Task 4 — Reasonable enquiries

In the course of gathering information about the couple, you are required under the National Consumer Credit Protection Act 2009 to make all ‘reasonable’ enquiries to determine a borrower’s objectives, requirements and financial situation.

Identify at least six (6) ‘reasonable’ enquiries that you would make with the clients in the case study and explain why these enquiries are important in terms of NCCP compliance.

Task 5 — First Home Owners Grant and home buyer assistance schemes

Describe the First Home Owner’s Grant or home buyer assistance scheme benefits and stamp duty concessions that are available in your State or Territory, who would be eligible and what would be their benefit? Are Philip and Jennifer eligible for any assistance?

Task 6 — Professional network and loan settlement process

1.  Name three (3) parties, who are not directly involved in the processing of a loan and what their role is. Explain how you would communicate with them in an efficient and effective manner so that they understand pre-settlement conditions and their involvement required.

2.  Explain how you would develop and maintain relevant networks with professionals such as those you detailed above or other professionals to ensure you are up to date with the products or services they provide

3.  You want to ensure that Philip and Jennifer have all the key insurance protections in place in case something unfortunate was to happen to one of them. What process would you follow during your discussion with the clients to ensure you have a good assessment of their needs?

4.  Briefly explain why it is important for the broker to remain informed of developments in the lending process despite not being actively involved at every stage.

Task 7 — Interest rates

1.   Conduct your own research and answer the following:

      (a)  What is the role of the RBA with respect to the movements of interest rates?

      (b)  Why is it important to have these controls and how do they impact mortgage loans in Australia?

      (c)   Are banks obliged to follow the RBA cash rate? Explain the reason for your answer.

2.  Philip and Jennifer from Case study 1, have called to discuss whether they should fix the interest rate on their loan after having received several conflicting viewpoints from family and friends.

      (a)  Explain the process you would use to research and identify the various product options available to meet the needs of Philip and Jennifer.

      (b)  Explain to Philip and Jennifer two (2) advantages and two (2) disadvantages of fixing a loan over different fixed rate terms.

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