Manual Servicing Calculator. User Manual. Training guide v1.0

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Cecil Russell
5 years ago
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1 Manual Servicing Calculator User Manual Training guide v1.0

Important: Before you start The MyState loan calculator is a Microsoft Excel Template.

without ever having to worry about saving over the original nor an existing calculator.

many fresh copies as required: Or simply double-click on the file (from your desktop or file

2 Important: Before you start The MyState loan calculator is a Microsoft Excel Template. A template is very useful as it allows you to create as many fresh (blank) calculators as you need without ever having to worry about saving over the original nor an existing calculator. With a template you can select New then Loan Service Calculator from My Templates to open up as many fresh copies as required: Or simply double-click on the file (from your desktop or file explorer) to open fresh blanks : Refer to Appendix I at the back of this document for the one-off first time setup of the template.

Manual Servicing Calculator As you will see we have made a major overhaul to the manual servicing calculator in relation to inputting the information.

First step is to make sure that you enable the Macros so that you are able to move between calculators if required. 2.

3 Manual Servicing Calculator As you will see we have made a major overhaul to the manual servicing calculator in relation to inputting the information. There is no change to the calculation or to the look of the calculator when printing. The following gives a run through of the information required when using the new calculator. 1. First step is to make sure that you enable the Macros so that you are able to move between calculators if required. 2. If you hover the mouse over the information symbol at the top of the page you will see an index showing what the different colours mean. There are also information symbols listed for most fields which give an indication of what is required to be input. Information Icon to show menu 3. Down the left hand side of the page you will notice some numbers that are in grey when the calculator is first opened. These numbers correspond to the progress in each section of the calculator and shows when each particular section has been completed satisfactorily. This detail is also reflected in a summary at the base of the calculator. Clicking on the summary indicators will take you to the selected section:

You will also note that at the bottom of the page you will still see the Serviceability results which will indicate if the loan passes or fails servicing There are various assessment ratios that are

4 You will also note that at the bottom of the page you will still see the Serviceability results which will indicate if the loan passes or fails servicing There are various assessment ratios that are required including the times cover and surplus amounts. Underneath this area the maximum borrowing amount will be displayed as well as shortcuts to various other calculators or websites. There is also a tick box at the bottom which will open up the classic view of the calculator which is the current calculator showing all of the information that has been entered. This is not able to be edited and if you realise there needs to be changes these can only be made through the front cover sheet. Progress summary Servicing results with explanations if failed Ratios and times cover Shortcuts to other calculators To access classic view

SECTION 1 APPLICANT DETAILS The first section requires the applicants details including dependants, marital status, postcode and also the household for expense purposes. 4.

5 SECTION 1 APPLICANT DETAILS The first section requires the applicants details including dependants, marital status, postcode and also the household for expense purposes. 4. The application is automatically set with one applicant. To add additional applicants you need to click on the icon next to add applicant. This will bring up the second applicant and also if required the option to add the third and fourth applicants. 5. If you add a more than one applicant you will need to complete the household information for expenses as different calculations occur if living at different addresses. Hint: If you are using a married couple and under applicant 1 you indicate they are a couple with applicant 2 then the details for applicant 2 automatically open. 6. If applicants live at different households you will notice that each applicant is shaded a different colour where if they re in same household each applicant has the same background colour. 7. Once you have completed the applicants details you will be able to move to the second step. This is shown when the progress line shows section 1 in green. (If you scroll to the bottom of the page you will also notice that in the progress summary number 1 has now turned green)

6 SECTION 2 PROPOSED NEW LOANS This section is where we are able to indicate the type of new loan that the applicants are applying for. There are choices for: Owner Occupied 2 splits Investment 4 splits COH Line of credit Overdraft only available to MyState retail lenders Personal Loan only available to MyState retail lenders Select required loan types 8. Once you select the required loan type and splits you will need to complete the details for the new loan. The details required are: Property value Off the plan Loan amount Type of loan (variable or fixed) Property security type Postcode Loan term Interest only term (if applicable) Interest rate 9. If you require additional security there is a tick box which will bring up more details and you can add the additional security and any associated debt to ensure the LVR is correct for the application.

10. If you are completing both and owner occupied loan and an investment loan and are using just

In this instance you will need to add the property value as 0 to ensure that the correct LVR is

If you select the COH Line of credit and this is a stand alone product, the additional security

7 10. If you are completing both and owner occupied loan and an investment loan and are using just the one security the calculator will bring up details asking for a second property value. In this instance you will need to add the property value as 0 to ensure that the correct LVR is calculated see second screenshot below Property value 2nd value listed as Nil 11. If you select the COH Line of credit and this is a stand alone product, the additional security section will be shown and will be required to be completed to obtain the LVR. New Loan Details Additional Security Final LVR

SECTION 3 INCOME DETAILS The same income details are entered as per previous calculators with access to include: Base required for all applications ($0 to be input if no base income provided) Rental

8 SECTION 3 INCOME DETAILS The same income details are entered as per previous calculators with access to include: Base required for all applications ($0 to be input if no base income provided) Rental Income Overtime Company profit/loss Commission Bonus/Dividends Other 12. Income details for Rent, Overtime, Company profit and Other are input as the total value under each applicant if applicable. When you open Bonus/Dividends and Commission you will be prompted to enter the details in the boxes below. As we require 2 years worth of details for these income types we have automated the system so that you need to enter Last Years amount and then the Previous Years amount and the correct amount will then be transferred to the income box. Base income must be completed including Nil Commission and Bonus populated here Enter 2 years Commission Enter 2 years Bonus Non Taxable Income can also be loaded with options available: Business Addbacks Family Assistance Pension Other Car Allowance (Automatically allocates $5,000 for each applicant if applicable) Next step is to complete the financial commitments. These are loaded as monthly amounts.

9 SECTION 4 EXISTING LOANS 13. The first question asked is Existing Mortgage Loans. If the answer is No you move onto the next question but if the answer is Yes then you will need to input how many loans the applicant has to open up the required information boxes. As per current requirements the information required depends on the type of loan (P&I or I/O) and whether a MyState loan or OFI. The information required is: Loan Purpose Loan Type Which applicants are associated with the loan The loan provider The loan amount The repayment amount Initial Loan Term Initial Interest Only term Current Interest Rate Once completed the progress bar will show green for section 4.

SECTION 5 OTHER COMMITMENTS Other commitments relate to any other lending that the applicants may have such as: Personal Loans Credit Cards Overdrafts Unsecured Lines of Credit Secured Lines of

10 SECTION 5 OTHER COMMITMENTS Other commitments relate to any other lending that the applicants may have such as: Personal Loans Credit Cards Overdrafts Unsecured Lines of Credit Secured Lines of Credit If the applicant have no other loans then uncheck the tick box which will complete section 5. If they do have these types of loans then complete the details as required. Uncheck box if no commitments or loans held

11 SECTION 6 LIVING EXPENSES AND OTHER MONTHLY COMMITMENTS 14. These need to be completed for all households and must also include Nil inputs to have the correct calculations completed The categories have altered slightly as there has been an update from LendFast and we have aligned these to make recording easier. The main change is that motor vehicle costs now will be entered under Other Living Expenses and there is a category for Medical and Health to cover doctors fees, pharmacy costs etc. You will also need to state the number of properties owned by the clients as this is an indication if they have allocated enough expenses to cover all properties costs such as rates and insurance. This should also include the property they are purchasing. We have separated owner occupied property and investment property expenses with the owner occupied included as part of living expense and the investment property expenses as a separate figure outside of living costs. Property costs such as rates, insurance, property management fees, body corporate fees, maintenance need to be included. You will also need to tick the check box as to whether the applicant has Private Health Insurance. If this is not checked and they are liable for Medicare surcharge an estimate for this amount will show further down the page. If you confirm that applicant does not have private health and is liable for Medicare surcharge this amount is to be input to the box above the estimate. If required you will also need to input rental expense or notional rent

12 Number of properties owned by applicants including new purchase if applicable Investment property expenses listed separate to owner occupied Medicare surcharge estimate if applicable (no private health noted) to be input

13 SECTION 7 VALIDATION OF EXPENSES Confirmation of expenses is vitally important as to whether an applicant is able to afford the loan. To ensure we have completed our due diligence we are now required to complete two validation questions. Until these are completed the servicing calculator will not be finished and provide a result. The two questions are: 1. Expenses were validated: Via a budget management tool Via bank statements By customer conversation 2. Can you confirm you have made reasonable inquiries and taken reasonable steps to verify all borrowers living expenses Yes No (if No is chosen, a justification must be provided in the appropriate field)

SERVICING POSITION After completion of the calculator and all information has been loaded the calculator will show the serviceability results.

You will need to complete these sections before obtaining a final outcome.

14 SERVICING POSITION After completion of the calculator and all information has been loaded the calculator will show the serviceability results. If there is any information missing or section not completed the Progress summary will not be all green and the incomplete sections will still be grey. You will need to complete these sections before obtaining a final outcome. Passes Servicing If all information is loaded and the details meet all of our policies then the progress summary will show all green and the servicing result will state Passes Servicing Fails Servicing If the application fails then an error message may appear detailing what section of policy that the deal does not meet. If there is an error message and you know the information loaded was incorrect you can return to that section and update the information. Message indicating policy requirement if servicing fails

15 Additional Hints: If any of the sections are not completed the progress summary for that section will show as grey and not have been updated to green as complete If you need to go back to any section (either not completed or requires changes) you can click on the required section number within the progress summary and you will be taken automatically to that section If you answer No to the second expense validation question you will not be able to proceed until you have completed the justification box on why you have not made reasonable inquiries into their expenses. If you move to complete/change other sections you will be taken back to the justification box. If you are utilising one of the attached calculators, please complete the information required and then to go back to the servicing calculator click on the House Icon which will take you back to the same place in the main calculator. The information from the additional calculators will not be transferred to the main calculator.

Appendix I Setting the calculator up as a template (one off first time setup) 1.

$Enter %appdata%\microsoft\templates into the address bar and press enter: 4.$ Loan Service calculator - MyState Bank) Select Save 6.

16 Appendix I Setting the calculator up as a template (one off first time setup) 1. Open the calculator 2. Before enabling content, select Save As 3. Enter %appdata%\microsoft\templates into the address bar and press enter: 4. This will take you to your Templates directory: 5. Enter a Filename if necessary (eg. Loan Service calculator - MyState Bank) Select Save 6. Click Enable Content and Save and you re done You can now click New, My Templates and open a fresh calculator anytime. If the above doesn t work, don t worry, you can just save a copy of the calculator to a convenient location (eg. Your desktop) and simply double click the icon to open a fresh calculator anytime.

ACS YEAR-END FREQUENTLY ASKED QUESTIONS. General Ledger

ACS YEAR-END FREQUENTLY ASKED QUESTIONS This document includes answers to frequently asked questions about the following ACS modules: General Ledger Payroll Accounts Payable Accounts Receivable General