Submitting an Application hand book. the Mortgage House way

Transcription

1 Submitting an Application hand book the Mortgage House way 1

2 After completing the e-interview Generate the Borrowing Capacity Guide Be intimate with entire content (Refer to Borrowing Capacity hand book) 2

3 Follow the script and generate the Documentation Checklist or Pre Approval Letter Refer to the Pre Approval Letter hand book or the Documentation Checklist hand book for a detailed process specification Select the Continue button 3

4 To formally lodge an application, you will need to complete: Systematic NCCP Act compliance Record of Interview with the Customer (wants and needs, etc.) Safe guard against future claims of unsuitable loan placement Formalised initial meeting road map Retail Customer Record Form Actionable Credit Submission Form Accurate and complete loan submission Proactively steer the loan submission to a quick approval One submission basis to reduce RFI s Quick settlement 4

5 Retail Customer Record (RCR) Form Location: Document Manager, Document Library, Interview and Scenario Stage 5

6 Accuracy is the key Don t assume, ask the Customer about their current wants/needs, and their future intentions (e.g. looking for a new job, etc.) This becomes a legal document upon completion 6

7 Significant changes in the future Investigate the Customer s personal circumstances and document them in this section It is the loan writer s responsibility to make it their business to understand the true position of the Customer Complete this section by asking the questions from the form and documenting the responses 7

8 Refinances See Borrowing Capacity Guide to obtain the Proposed details for the new loan The intention is to reduce the Customer s interest expense If Customer is refinancing to a higher interest rate loan, understand and document why this is the case (product features, etc.) Ensure that any excessive exit fees (e.g. break costs) are documented and accommodated for when calculating surplus available at settlement Obtain factual data from existing loan contract, or a payout figure 8

9 Borrower s Requirements & Objectives In the lead process, you would have been prompted to enter a comment detailing the Borrower s Requirements & Objectives Copy/ Paste the time and date stamp from the above comment into the space provided Enter the lead number where this comment is saved 9

10 In conclusion Complete the acknowledgement Electronically sign Image the completed RCR, whilst sending the comment to Sales Updates 10

11 Actionable Credit Submission (ACS) Form Location: Document Manager, Document Library, Refer to relevant product section 11

12 Quick turnaround times are a balance of high quality submissions and efficient processing: Incomplete submission Quick settlement 12

13 Submission quality dictates turnaround times Efficient processing through Operational Departments All supporting documents imaged in full colour under correct Doc Type ACS completed in full 13

14 How to Follow the how to use this document box at the beginning of the ACS for guidance 14

15 Section 1 Customer Meeting Record Click here to go back to the Retail Customer Record section for more information 15

16 Section 2 e-interview Refer to e-interview hand book for a detailed process specification 16

17 House keeping Submission notes explaining the application are mandatory Copy and paste the actual comment time/ date stamp into the section provided 17

18 Instant credit based business rule(s) feedback! The methodology of the Borrowing Capacity Guide is used in formal approval assessment There are hundreds of credit policy rules built in to the system (e.g. if policy excludes casual income where employment is less than 12 months, this income will not transpose into servicing assessment) 18

19 Cloud credit - Cyberspace If the loan amount does not service here, it will not service when lodged Read the Review Required section and ensure that all items have been actioned (failure to do so will result in an in accurate servicing result) If used accurately, you can conduct a pre-lodgement credit assessment instantly 19

20 Always Refer to the Borrowing Capacity Guide hand book for a detailed process specification 20

21 Prerequisites Generate the Best Interest Rate Mortgage Calculator This will provide a test to ensure that the product offered is the cheapest (comparison) rate we can offer for the client s loan amount and LVR sought Image the result 21

22 Prerequisites Generate the Home Loan Comparison Calculator This will provide a comparison of the cheapest (comparison) rate we can offer, to either: another Mortgage House product the client s existing home loan product Image the result 22

23 Section 3 Application Form Generate the application form from Document Manager Having completed the e-interview accurately, all names, addresses, etc. would have been copied from core documents such as a passport Customer(s) to sign the completed application form Complete the Funds Position 23

24 Unacceptable: Manual amendments to the Application Form Replacing pages within the Application Form with ones printed at a later point in time The use of liquid paper or white out Applications signed more than 1 month from submission 24

25 Section 4 Credit History Ask the Customer(s) whether they have any adverse credit (e.g. defaults) or current directorships, or if they have applied for finance recently 25

26 If adverse credit criteria exists, image: Written and signed explanation of the circumstances around the listing, Evidence that it has been paid/ settled, if the credit report is not updated to reflect same Compelling reason bringing comfort to the Lender as to assure of it s nonreoccurrence 26

27 If current directorships exist, obtain and image either: Last 2 years Tax Returns for each current directorship, including corresponding years Profit & Loss and Balance Sheet statements A signed letter from a Registered Tax Agent confirming that the each company is trading at a profit, or no longer trading with no outstanding liabilities 27

28 If recent applications for credit made: Document the reason for the application finance and the outcome of the enquiry in submission comments 28

29 Section 5 Identification Obtain a completed Details Verification form from Document Manager Having completed the e-interview accurately, all names structures would have been copied from core documents such as a passport Complete an Applicant Details Verification form for each individual attached to the application Complete a Company Details Verification form for each company attached to the application 29

30 Important You are required to physically sight original identification documents in order to complete the Details Verification Forms See end of the form 30

31 House keeping Full colour images of Identification required validating the full name structure (no copies or faxes) Identification should not be expiredfollow the Applicant Details Verification form for guidance on acceptable age of documents Ensure copies of identification are not cut off All letters and digits should be visible, and you need to be able to see the photo 31

32 Things you should know Access a pre-filled Applicant Details Verification Form from Document Manager to proceed If the Customer name varies from document to document, attempt to identify the client via another option in the one full name, e.g. Passport = John Smith Driver s licence = John James Smith In this case, option A has been attempted but failed Seek to identify the client by using any number of combinations in option B (preferably the full name, however either name would be acceptable) 32

33 Inconsistencies: If you have followed the previous step, you would have arrived at a name structure for the Customer Where the name structure does not match title: Property Purchase: the Contract of Sale will need to be amended Existing Property: ensure that the individual who has been identified is the same person registered on title, and include a note in the submission comment that title will need to be updated 33

34 Section 6 PAYG Full Doc applicants Pay careful attention to payslips and letters of employment to ensure that they are dated within 1 month Check the YTD figure- does it make sense compared to duration of employment? Ensure Applicant name, Employer name and ABN evident Check the payslips for any deductionsif they exist, ensure they are contained in the application form as a liability Ensure the YTD figure is visible 34

35 House keeping Obtain last 2 year s PAYG Payment Summaries where additional components of income are required for servicing (e.g. overtime, commission, bonuses) where LMI is required Where income documents are hand written and/ or inconsistencies exist, seek and image: Last 3 months account statements showing employer salary credits Latest financial year s Tax Assessment Notice 35

36 Helpful hint Always remove Tax File Numbers (TFN s) before imaging any documents If TFN s are visible, you will be asked to have them removed via a Help Request, and then re-image the document/s 36

37 Section 7 Self Employed Full Doc applicants The earlier year s financials should be no more than 18 months old E.g. if 2008 and 2009 Tax Returns are provided, they will expire on 1 January 2010, where 2009 and 2010 Tax Returns will be required Verify that any corresponding business Tax Returns cover the same 2 financial year s as the Individual Tax Returns provided The latest financial year s tax assessment notice needs to of the latest Tax Return financial year 37

38 Section 8 Self Employed Lo Doc applicants Ensure that the accountant s declaration is completed on the 2 nd page of the Lo Doc Declaration Check the GST registration against the ACS requirements Include the historical search of the ABN to confirm it has been actively registered for the last 2 years If LVR exceeds 60%, check to ensure the loan purpose is accommodate via the product specifications (including LMI criteria) Where this is not the case, an accountant s letter will be required to confirm why this is the case 38

39 Section 9 Other Income This may include: Current Centrelink statement Current real estate agent s statement or lease agreement Last 2 year s Individual Tax Returns for share income/ dividends/ investments Current Superannuation statement 39

40 Section 10 Property Purchases Request the front page of the Contract of Sale, along with any/all conditions and annexure(s) These may alter the assessable security value 40

41 Funds to complete: See bottom of the first page of application form, may include: 41

42 Genuine savings House keeping Copy of latest 6 months statements where genuine savings are required to be evidenced, generally > 80% LVR, for Advantage loans Must represent 5% of the purchase price in the latest statements Check debits and credits and ensure that there are no inconsistencies with the debts and incomes declared in the application form If they exist, update the application and regenerate for signing Ensure that all pages of the statement are provided/ imaged in order Imaged in chronological order (oldest to newest) so it flows Clarify source of large any lump sum deposits 42

43 Genuine savings House keeping Copy of latest 3 months statements where genuine savings are required to be evidenced, generally > 80% LVR, for non Advantage loans Must represent 5% of the purchase price in the latest statements Check debits and credits and ensure that there are no inconsistencies with the debts and incomes declared in the application form If they exist, update the application and regenerate for signing Ensure that all pages of the statement are provided/ imaged in order Imaged in chronological order (oldest to newest) so it flows Clarify source of large any lump sum deposits 43

44 Genuine savings House keeping Copy of latest original savings/ term deposit account statement Copy of an original statement (showing account number/s and Applicant/s names imaged) where internet statements are provided Copy of deposit paid receipt, and corresponding account statement showing where deposit came from Copy of property sale contract and written confirmation from solicitor advising the net sale proceeds available to the Applicant(s) 44

45 More Gift Policy Statutory Declaration (Form 2507E) where a gift is being received Completed and signed FHOG application form, and required supporting documents Other loan refinance/ Increase formal approval 45

46 Caution If no agent is acting on the purchase, ascertain why this is the case and include in your submission notes 46

47 Section 11 Refinances/ Existing Property as Security Ensure statements end no more than 1 month from submission Validate that Customer name and account numbers are evident Ensure that all pages of the statement are provided (e.g. page 1 of 3, page 2 of 3, page 3 of 3) 47

48 House keeping Image in chronological order (oldest to newest) so it flows Check debits and credits and ensure that there are no inconsistencies with the debts and income declared in the application form If they exist, update the application and regenerate for signing 48

49 Be prepared Request a written and signed explanation has been provided for any adverse entries e.g. reversals, late fees, dishonours, over limit instances, etc Also ensure that evidence that the account has been brought back into order is imaged 49

50 Internet statements Image of original statement(s) showing account number(s) and applicant(s) names 50

51 Section 12 Cash out/equity Release funds are released direct to Applicant Only include a breakdown of funds which will be released direct to Customer at settlement E.g. Consolidation of a credit card is not cash out/equity release Ensure that all surplus funds have been accounted for in this section to avoid delays 51

52 Section 13 Construction loans Load the security value into the system as the cost to construct plus land value (purchase price or estimate if land is already owned) Cost to construct should include all variations Pre approvals can be considered where the land and/or construction cost has not yet been finalised or documented Liaise with the Customer to ensure that they have sufficient funds to inject into the loan before first draw down 52

53 Avoid a shortfall: Usually the full construction cost less deposit paid to builder will be retained by the lender, e.g. Land purchase price $150,000 + Construction cost $200,000 = Security value of $350,000 LVR of 90% = Loan of $315,000 Funds available at land settlement calculated as $315,000 - Construction cost $200,000 = $115,000 Note that this is not 90% of the Land purchase price 53

54 Section 14 Reduced Equity Fee (REF) Policy via 1 st Rate Mortgage Reduced Equity Fee policy is available via the 1 st Rate Mortgage range It is basically a replacement of LMI from 80%-90% Complete the REF Checklist as directed for eligibility criteria 54

55 Section 15 External Lender specific Completed where the loan is being lodged to an external Lender Complete a Finance Broking Contract for all loans (not required for Mortgage House loan products) 55

56 Interviewer Declaration Complete this section accurately If you have not met with Customer(s) at this stage, or have not sighted original supporting documentation, tick the appropriate box to signal This should be avoided in all cases, as you will be required to undertake these steps prior to settlement NCCP Act requires for this to be undertaken 56

57 In conclusion Complete the acknowledgement Electronically sign Image the completed ACS 57

58 It s now time to, electronically submit the application: 58

59 You are now ready to formally lodge your application: Simply enter a comment to Sales Support advising that a new submission is ready for assessment You have now formally lodged your submission for assessment 59

60 INTELLECTUAL PROPERTY STATEMENT AND DISCLAIMER The information presented is current at the time of printing and may at the sole discretion of Mortgage House, change without notice. All logos, graphics, text and information is owned by, or licensed to; Mortgage House Pty Ltd ACN and is subject to copyright. 60