Task 18 Assessing the clients' situation

Based on the information gathered in the initial client meeting with Philip and Jennifer Brown (see Case Study 1) and any other online tools used, you now need toassess theclients' loan application, paying particular attention that you have met regulations, legislative requirements, followed industry codes of practice, and met lender credit policy.

Provide data to support your comments and conclusions.

Note: You will need to use thisassessment of the clients' needs to complete Part 2 of your OralAssignment.

Task 18: Question 1

Assume you have conducted your initial face-to-face meeting and have provided and sought the necessary information from your clients. Explain a minimum of three (3) regulatory and legislative requirements that you have met so far in dealing with this application. Include the documents you would have provided to the client in the initial meeting.

Note: You are not charging a fee for service to your client.

Task 18: Question 2

As part of assessing the clients' situation, a broker is required to determine the approximate cost of LMI.

(a) Will Jennifer and Philip be required to pay LMI and why or why not?

(b) If so, what would the premium be?

(c) What two (2) options are available to borrowers to pay the LMI fee?

Hint/Tip:

The calculators are located inthe Toolbox. Also, for the purposes of this assignment, you may use the LMI premium excluding stamp duty.