Task 3 Implement complex loan structures

Rahn and Deepa have accepted your recommendations and have given you authority to proceed with their application.

As part of implementing their loan application you are required to prepare a formal written loan submissionto the lender for pre-approval.

Note:Lender templates, credit policies and submission requirements vary from lender to lender. For this task, you can use thetemplate called 'Credit Memorandum'(or follow the structure as a guide)and/or any of the other example tables provided in theToolbox.

Your loan submission must include:

details of borrower and their contact details

borrowers' backgrounds including ability to manage project or possible use of building expert

an overview of the proposal what the finance is for the proposed structure and loan recommended. Include:

- product types

- deposit amount (if required)

- loan amounts

- terms

- interest rates

- interest repayments

full details of the security being offered

a funds-to-complete table, include statutory costs and any relevant fees

- theloan for the two remaining units (loan amount will be 80% of the completion value)

- outline the debt servicing position

- the projected rental income

- interest only repayments

- the security and LVR position

a highlight the relevant risks. Include transactional, economic and personal risks and how they can bemitigated

any other information that is relevant to assist the lender provide an approval

your comments and recommendations

a list of the documents that you would attach in your written submission. (You can assume that youhave all of the necessary approvals for the construction and have obtained a valuation).

(800 words)

Notes: Any assumptions you make should be listed, and not be in conflict with the case study information already provided.

You are to write a formal submission to the lender, or complete a word document template and copy and paste into the student response box.