AMP Bank
Version 5: January 2012
This document is for AMP Bank Distributor use only.
AMP Bank Limited ABN 15 081 596 009, Australian credit licence 234517, AFSL No. 234517.
NS4132 01/12
Accreditation Test
Accreditation workbook overview
Audience
This workbook does not include detailed information relating to
products or policies. Where appropriate, to answer questions and
complete activities within this workbook, the following reference
material will be required to refer to:
–– AMP Bank Features at a Glance - refer to
amp.com.au/distributor - Accreditation.
–– AMP Bank Lending Quick Reference Guide - refer to
amp.com.au/distributor - Accreditation.
–– AMP Bank Accreditation Pack.
–– Rapid pay calculator - refer to amp.com.au/bank - Calculator
- Home Loan Calculators.
The Accreditation workbook is designed to assist Originators to
be accredited in AMP Bank products.
Purpose
The purpose of this workbook is to guide Originators through a
series of questions and activities to research and assess your
knowledge of AMP Bank products, policy and process in writing
Home Loans.
Completion of all units in this workbook and a successful pass
mark of 90% will provide you with the accreditation to write
AMP Bank Home Loans.
Further information is available at amp.com.au/distributor.
Contents
Accreditation workbook overview
2
Unit 1 - Loan terms, terminology, interest
rates and repayments
3
Unit 2 - Asset product features
4
Unit 3 - Compliance
6
Unit 4 - Getting Started kit
7
AMP Bank
This training material was developed by AMP Bank to aid training of our products and associated processes within the business.
This workbook may be reproduced or copied for internal AMP Bank use only. Any other reproduction or copying in any form or by any means,
(graphic, electronic or mechanical, including photocopying or by information retrieval system) for use other than within AMP Bank, without
permission in writing is strictly prohibited.
2
Unit
1
1. Loan terms, terminology, interest rates and repayments
Please use the Accreditation Answer Sheet to complete your answers.
Note: Some questions may have multiple answers.
1. AMP Bank offers which of the following loan terms for variable and fixed rate loans non-business purposes?
a)Minimum 5 years maximum 25 years
b)Minimum 10 years maximum 25 years
c)Minimum 10 years maximum 30 years
d)Minimum 5 years maximum 30 years
2. Which of the following is correct?
a)Interest only loans are repayable at the end of 5 years
b)Interest only loans convert to a principal and interest basis at the end of 5 years
c)The minimum loan size is $40,000, and the minimum for any split is $10,000
d)Customers can have up to 6 splits with their loans
3. How is interest calculated on all products?
a)Daily
b)Fortnightly
c)Monthly
4. How are repayments calculated on the Professional Pack line of credit for the first 10 years?
a)Interest only on the daily balance plus fees and charges
b)Interest only on the end of month balance plus fees and charges
c) Principal and interest on the daily balance plus fees and charges
5. What is Redraw?
a)Money credited to a loan account
b)Funds required to make loan payment
c)Surplus funds remaining after loan payments
3
Unit
2
2. Asset product features
1. Indicate which of the following products offer the Rapid Pay facility.
a)Introductory Variable Rate Loan
b)Fixed Rate Loan
c)Construction Loan
d) Professional Pack Variable Rate Loan
2. A customer may have an access card attached to a Professional Pack Variable Rate Loan or Classic Variable Rate Loan?
a) True
b)False
3. When can repayments be made on a Professional Pack Variable Rate or Basic Variable Rate Loan?
a) Weekly
b)Fortnightly
c)Monthly
d) Any of the above
4. What is the difference in fees between a Basic Variable Rate Loan and a Professional Pack Variable Rate Loan?
a) Professional pack has $349 annual fee
b) Basic has $75 split loan annual fee
c)No annual fee on basic
d) All of the above
5. What is the fee to switch to another product?
a) $350 plus break costs if breaking Fixed Rate Loan
b)Free at end of fixed rate period subject to written notice and provided you are not splitting the loan
c) There are no fees
d) All of the above
6. On which products can a customer have cheque book access?
a) Professional Pack Line of Credit, Classic Club Line of Credit and Business Classic Club Line of Credit
b) Professional Pack Variable Rate Loan, Basic Variable Loan
c)Fixed Rate Loan
d)Classic Variable Rate Loan
7. How can customers make cash deposits into their Line of Credit Account?
a) BankNet
b) BankFax
c) BankPhone
d) Australia Post (individual or Joint borrowers only)
8. Which of the following features are available on the Basic Variable Rate Loan?
a)Offset account available
b) Ability to make additional repayments without penalty
c) Access to available redraw via BankAssist
d) ATM Access Card
e) P&I or IO options
f)Cheque book
g)Information/view access via BankNet, IVR, BankPhone
9. What is the annual fee for Professional Pack membership?
a) $400.00 per annum
b) $349.00 per annum
c) $330.00 per annum
d) $300.00 per annum
10.Does the Professional Pack have tiered Interest rate discounts?
a)Yes
b)No
11.How much is the maximum additional repayments permitted on Professional Pack Fixed Rate Loans per annum?
4
a) $10,000.00 per annum
b) $5,000.00 per annum
c) $1,000.00 per annum
d)Unlimited
12.Which of the following features are correct for Construction Loans?
a) Variable interest rate applies for the term of construction
b)Construction is to be completed within 12 months
c)Interest only repayments apply for the period of construction
d) All of the above
13. To be eligible for the AMP Essential Home Loan, which of the criteria must the applicant meet?
a) IO repayments, Individual applicant, PAYE, single residential security property
b) Personal customers, PAYG, single residential security property, P&I repayments
c) Company/Trust applicants, PAYE, multiple security properties, P&I repayments
d) All of the above
14. Please select the features of the AMP Essential Home Loan Package
a)No ongoing monthly account management fees
b)Free redraw available via BankAssist for transactions over $2,000.00
c) BankNet and BankPhone view only access
d)Offset account
e) All of the above
15. Which products listed are available as part of the Low Doc Package offering?
a)Low Doc Line of Credit
b)Low Doc Variable P&I Loan
c)Low Doc Variable IO Loan
d)Low Doc 2 and 3 year Fixed Rate P&I Loan
e)Low Doc 1 and 5 year Fixed Rate IO Loan
16. How does the application process for a Low Doc Loan differ from the standard application process?
a) There is no difference between the application process for a standard Loan or Low Doc Loan
b)The income verification will differ as Low Doc Loan customer will self-certify their income and provide different types of
income verification documents
17. What is the Low Doc Package fee?
a) $375.00 per annum
b) $330.00 per annum
c) $300.00 per annum
d) $299.00 per annum
18.What is the Low Doc Settlement fee?
a) $550.00
b) $450.00
c) $350.00
d) $250.00
19.How many free transactions do you get with an AMP Offset Account?
a) 5
b) 10
c) 20
d)Unlimited
20.What loan products can the offset account be attached to?
a) Basic variable
b) Professional pack variable
c)Classic club variable
d) All of the above
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Unit
3
3. Compliance
1. Discrimination can be a serious issue. Which of the following is correct?
a)It does not matter if the discrimination is intentional or not
b) AMP Bank is permitted to decline a loan if an applicant has income from an unlawful activity
c)Originators can avoid discrimination by only asking questions relevant to assessing an applicant’s suitability
and eligibility for the financial service offered
d)Each applicant’s loan application must be treated on its own merits
e) All of the above
2. I mportant features of the Privacy Act. You must ensure that you hold the applicant’s/customer’s consent to disclose information prior to submitting an application for credit to AMP Bank.
a) True
b)False
3. Compliance training is very important. Which of the following is correct?
a)It reinforces policies and assists in preventing exposure to regulatory breaches and commercial risk
b)Standards set by applicable legislation are minimum standards
c)It is designed to promote honesty, fairness and efficiency
d)It only applies to Originators who have company structures
e) All of the above
4. I n carrying out AMP Bank’s customer identification procedures, you must use your best endeavours to properly identify each
applicant and comply with the procedures specified by AMP Bank from time to time.
a) True
b)False
5. W
hen processing a credit application, if you raise a suspicion in respect of the applicant’s/customer’s income or activities (eg tax evasion) you must inform your AMP Bank relationship manager.
a) True
b)False
6. You are able to sell and give advice on AMP Bank deposit products, under the Financial Services Reform Act.
a) True
b)False
7. I mportant features of the Code of Banking Practice. AMP Bank requires you to act fairly and reasonably towards applicants/customers and proposed guarantor in a consistent and
ethical manner.
6
a) True
b)False
Unit
4
4. Getting Started kit
1. Which of the following needs to be actioned when submitting an application to AMP Bank?
a)Supply a copy (or the original certified copy) of any identification document(s) utilised by you in
verifying the customer’s or signatory’s identity
b)Delete Tax File Number from tax returns
c)Complete Broker Fax sheet and auto assessment calculation form
d)Complete lodging of application either online or on a manual application form
2. If we are processing a refinance of a total of $270,000 and the valuation of the property is $400,000 what is the LVR?
a) 75%
b) 67.5%
c) 82%
3. Details on documents required to support income, may include:
a) Tax returns must be supported by at least one year’s ATO Assessment notice
b)Individual tax returns are required from company directors with an application for a loan in a company name
c)Copies of at least the last 2 years tax returns for a company or trust are required
d) Two computer generated payslips dated within 30 days are acceptable evidence of income for PAYG applications
e) All of the above
4. What documents and issues relating to loan application are required?
a)Copies of the last 6 months loan statements for existing loans or other evidence of prompt payment are required
b) The front page of a Contract for Sale is required for a property purchase
c)Existing loans must not be in arrears more than 30 days in the 6 months prior to the new loan application
d)Sale of shares is considered an acceptable form of savings
e)Originators must sign a loan application form confirming they have sighted the appropriate identification
f) All of the above
5. A
client wishes to borrow $300,000. The security is worth $400,000. Does the client need to pay Lenders Mortgage Insurance on a Professional Pack Loan?
a)Yes
b)No
6. During the loan interview, the Originator is responsible for.
a)Advising clients whether or not they meet AMP Bank’s threshold criteria, but without making any representation
that the loan will or will not be accepted
b)Identifying each home loan applicant and note identification details on the application
c) Providing factual answers to clients questions about particular features of AMP Bank Home Loans
d) All of the above
7. Which of the following are correct?
a) The loan must be processed through AMP ApplyOnline
b) A credit check is undertaken on all prospective applicants and guarantors
c)Supporting documentation is not required unless requested by AMP Bank after the application has been received
d)Supporting documentation can be faxed to AMP Bank on 1300 780 137 or emailed to new_business@ampbanking.com.au
e) All of the above
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8. Originators have responsibilities before and after settlement of the loan.
a)It is the Originator’s responsibility to organise the loan settlement
b) A change to a loan structure after settlement (eg loan increase) will incur new fees
c)Originators do not become involved in the settlement process.
8