Westpac Banking Corporation · ASX:WBC
Westpac Banking — Westpac Broker Webinar (January 2016)
48 slides from Westpac Banking's conference presentation, January 2016
Slide 1: Westpac Broker Webinar
Westpac Broker Webinar Welcome and thankyou for attending this webinar. The meeting will start shortly. Please read the following important information: Please note: You must join the teleconference via phone to hear the presentation. VOIP is not supported. • Please refer to the meeting invitation e
Slide 2: Income Verification
INCOME VERIFICATION JASON HEWETT CREDIT MANAGER CONSUMER BANK CREDIT JANUARY 2016 Westpac Banking Corporation ABN 33 007 457 141.
Slide 3: Introduction
Introduction Mortgage Credit Team tools/resources: • Introducer Net – Policy link o A copy of this presentation will be available after all webinars have been completed • Credit Hotline 1300 130 928 (option 1, then option 4) Disclaimer: • Policy is current as of 30th January 2016 for Westpac • Polic
Slide 4: Introduction (cont)
Introduction (cont)… • Income Policy within the mortgage space has recently been updated to reflect the Risk Appetite of the Westpac Group and that of the broader Australian banking community and the banking regulators • This is to ensure compliance with regulatory guidelines and provide greater ind
Slide 5: Policy Communication
Policy Communication 5 | Income Verification
Slide 6: Policy Communication
Policy Communication 6 | Income Verification
Slide 7: Key Changes – Definitions
Key Changes – Definitions Base Consistent income across each pay cycle. May be noted as - but not limited to - ‘Salary’, ‘Wages’, ‘Ordinary’ or ‘Normal’ on the payslip. Hours worked are generally consistent in each pay cycle. Non-Base Income additional to Base, including Bonus, Car allowance, Commis
Slide 8: Key Changes – Definitions
Key Changes – Definitions Group 1A income document A Year to date (YTD) payslip or 2 consecutive payslips. Group 1B Income Document Bank statements showing the 2 most recent salary credits, this is only valid for casual income. Note: Employer letters are no longer acceptable to verify income, they a
Slide 9: Key Changes (Verification)
Key Changes (Verification) The income verification matrix has been updated to: • Assess base income at 100% (unchanged) And • Assess salary and wage income over and above base (or ‘non-base’) income at 80% 9 | Income Verification
Slide 10: Key Changes (Bonus)
Key Changes (Bonus) Bonus income is treated as ‘non-base’ income. • Previous requirements for acceptance of Bonus income in terms of also obtaining an employers’ letter confirming bonus is a regular performance payment, as well as requiring referral to Credit where the bonus amount exceeds $30k per
Slide 11: Key Changes (unchanged income)
Key Changes (unchanged income) There is no change to income calculation or documentation required for: • Investment income • Social security income • Self employed income (including Fast Track) • Foreign income (which must be base income only). Please ensure you are checking the Income Verification
Slide 12: Income Verification Matrix
Income Verification Matrix 12 | Income Verification
Slide 13: Income Verification Matrix
Income Verification Matrix 13 | Income Verification
Slide 14: Income Verification Matrix
Income Verification Matrix 14 | Income Verification
Slide 15: Income Verification Matrix
Income Verification Matrix 15 | Income Verification
Slide 16: Assess/Serviceability Calculator
Assess/Serviceability Calculator 16 | Income Verification
Slide 17: Assess/Serviceability Calculator
Assess/Serviceability Calculator 17 | Income Verification
Slide 18: Assess/Serviceability Calculator
Assess/Serviceability Calculator 18 | Income Verification
Slide 19: Base Income
BASE INCOME Westpac Banking Corporation ABN 33 007 457 141.
Slide 20: Income Example 1 - Base Income
Income Example 1 - Base Income 20 | Income Verification
Slide 21: Income Example 1 - Base Income
Income Example 1 - Base Income Base income: $110 sick leave +$3190 ‘Ordinary’ =$3300 per f/n x 26 weeks = $85800 gross pa. Uniform Allowance is not being used here (non- base income) 21 | Income Verification
Slide 22: Income Example 1 - Base Income
Income Example 1 - Base Income Payslip has YTD figures covering the last 2 pay cycles 22 | Income Verification
Slide 23: Income Example 1 - Base Income
Income Example 1 - Base Income Input the Gross annual income in to the Assess Calculator. The calculator will then advise the net per month income to be input in to the system. 23 | Income Verification
Slide 24: Base & Non-Base Income (Payslip Covers 3 Months)
BASE & NON-BASE INCOME (PAYSLIP COVERS 3 MONTHS) Westpac Banking Corporation ABN 33 007 457 141.
Slide 25: Income Example 2 - Base and Non-Base Income
Income Example 2 - Base and Non-Base Income (Payslip covers 3 months) 25 | Income Verification
Slide 26: Income Example 2 - Base and Non-Base Income
Income Example 2 - Base and Non-Base Income (Payslip covers 3 months) Total Base income $2566.26 + $285.14 = $2851.40 fortnight Note: Salary Sacrifice should be investigated If there is a liability this need to be loaded in the system Year-to-date Income Figures (to be used with YTD income calculato
Slide 27: Income Example 2 - Base and Non-Base Income
Income Example 2 - Base and Non-Base Income (Payslip covers 3 months) 27 | Income Verification
Slide 28: Income Example 2 - Base and Non-Base Income
Income Example 2 - Base and Non-Base Income (Payslip covers 3 months) 28 | Income Verification
Slide 29: Income Example 2 - Base and Non-Base Income
Income Example 2 - Base and Non-Base Income (Payslip covers 3 months) 29 | Income Verification
Slide 30: Income Example 2 - Base and Non-Base Income
Income Example 2 - Base and Non-Base Income (Payslip covers 3 months) 30 | Income Verification
Slide 31: Income Example 2 - Base and Non-Base Income
Income Example 2 - Base and Non-Base Income (Payslip covers 3 months) Annualised YTD income has now pre-filled, however we still need to input the base income to the left to ensure the bottom section returns the correct income results 31 | Income Verification
Slide 32: Income Example 2 - Base and Non-Base Income
Income Example 2 - Base and Non-Base Income (Payslip covers 3 months) With the base fortnightly income now input to the left, the bottom section now shows • Annual gross Base income • Base net per month • Gross net per month (incl. non- base) to be input in to the system 32 | Income Verification
Slide 33: Base & Non-Base Income (No YTD Figures)
BASE & NON-BASE INCOME (NO YTD FIGURES OR PAYSLIP DOES NOT COVER 3 MONTHS) Westpac Banking Corporation ABN 33 007 457 141.
Slide 34: Income Example 3 - Base and Non-Base Income
Income Example 3 - Base and Non-Base Income (No YTD figures or payslip does not cover 3 months) 34 | Income Verification
Slide 35: Income Example 3a - Family Employee
Income Example 3a - Family Employee Key Changes for Family Employee: • Must be verified per “BASE AND NON-BASE INCOME - NO YTD SHOWN OR PAYSLIP NOT COVERING MINIMUM 3 MONTHS” policy regardless if payslip has or has not a YTD shown or covers 3 months • Group 2 document must be Latest tax return and A
Slide 36: Income Example 3 - Base and Non-Base Income
Income Example 3 - Base and Non-Base Income (No YTD figures or payslip does not cover 3 months) 36 | Income Verification
Slide 37: Income Example 3 - Base and Non-Base Income
Income Example 3 - Base and Non-Base Income (No YTD figures or payslip does not cover 3 months) On this Payment Summary you would total: - Gross Payments - Reportable Employer Superannuation Contributions (RESC) - Total Allowances To obtain the total gross annual income. Note: Any ‘Reportable fringe
Slide 38: Income Example 3 - Base and Non-Base Income
Income Example 3 - Base and Non-Base Income (No YTD figures or payslip does not cover 3 months) 38 | Income Verification
Slide 39: Income Example 3 - Base and Non-Base Income
Income Example 3 - Base and Non-Base Income (No YTD figures or payslip does not cover 3 months) 39 | Income Verification
Slide 40: Income Example 3 - Base and Non-Base Income
Income Example 3 - Base and Non-Base Income (No YTD figures or payslip does not cover 3 months) 40 | Income Verification
Slide 41: Income Example 3 - Base and Non-Base Income
Income Example 3 - Base and Non-Base Income (No YTD figures or payslip does not cover 3 months) 41 | Income Verification
Slide 42: Income Example 3 - Base and Non-Base Income
Income Example 3 - Base and Non-Base Income (No YTD figures or payslip does not cover 3 months) 1. Enter Payslip Information here 2. Enter group 2 document details here 3. Once Group 1A and Group 2 information has been input, income details to be entered in to the system will be listed at the bottom
Slide 43: Casual Income
CASUAL INCOME Westpac Banking Corporation ABN 33 007 457 141.
Slide 44: Income Example 4 - Casual Income
Income Example 4 - Casual Income 44 | Income Verification
Slide 45: Income Example 4 - Casual Income
Income Example 4 - Casual Income Casual income remains similar to the previous policy, however the following items are to be noted: • Removal of employer letter as an acceptable income document • Casual teachers are to have their income annualised over 40 weeks In this example we have a casual teach
Slide 46: Income Example 4 - Casual Income
Income Example 4 - Casual Income 46 | Income Verification
Slide 47: Income Example 4 - Casual Income
Income Example 4 - 2. Input Group 2 Casual Income income information here 1. Enter salary credit information here. Note: 40 Weeks selected for a teacher 3. Income details to be input in to the system 47 | Income Verification
Slide 48: Questions?
Questions? 48 | Income Verification
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