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Certificate IV in Finance and Mortgage Broking (CFMB_AS_v2)

Student identification (student to complete)

Please complete the fields shaded grey.

Written assignment result (assessor to complete)

Result — first submission  
Parts that must be resubmitted
Result — resubmission (if applicable)  

Result summary (assessor to complete)

Feedback (assessor to complete)

[insert assessor feedback]

 

Before you begin

Read everything in this document before you start your written assignment.

About this document

This document is the written assignment — half of the overall written and oral assignment.

This document includes the following parts:

Instructions for completing and submitting this assignment

Section 1: Working in financial services

A case study with a series of short-answer questions:

– Task 1 — Key terms

– Task 2 — Establishing a level of financial knowledge

– Task 3 — Financial services legislation and industry codes of practice

– Task 4 — Products and services.

Section 2: Business skills

– Task 5 — Effective communication

– Task 6 — Professional development

– Task 7 — Customer service

– Task 8 — Respond and report on complaints

– Task 9 — Prospecting for new clients

– Task 10 — Professional networks

– Task 11 — Managing information.

Section 3: The lending process

A case study with a series of short-answer questions:

– Task 12 — Understanding the client’s needs

– Task 13 — Developing and presenting solutions

– Task 14 — Packaging the application to send to the lender

– Task 15 — Monitor the lending process.

Section 4: Case studies

– Task 16 — Case study — Purchasing an owner-occupied home

– Task 17 — Completing the Fact find

– Task 18 — Assessing the clients’ situation

– Task 19 — Presenting borrowing options and potential benefits

– Task 20 — Supporting the client to settlement

– Task 21 — Case study – Refinancing a home loan

– Task 22 — Preparing a preliminary assessment

– Task 23 — Case study – Purchasing an investment property

– Task 24 — Preparing a loan proposal

Task 25 — Loan contracts and security documentation

– Task 26 — Preparing the loan for settlement.

How to use the study plan

We recommend that you use the study plan for this subject to help you manage your time to complete the written assignment within your enrolment period. Your study plan is in the KapLearn Certificate IV in Finance and Mortgage Broking (CFMBv2) subject room.

Instructions for completing and submitting this written assignment

Saving your work

Download this document to your desktop, type your answers in the spaces provided and save your work regularly.

Use the template provided, as other formats will not be accepted for these assignments.

Name your file as follows: StudentNumber_SubjectCode_AS_versionNumber_SubmissionNumber (e.g. 12345678_CFMB_AS_v2_Submission1).

Include your student ID on the first page of the written assignment.

Before you submit your work, please do a spell check and proofread your work to ensure that everything is clear and unambiguous.

Word count

The word count shown with each question is indicative only. You will not be penalised for exceeding the suggested word count. Please do not include additional information which is outside the scope of the question.

Additional research

When completing the ‘Client information collection tools’, assumptions are permitted although they must not be in conflict with the information provided in the Case Studies. All assumptions must be noted.

You may be required to conduct your own research in addition to the topic notes provided to source information to answer some of the assignment questions. You may also be required to source additional information from other organisations within the finance industry to find the products or services to meet your client’s requirements, to source indicative interest rates and to calculate any fees and charges that may be applicable.

Submitting the written assignment

Only Microsoft Office compatible written assignments submitted in the Word template file will be accepted for marking by Kaplan Professional Education. You need to save and submit this entire document. Incomplete written assignments will be returned to you unmarked.

Do not remove any sections of the document.

Do not save your completed written assignment as a PDF.

The maximum file size for the is 20 MB. Once you submit your written assignment for marking you will be unable to make any further changes to it.

You are able to submit your written and oral assignment earlier than the deadline if you are confident you have completed all parts and have prepared a quality submission.

Please refer to the Assignment submission/resubmission videos in the ‘Assessment’ section of KapLearn under your ‘Assignment Enrolment’ for details on how to submit/resubmit your written assignment.

Note: Your written assignment (in Word), oral assignment (in Word) and audio recording must all be submitted together on or before your personal due date. Please check KapLearn for your due date.

The written assignment marking process

You have 26 weeks from the date of your activation in this subject to submit your completed written assignment.

If you reach the end of your initial enrolment period and have been deemed ‘Not yet demonstrated’ in one or more assessment items, then an additional four (4) weeks will be granted, provided you attempted all assessment tasks during the initial enrolment period.

Your assessor will mark your assignments and return it to you in the subject room in KapLearn under the .

Make a reasonable attempt

You must demonstrate that you have made a reasonable attempt to answer all of the questions in your written assignment. Failure to do so will mean that your written assignment will not be accepted for marking; therefore, you will not receive the benefit of feedback on your submission.

If you do not meet these requirements, you will be notified. You will then have until your submission deadline to submit your completed written and oral assignment.

How your written assignment is graded

Written assignment(s) are used to determine your ‘competence’ in demonstrating the required knowledge and/or skills for each subject. As a result, you will be graded as either ‘Demonstrated’ or ‘Not yet demonstrated’.

Your assessor will follow the below process when marking your written assignment:

assess your responses to each question, and sub-parts if applicable, and then determine whether you have demonstrated competence in each question

determine if, on a holistic basis, your responses to the questions have demonstrated overall competence.

You must be deemed to be demonstrated in all assessment items in order to be awarded the in this subject, including:

all of the exam questions

the written and oral assignment.

Not yet demonstrated’ and resubmissions

Should sections of your written assignment be marked as ‘Not yet demonstrated’ you will be given an additional opportunity to amend your responses so that you can demonstrate your competency to the required level.

You must address the assessor’s feedback in your amended responses. You only need amend those sections where the assessor has determined you are ‘Not yet demonstrated’.

Make changes to your original submission. Use a different text colour for any written sections of your resubmission. Your assessor will be in a better position to gauge the quality and nature of your changes. Ensure you leave your first assessor’s comments in your written assignment, so your second assessor can see the instructions that were originally provided for you. Do not change any comments made by a Kaplan assessor.

Units of competency

This written assignment is your opportunity to demonstrate your competency against these units:

BSBPEF501 Manage personal and professional development
FNSCUS511 Develop and maintain professional relationships in financial services industry
FNSFMB411 Prepare loan applications on behalf of clients
FNSFMB412 Identify client needs and present broking options
FNSFMK515 Comply with financial services regulation and industry codes of practice
FNSINC411 Conduct work according to professional practices in the financial services industry
FNSINC412 Apply and maintain knowledge of financial products and services
BSBPEF402 Develop personal work priorities
FNSFMB511 Implement credit contracts in preparation for settlement
FNSSAM403 Prospect for new clients
BSBOPS304 Deliver and monitor a service to customers
BSBOPS404 Implement customer service strategies

Note that the written and oral assignment is one of two assessments required to meet the requirements of the units of competency.

We are here to help

If you have any questions about this written assignment, you can post your query at the ‘Ask your Tutor’ forum in your subject room. You can expect an answer within 24 hours of your posting from one of our technical advisers or Course Coordinator.

Assignment tasks (student to complete)

Please note: Throughout the assignment, you are to assume that you are a finance and mortgage broker. If you are not currently in a finance and mortgage broker role, your answers are to reflect what you would do if you were working in the finance and mortgage broking industry. You can also draw on your current and past work experiences and refer to the topic notes. You may also need to conduct your own research and consult with people who currently work within the finance and mortgage broking industry.

Section 1: Industry knowledge

Task 1 — Key terms

Working in the finance industry requires you to have an understanding of the terminology used and the names of documentation that you will deal with.

Demonstrate your understanding of some of the common terms and document names by completing the following tables:

1. In your own words, complete the table below; define and explain loan transaction terminology and definitions of the following:

Lender and borrower Answer here
Lessor and lessee Answer here
Mortgagee and mortgagor Answer here

 

Assessor feedback

Resubmission required?

 

2. In your own words, complete the table below; define and explain the documentation used by lenders:

Credit check signed authority Answer here
Guarantee Answer here
Loan contract Answer here
Periodical payment authority Answer here
Signed application form Answer here

 

Assessor feedback

Resubmission required?

 

3. In your own words, complete the table below; describe:

The negotiation process Answer here
Customer Relationship Management (CRM) tool Answer here
Certificate of Currency Answer here

 

Assessor feedback

Resubmission required?

Task 1 — Assessor feedback:

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.

Task 2 ― The Australian financial market

The state of the economy and financial markets affects elements of lending, such as interest rates; and also has an impact on consumers’ attitudes to borrowing and debt.

The Reserve Bank of Australia (RBA) is Australia’s central bank and is responsible for monetary policy, financial and payment system policies, and other financial matters.

Task 2: Question 1

Research the RBA website and answer the following questions:

(a) List the three (3) statutory objectives (key elements) the RBA sets out to achieve. (20 words)

Hint/Tip:

There is a link to the website in the Toolbox.

Watch the Monetary Policy Framework video on the RBA website: <www.rba.gov.au/monetary-policy>, viewed 12 March 2022.

Student response to Task 2: Question 1(a)

Assessor feedback

Resubmission required?

(b) The RBA meet on the first Tuesday of each month to review the cash rate.

Name three (3) things relevant to a mortgage broker’s role upon which the cash rate impacts.

(25 words)

Student response to Task 2: Question 1(b)

 

Assessor feedback

Resubmission required?

Task 2 — Assessor feedback

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.

Task 3 — Financial services legislation and industry codes of practice

Task 3: Question 1

Conduct some research to identify websites that you could use to keep up to date with regulatory changes and changes in codes of practice in the mortgage broking industry.

Complete the table below with the following information:

• Two (2) Regulations/Legislations and two (2) codes of practice with which you must keep up to date.

• For both, provide the website name and URL address, and explain how these websites are helpful for keeping up to date with changes.

(40 words)

Student response to Task 3: Question 1

Regulation/
Legislation name
Website URL Address Explain how this website is helpful to keep up to date with changes
1. Answer here Answer here Answer here
2. Answer here Answer here Answer here
Code Name Website URL Address Explain how this website is helpful to keep up to date with changes
1. Answer here Answer here Answer here
2. Answer here Answer here Answer here

 

Assessor feedback

Resubmission required?

Task 3: Question 2

List two (2) risks and the consequences that are associated with not complying with the NCCP Act.

(30 words)

Student response to Task 3: Question 2

 

Assessor feedback

Resubmission required?

Task 3: Question 3

In your own words, describe the key features of the Privacy Act 1988.

(30 words)

Student response to Task 3: Question 3

 

Assessor feedback

Resubmission required?

Task 3: Question 4

(a) In your own words, describe the key features and the purpose of codes of practice.

(b) Provide one (1) example of how a code of practice would be implemented into a work situation for a mortgage broker.

(50 words)

Student response to Task 3 Question 4

(a) Answer here

 

(b) Answer here

 

Assessor feedback

Resubmission required?

Task 3: Question 5

(a) In your own words describe best interests duty.

(b) Provide one (1) example of how the best interests duty would be implemented into a work situation for a mortgage broker.

(50 words)

Student response to Task 3: Question 5

(a) Answer here

 

(b) Answer here

 

Assessor feedback

Resubmission required?

Task 3: Question 6

(a) How would you communicate changes in regulation, legislation, or codes of practice to your colleagues?

(b) Explain how you would execute changes to your organisation’s policy, procedures and practices to ensure that you are meeting the changes (for example, the introduction of best interests duty).

(80 words)

Student response to Task 3: Question 6

(a) Answer here

 

(b) Answer here

 

Assessor feedback

Resubmission required?

Task 3: Question 7

If you were unsure of how to apply any regulation, legislation or codes of practice to your role or interaction with a client, explain what you would do.

(30 words)

Student response to Task 3: Question 7

 

Assessor feedback

Resubmission required?

Task 3: Question 8

Remaining compliant with financial services regulation and industry codes of practice is vital.
One way to make sure compliance is being met is through monitoring or internal audits.

You have been asked by your manager to implement an internal monitoring/audit process for your mortgage broking firm to ensure that the credit representatives are meeting their obligations with regulation, legislation and codes of practice.

Outline the monitoring/audit process that you have implemented to ensure compliance. You should include the following:

• How you will monitor/audit compliance.

• Who will undertake the monitoring/audit process.

• What tools you will use.

• How or where you will record the outcomes.

(150 words)

Student response to Task 3: Question 8

 

Assessor feedback

Resubmission required?

Task 3: Question 9

What information provided by a client needs to be retained by a financial services organisation, like a brokerage? (50 words)

Student response to Task 3: Question 9

 

Assessor feedback

Resubmission required?

Task 3 — Assessor feedback:

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.

Task 4 — Products and services

The financial services industry is very competitive, with many organisations offering a number of different lending and transactional products and services.

Organisations use a variety of approaches to market and promote their products and services.

It is very important that brokers are able to determine the right product and service to meet the needs and requirements of their clients.

Some clients like to be able to combine their lending products with other banking products and services. While it is important to have a thorough knowledge of lending products, it is also important to be able to identify other relevant products and services to accommodate your client’s needs and requirements.

Task 4: Question 1

Using the information in the topic notes in conjunction with your own research, complete the product knowledge table below.

Student response to Task 4: Question 1

1. Variable rate home loan — package

2. Fixed rate home loan

3. Interest only home loan

Financial institution and name of product

Product characteristics

(features)

(Minimum of three (3))

1.

2.

3.

1.

2.

3.

1.

2.

3.

Product purpose

(What would a client use this for?)

Applicable fees and charges

Terms and conditions of this product

(Minimum of three (3))

1.

2.

3.

1.

2.

3.

1.

2.

3.

List one (1) strength and one (1) weakness

Strength:

Weakness:

Strength:

Weakness:

Strength:

Weakness:

4. Home equity loan (line of credit)

5. Credit card

6. Personal overdraft

Financial institution and name of product

Product characteristics (features)

(Minimum of three (3))

1.

2.

3.

1.

2.

3.

1.

2.

3.

Product purpose

(What would a client use this for?)

Applicable fees and charges

Terms and conditions of this product

(Minimum of three (3))

1.

2.

3.

1.

2.

3.

1.

2.

3.

List one (1) strength and one (1) weakness

Strength:

Weakness:

Strength:

Weakness:

Strength:

Weakness:

 

Assessor feedback

Resubmission required?

Task 4: Question 2

Conduct your own research on current home loan industry trends. Provide a minimum of three (3) current trends. (50 words)

Student response to Task 4: Question 2

 

Assessor feedback

Resubmission required?

Task 4: Question 3

(a) How do financial service providers market and/or promote their products and services?

(b) Where can you locate a lending organisation’s current promotions and specials?

(c) Describe how you would identify clients whose needs match products and services that are part of a current promotional strategy.

(d Describe how you can keep your product knowledge up to date. Include the methods and/or systems you could use to maintain product knowledge.

(40 words)

Student response to Task 4: Question 3

(a) Answer here

(b) Answer here

(c) Answer here

(d) Answer here

 

Assessor feedback

Resubmission required?

Task 4: Question 4

The Australian Banking Association’s (ABA) Banking Code of Practice (BCOP) outlines several obligations for the provision of financial products and services. The Code can be downloaded from the ABA website.

(a) List at least two (2) items of information that must be provided to a client when providing financial products and services.

(b) Refer to the items you listed in part (a) and explain what the items clearly set out.

(c) What four (4) factors does the Code advise about providing banking services to vulnerable clients?

(d) According to the BCOP, how would you identify (become aware of) a potentially vulnerable client and a client on a low-income?

(100 words)

Student response to Task 4: Question 4

(a) Answer here

(b) Answer here

(c) Answer here

(d) Answer here

 

Assessor feedback

Resubmission required?

Task 4: Question 5

What is a deposit bond and when would it be suitable for a purchaser to use this product?
(Refer to the Toolbox or conduct your own research) (30 words)

Student response to Task 4: Question 5

 

Assessor feedback

Resubmission required?

Task 4 — Assessor feedback:

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.

Section 2: Business skills

Task 5 ― Effective communication

Communication is vital in all interactions, particularly for successful team and client relationships in business.

Answer the following questions using the information from the topic notes in conjunction with your own research.

Task 5: Question 1

List a minimum of four (4) types of communication skills and explain why each is important for effective business communication. (40 words)

Student response to Task 5: Question 1

 

Assessor feedback

Resubmission required?

Task 5: Question 2

(a) Explain why listening is so important for effective communication.

(b) List three (3) barriers to effective listening.

(30 words)

Student response to Task 5: Question 2

(a) Answer here

(b) Answer here

 

Assessor feedback

Resubmission required?

Task 5: Question 3

List five (5) tips to help someone communicate more effectively with different types of clients
(e.g. when dealing with a someone from a different cultural background, whose first language may not be English or a difficult client).

(50 words)

Student response to Task 5: Question 3

 

Assessor feedback

Resubmission required?

Task 5 — Assessor feedback:

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.

Task 6 — Professional development

Refer to the business profile for Capital City Finance and Mortgage Brokers (CCF & MB) located in the subject room.

For this task you are to assume you are a mortgage consultant with the CCF & MB team.

Your manager has gone on extended leave and you have been given the task to step up into their role for that period. You are responsible for the performance and development of yourself and your team. You also have a new team member starting in your organisation. It is now your responsibility to ensure that they are provided with the correct information and support to ensure they have the best opportunity to succeed in your organisation.

You will be required to explain a number of items to your team, as well as support and guide them to maintain their performance and professional development during this time.

Task 6: Question 1

(a) Explain why is it important for individual work goals to align to the organisation’s goals?

(b) Identify the types of organisational framework that you can refer to when planning your own and your team’s work goals to ensure that they align to the organisation’s goals.

(c) List the colleagues you would consult with if you required clarification of your own role responsibilities and how they fit into the wider organisation’s goals and objectives.

(80 words)

Hint/Tip:

You may be required to conduct your own research for this Task. Refer to the Toolbox for suggested links.

Student response to Task 6: Question 1

(a) Answer here

(b) Answer here

(c) Answer here

 

Assessor feedback

Resubmission required?

Task 6: Question 2

(a) Where would you document the new team member’s role responsibilities?

(b) How will you outline and document their role-specific targets?

(c) Explain how you will support the new team member to set goals to ensure they will achieve their targets.

(d) Describe how you can use technology to help you manage the team’s work priorities.

(50 words)

Student response to Task 6: Question 2

(a) Answer here

(b) Answer here

(c) Answer here

(d) Answer here

 

Assessor feedback

Resubmission required?

Task 6: Question 3

What guidance can you provide the new team member to keep up to date with industry and product knowledge? Provide a minimum of four (4) tips.

(50 words)

Student response to Task 6: Question 3

 

Assessor feedback

Resubmission required?

Task 6: Question 4

(a) Describe how you can encourage and facilitate personal and professional development for you and your team?

(b) How can you record and document you and your team’s personal and professional development goals?

(c) Explain the human resources policy and procedure at CCF & MB regarding the attendance of professional development seminars, webinars and offsite development workshops.
(Refer to the example business profile for CCF & MB)

(50 words)

Student response to Task 6: Question 4

(a) Answer here

(b) Answer here

(c) Answer here

 

Assessor feedback

Resubmission required?

Task 6: Question 5

(a) Describe how can you identify team health and wellbeing in the workplace.
(e.g. How would you know if your team is working well together and if individuals are okay).

(b) What strategies might you put into place to manage team health and wellbeing in your workplace?

(80 words)

Student response to Task 6: Question 5

(a) Answer here

(b) Answer here

 

Assessor feedback

Resubmission required?

 

Task 6: Question 6

Part of your role requires you to monitor and measure your own performance.

(a) Complete the annual targets in your scorecard. (You may need to conduct some research for realistic targets there is an example Scorecard located in the Business Profile for CCF & MB)

(b) Complete the actual results up to Quarter 3. You notice you are behind in two Key Performance Indicators (KPIs). Record the results in the Scorecard below.

(c) Draft an email to your team leader:

(i) Include your results compared against the last quarter.

(ii) Include a self-assessment of your performance.

(iii) Seek feedback from your team leader of steps that you can take to improve your work performance and meet your targets.

Student response to Task 6: Question 6

Goal

Q1 Target

Actual

Result

% of Target

Q2 Target

Actual

Result

% of Target

Q3 Target

Actual

Result

% of Target

Q4 Target

Actual

End of year result

% of Target

(c) Answer here

 

Assessor feedback

Resubmission required?

Task 6: Question 7

Improving your own work performance requires both self-assessment and seeking feedback from others.

(a) Describe how you monitor and update your own performance against your scorecard.

(b) To improve your own personal performance, how should you approach the feedback you receive from others?

(c) When reviewing your performance against your colleagues/workgroup, describe the different methods you can use to analyse and interpret feedback from others.

(d) When communicating with people from different cultures, identify what barriers you need to overcome to ensure you meet your personal responsibilities?

(200 words)

Student response to Task 6: Question 7

(a) Answer here

(b) Answer here

(c) Answer here

(d) Answer here

 

Assessor feedback

Resubmission required?

Task 6: Question 8

(a) You are required to create a professional development plan (PDP).
(Refer to the Toolbox for a sample PDP or you can develop your own.)

Your PDP must include the following, namely:

• the two (2) KPIs from your scorecard for which you are behind as at Q3.

• a goal for each of those KPIs to ensure you will achieve them by Q4.

• the steps/actions you will take to achieve the goals.

• two (2) professional development areas that you would like to improve

• two (2) formal training or continuous professional development activities that relate to the industry (refer to industry associations for ideas).

• the minimum amount of CPD points you would need to maintain if you were a Mortgage and Finance Association of Australia (MFAA) member holding ‘loan writer’ status (link available in the Toolbox).

(b) Once you have completed your personal development plan, who will you seek feedback from on the plan?

(150 words)

Student response to Task 6: Question 8

(a) Answer here
(b) Answer here

 

Assessor feedback

Resubmission required?

Task 6: Question 9

Now that you have developed your own PDP, prepare two (2) other PDPs, each containing a minimum of two (2) development areas, for the following staff members:

(a) a loans administrative officer

(b) a mortgage broker who has recently joined the team.

(150 words)

Student response to Task 6: Question 9

(a) Answer here
(b) Answer here

 

Assessor feedback

Resubmission required?

Task 6: Question 10

Managing your time is vital to being able to juggle all of your work tasks, professional development and personal life. Refer to the information provided in the topic notes as well as conduct your own research regarding the ‘important/urgent’ matrix.

There are many short videos available — for example, the Eisenhower matrix: How to manage your tasks with Eisenhower, [online video], viewed 3 May 2021, <www.youtube.com/watch?v=tT89OZ7TNwc>.

(a) Make a list of a minimum of twelve (12) tasks and activities a mortgage broker (or mortgage consultant) would need to complete in their role. This should include anything that requires your time — for example, team meetings, emails, personal emails, making a coffee, processing your work, training etc.

(30 words)

Hint/Tip:

Refer to the example business profile for Capital City Finance & Mortgage Brokers (CCF & MB) for a Mortgage Consultants Role description and list of role tasks.

When it comes to phone calls and emails, be specific about the types of phone calls or emails you handle. For example, personal/social emails versus urgent email requests from a client.

Student response to Task 6: Question 10(a)

 

Assessor feedback

Resubmission required?

 

(b) Once you have listed your job tasks above (from part a), place each task in the appropriate quadrant. (30 words)

Student response to Task 6: Question 10(b)

Important/Urgent

Answer here

Important/Not Urgent

Answer here

Not Important/Urgent

Answer here

Not Important/Not Urgent

Answer here

 

Assessor feedback

Resubmission required?

Task 6 — Assessor feedback:

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.

Task 7 — Customer service

Customer service is integral to the success of any organisation and regardless of industry, customers are placed at the core of everything businesses do. Therefore, being clear on your organisation’s customer service standards is critical to ensure that the service you and your team provide is in line with its culture and expectations.

Organisations establish customer service systems to ensure there is a consistently high standard of service for customers from end to end, across all departments, involving all team members, and at every touchpoint their customers have with their organisation.

It is important that the customer service system is continually monitored and reviewed to ensure that the system remains effective.

For the following questions, reflect on your current or past organisation or conduct research to explain how businesses approach gathering, monitoring and acting on feedback from internal and external customers. Then answer the following questions.

Task 7: Question 1

List and explain three (3) processes that a business can use to gather feedback from its clients? (30 words)

Student response to Task 7: Question 1

 

Assessor feedback

Resubmission required?

Task 7: Question 2

Feedback is very important for a business to understand that the products and service that they provide to their clients meets the expectations of the clients.

The feedback from the quarterly customer survey on the service and products provided has been received by the business.

There are six (6) responses of feedback received:

1. ‘The broker was really helpful and responded quickly to my emails. They were very personable and professional’: Sam Welsh

2. ‘I left a message on their message bank on Thursday night, leaving my details to be contacted the next day. I didn’t get a response call until the following Thursday – I really couldn’t wait that long as I had found a property and went elsewhere’: Anh Nam

3. ‘No one responded my calls in a timely manner, it was always 2 to 3 days later’: Mario Taranto

4. ‘I sent an email on the Friday and still did not have a response by the following Friday, I wasn’t very happy with that’: Aya Farid

5. ‘I sent through a couple of emails with questions that I had regarding my loan application. The response I received was not what I was expecting – very unprofessional’: Yarran Danggetti

6. ‘I am really happy with the products recommended to meet my needs for a home loan’: Dan Wong

It is important to record and action this feedback.

Part 1

The feedback is to be recorded in the client files.

(a) Select three (3) responses from above and record these details in the table below, including what actions you would take.

(b) How would you confirm that the client’s expectations have been met in response to their feedback?

Student response to Task 7: Question 2 Part 1

(a) Answer here

Client name

Feedback source

Feedback comments

Action required

Action completed Y/N

Answer here Answer here Answer here Answer here Answer here
(b) Answer here

 

Assessor feedback

Resubmission required?

Part 2

(a) Referring to the areas of concern in the survey responses above, write a customer service improvement report including:

• three (3) areas where customer service can be improved. (What)

• a minimum of two (2) actions that would be required to implement the improvements. (How)

• a list of the stakeholders that would need to be consulted to implement the improvement, and
an explanation of how you would communicate this with the stakeholders. (Who)

(b) Write an email to a stakeholder identified in the table below explaining your recommendation and how it will improve the area of customer service.

(100 words)

Hint/Tip:

Draw on your current and/or past experiences to answer this question. Refer to the Toolbox for examples of customer service standards. You may also use the example business profile of CCF & MB to answer this question. It is preferable that you relate the areas of customer service to the finance and mortgage broking industry. You also may need to conduct your own research.

Student response to Task 7: Question 2, Part 2

(a)

Area for Improvement Steps/Actions to implement improvement the improvement

(min of two (2) actions)

Communication to Stakeholders

(name the stakeholder by role)

Time frame to complete
1. Answer here Answer here Answer here Answer here
2. Answer here Answer here Answer here Answer here
3. Answer here Answer here Answer here Answer here

(b) Answer here

 

Assessor feedback

Resubmission required?

Task 7: Question 3

(a) How can you and your team monitor the level of customer satisfaction in your workplace in line with the service standards set?

(b) Provide two (2) suggestions for ensuring that team members are accountable for the customer service standards in the workplace.

(75 words)

Student response to Task 7: Question 3

(a) Answer here

(b) Answer here

 

Assessor feedback

Resubmission required?

Task 7 — Assessor feedback:

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.

Task 8 ― Respond and report on complaints

Task 8: Question 1

Refer to the Toolbox in your subject room for Policies and Procedures and links regarding handling complaints and disputes, and respond to the following questions based on those documents:

(a) Who should a client refer their complaint to in the first instance?

(b) In accordance with the Banking Code of Practice, if a provider of financial products and services is unable to provide a resolution within 30 days, what are the five (5) steps they must take?

(50 words)

Student response to Task 8: Question 1

(a) Answer here

(b) Answer here

 

Assessor feedback

Resubmission required?

Task 8: Question 2

Consider the following scenario.

Mr Joseph Harper, a new customer, has called your office and has complained about the time it is taking to receive a decision on his loan application, which was submitted 10 days ago.

The average turnaround time with the lender Joseph has applied to for a loan is 14 working days. Additionally, the loan requires lenders mortgage insurance (LMI), which could add a further two days to the assessment time frame.

The client is getting anxious as he has made an offer on a property subject to finance. There is only 14 days from date of offer to confirm finance approval before the property will go back on the market, so he is very worried he may miss out on the property.

(a) Describe the steps you will take to resolve this complaint. Include the stakeholders you will refer to in the resolution process.

(b) Describe the resolution you will communicate to Joseph.

You may refer to the Toolbox for Policies and Procedures regarding handling complaints and disputes.

(80 words)

Student response to Task 8: Question 2

(a) Answer here

(b) Answer here

 

Assessor feedback

Resubmission required?

Task 8: Question 3

Complete the customer report below based on the scenario in question 2.

Student response to Task 8: Question 3

Customer complaint report

Customer name

Title (Mr, Mrs, etc.)

Family name (surname)

Given names

Answer here Answer here Answer here

Service being provided to client:

Answer here

Nature of complaint:

Answer here

Outcome:

Answer here

 

Assessor feedback

Resubmission required?

Task 8 — Assessor feedback:

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.

Task 9 ― Prospecting for new clients

Finding sales prospects or people who are likely to become customers is necessary to ensure the stability and growth of a business.

Task 9: Question 1

What communication methods can be used to prospect for new clients?

(30 words)

Student response to Task 9: Question 1

 

Assessor feedback

Resubmission required?

Task 9: Question 2

Refer to the Toolbox and the Client Prospecting Guidelines and answer the following questions:

(a) What are the four (4) steps you must include in your introduction when making a prospective call?

(b) Following your introduction, what important question must you ask before continuing with your call?

(c) What should you do if the prospect advises you that they do not wish to continue the call and they do not wish to be contacted again?

(30 words)

Student response to Task 9: Question 2

(a) Answer here

(b) Answer here

(c) Answer here

 

Assessor feedback

Resubmission required?

Task 9: Question 3

You have made two (2) prospecting calls. As per the client prospecting guidelines located in the Toolbox, complete the client prospect register below for the following scenarios:

(a) Call 1: You made a call to Rosie Abdul. Following your introduction, Rosie agreed to continue the call. Rosie has been considering refinancing her home loan and seeking an increase to her loan so as she can renovate her kitchen. Rosie also said that the task of doing the research for different lenders seems too daunting. She is not quite ready to begin the process, but she is interested in how your brokerage could assist her. Rosie asked if you could call back in three months.

(b) Call 2: You just called Bruce O’Connor and introduced yourself and provided the purpose of the call. You asked Bruce permission to proceed with the call. Bruce advised that he was not interested and did not want to receive calls from your firm in the future.

Student response to Task 9: Question 3

Client prospect register

Name

Date

Contact method

Comment/outcome

Follow up required (Y/N)

Follow up date

Do not call

(a) Answer here

Answer here

Answer here

Answer here

Answer here

Answer here

Answer here

(b) Answer here

Answer here

Answer here

Answer here

Answer here

Answer here

Answer here

 

Assessor feedback

Resubmission required?

Task 9: Question 4

Refer to your contact with Rosie Abdul in Question 4. Three months has now passed, and you need to call Rosie back.

Explain how you will prepare for your next call with Rosie. Include the following:

(a) The information you will require from Rosie.

(b) The information you should provide to Rosie about how your brokerage firm can assist her and a brief outline of the application process.

(80 words)

Student response to Task 9: Question 4

(a) Answer here

(b) Answer here

 

Assessor feedback

Resubmission required?

Task 9: Question 5

Refer to the Toolbox for the link to the following article:
6 Steps of a Successful Sales Process: Understanding both perspectives.

Explain the key features of the buying and selling process.

(80 words)

Student response to Task 9: Question 5

 

Assessor feedback

Resubmission required?

Task 9 — Assessor feedback:

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.

Task 10 – Professional networks

You build on your network base each day at work as you interact with your colleagues, and internal and external stakeholders. You even build networks in your social life.

Networks and professional connections are important as they can be helpful in building on your industry knowledge, your career development and also to grow your business.

Hint/Tip:

Watch the video ‘Networking for Success’ – the link is in the Toolbox.

Internal networks – people you know and connect with inside your organisation, for example, colleagues, people from other departments.

External networks people you know and connect with outside of the organisation, for example, other professionals who do not work in your organisation that are aligned with your work, industry associations, family, friends, sporting clubs, social clubs, committees, children school, social/professional media platforms.

Task 10: Question 1

(a) Identify and make a comprehensive list (minimum of ten (10) internal and external networks). This can include networking groups and/or associations.

List people by their role rather than their names – if you are not currently working, you can list the networks you would have in a mortgage broker role.

(b) From the list you created in part (a), choose six (6) networks. At least one (1) must be from the financial services industry and one (1) must be a third-party referrer. The others may be from any other connections. Complete the table below by outlining how your connection with these networks is of benefit to you and to the broking business.

(c) From the list in Part (b), choose three (3) connections/networks. Explain how you develop and maintain those relationships. Include how you will stay in contact and also how you will enhance the relationship to ensure it remains mutually beneficial.

(d) Identify and explain the importance of three (3) communication channels and tools that you use to develop and maintain professional relationships.

(100 words)

Student response to Task 10: Question 1

(a) Answer here

Internal

External

(b)

Network Benefit You
1. Answer here Answer here
2. Answer here Answer here
Network Benefit to the business
3. Answer here Answer here
4. Answer here Answer here
5. Answer here Answer here
Network Benefit to the business
6. Answer here Answer here
(c)

Network/connection — Name Type of network/connections Actions you take to develop and maintain the relationship
1. Answer here Answer here Answer here
2. Answer here Answer here Answer here
Network/connection — Name Type of network/connections Actions you take to develop and maintain the relationship
3. Answer here Answer here Answer here
(d)

Communication method What are the positive features of this method (why might you use it)?
1. Answer here Answer here
2. Answer here Answer here
3. Answer here Answer here

 

Assessor feedback

Resubmission required?

Task 10: Question 2

Explain how you will maintain policy, regulations and codes of practice when networking to promote your business and enhance its reputation. Include how you would present yourself, communicate and maintain client confidentiality. (30 words)

Student response to Task 10: Question 2

 

Assessor feedback

Resubmission required?

Task 10: Question 3

(a) Identify two (2) practices that could be implemented to improve business practices when it comes to developing and maintaining networks.

(b) Explain which personnel you would involve in reviewing your network connections to ensure that they are appropriate for your business’ needs and why you would involve them.

(75 words)

Student response to Task 10: Question 3

(a) Answer here

(b) Answer here

 

Assessor feedback

Resubmission required?

Task 10 — Assessor feedback:

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.

Task 11 ― Managing information

Working as a broker in the financial services industry can involve working for a large or small organisation. A comprehensive understanding of the organisation’s structure, management, processes and policies is vital for success.

Refer to the Capital City Finance and Mortgage Brokers (CCF & MB) case study (Future developments) located in the subject room.

CCF & MB have hired a new sales team member, and you are responsible for completing the induction program.

Task 11: Question 1

Briefly explain how CCF & MB access information regarding updates to products and services in their system.

(50 words)

Student response to Task 11: Question 1

 

Assessor feedback

Resubmission required?

Task 11: Question 2

Managing information in a mortgage broking firm may also apply to maintaining and upkeeping compliance and licences. Refer to the Australian Securities and Investment Commission’s (ASIC) website to answer the following question.

Australian credit licence holders are required to complete an Annual Compliance Certificate and lodge it with ASIC.

Hint/Tip:

You will be required to conduct your own research Refer to the Toolbox and ASICs website.

When completing the Annual Compliance there is specific information required to be provided to ASIC upon lodgement. List the five (5) items that are required to be confirmed on the Annual Compliance Certificate.

(75 words)

Student response to Task 11: Question 2

 

Assessor feedback

Resubmission required?

Task 11 — Assessor feedback:

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.

Section 3: The lending process

Task 12 ― Understanding the client’s needs

Brokers have both ethical and legislative obligations to understand a client’s needs and objectives. There are obligations for making reasonable inquiries and verifications under NCCPs responsible lending obligations contained in ASIC’s Regulatory Guide 209 (RG209).

Research RG209.43 online and answer the following questions.

Task 12: Question 1

While it is important to understand your client’s needs and objectives to ensure that you recommend a product that has all of the features and benefits they require, it is also important to understand other requirements your client may have to ensure the product recommended is ‘not unsuitable’.

List at least four (4) types of ‘specific customer requirements’ your client may have.

Hint/Tip:

Refer to your topic notes and/or conduct your own research.

Choose requirements that may not necessarily be a product feature, for example, a client may want a lender that they can visit or may need to sell the property in a specific time frame.

(20 words)

Student response to Task 12: Question 1

 

Assessor feedback

Resubmission required?

Task 12: Question 2

When the loan is for a self-employed person, the lender will ask for financial information for the business. What are the common financial records the lender will ask for? Provide a minimum of three (3). (These must be in addition to what a PAYG client would provide.)

(20 words)

Student response to Task 12: Question 2

 

Assessor feedback

Resubmission required?

Task 12: Question 3

(a) Explain the information that is contained in a credit report.

(b) Why it is important that the client provides all the details about their credit report to their broker at the beginning of the loan process?

(c) What are the credit provider’s obligations to the client if a loan is declined due to their credit report?

(d) What would you advise your client to do if their loan was declined due to their credit report?

(80 words)

Student response to Task 12: Question 3

(a) Answer here

(b) Answer here

(c) Answer here

(d) Answer here

 

Assessor feedback

Resubmission required?

Task 12 — Assessor feedback:

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.

Task 13 ― Developing and presenting solutions

Task 13: Question 1

The client solution is not just about providing a product that will meet their product needs. Developing a solution for your client’s needs also involves the security or collateral that the lender will require for that loan product.

(a) List a minimum of three (3) types of assets that lenders may take as collateral to secure a loan. (This can be security for either consumer or commercial lending.)

(b) List a minimum of two (2) security documents that are required in order for the lender to have control over the asset while the loan is in place.

(c) If a director offers their home (in their personal name) as security for lending in their company name, what is the name of the security document that is required to link the asset to the loan?

(d) From time to time a client may need to offer a second property to support a loan in order to reduce the loan-value-ratio (LVR) to avoid LMI and meet lender requirements. What is this name of this practice?

(50 words)

Student response to Task 13: Question 1

(a) Answer here

(b) Answer here

(c) Answer here

(d) Answer here

 

Assessor feedback

Resubmission required?

Task 13 — Assessor feedback:

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.

Task 14 – Packaging the application to send to the lender

Packaging a home loan application is detailed and requires a mortgage broker to gather documents to prepare the lending submission in accordance with the lender’s requirements.

While it is important to know what documents you will need to gather, it is also important that you understand the information contained within the documents. For example, the frequency of income, if overtime is included.

Task 14: Question 1

(a) Explain what documents you would gather to in order to verify:

(i) a PAYG employee’s income

(ii) a self-employed person’s income

(iii) rental income for an existing investment property.

(b) Choose three (3) documents that you listed in part (i). Write one (1) question that you could ask the client to confirm you understand the information contained within each of the documents provided.

(60 words)

Student response to Task 14: Question 1

(a)(i) Answer here
(a)(ii) Answer here
(a)(iii) Answer here
(b) Answer here

Document One (1) question to confirm information with your client
1. Answer here Answer here
2. Answer here Answer here
3. Answer here Answer here

 

Assessor feedback

Resubmission required?

Task 14: Question 2

When submitting your client’s loan application, you also need to submit supporting documentation.

(a) Explain how you confirm that you have the correct supporting documents for your client’s loan requirements in accordance with the lender’s requirements. (e.g. If the loan application was for an investment property, think of what may be required as specific supporting documents)

(b) Explain how you check the supporting documentation for accuracy and also to ensure that the documents are in the right format and legible for the lender.

(40 words)

Student response to Task 14: Question 2

(a) Answer here

(b) Answer here

 

Assessor feedback

Resubmission required?

Task 14 — Assessor feedback:

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.

Task 15 ― Monitor the lending process

Some loan applications may require further information following submission. This often means returning to the client to obtain the information.

Task 15: Question 1

Provide one (1) example of further information a lender may request. Explain common reasons for the additional information.

(30 words)

Student response to Task 15: Question 1

 

Assessor feedback

Resubmission required?

Task 15 — Assessor feedback:

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.

Section 4: Case studies

Case study 1: Philip and Jennifer Brown

The case study is located in the subject room in KapLearn.

Often client meetings occur in the form of a face-to-face meeting, typically at the broker’s office or in the client’s home or workplace. As technology has developed, it has made different forms of client contact possible using software such as Zoom. Conducting online meetings has become more acceptable and can also be quite convenient for some clients.

Task 16 ― Case study: Purchasing an owner-occupied home

It is time to prepare to meet with your first client, Philip and Jennifer Brown. As the broker, you need to consider a range of obligations when dealing with a customer. This section will consider some of these obligations.

Task 16: Question 1

You have just made an appointment over the phone to meet with Jennifer and Philip.

Prepare an email outlining the purpose of your first meeting. In the email, make sure you also cover the following points.

(a) What documents would you attach to the email?

(b) Include the following information in your email:

(i) the services, values and capacity your organisation has to offer

(ii) your background, credentials and your role as their broker

(iii) the commercial relationship that your firm has with the product providers (i.e. the lenders on your panel).

(50 words)

Hint/Tip:

You can base your response to Part (b) on the CCF & MB business case study located in the subject.

Student response to Task 16: Question 1

(a) Answer here
(b)(i) Answer here
(b)(ii) Answer here
(b)(iii) Answer here

 

Assessor feedback

Resubmission required?

Task 16 — Assessor feedback:

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.

Task 17 ― Completing the fact find

Task 17: Question 1

From the information in Case Study 1 for Jennifer and Philip Brown, complete the following tasks.

(a) Using the client information collection tool/fact finder below, complete:

(i) assets and liabilities

(ii) needs analysis

(iii) credit representative notes

(iv) anticipated fees and charges

(v) funds to complete.

Student response to Task 17: Question 1

Client information collection tool/Fact finder

or the client information collections tool/fact finder tasks, you will need to calculate government fees and charges as well as LMI where applicable.

For this assignment, Genworth is your lender’s LMI provider. Please use the Genworth LMI calculator for all LMI calculations. There are links provided in the Toolbox to help you calculate the applicable fees and charges.

Appointment date: Student to insert date

Appointment time: Student to insert time

Applicant 1

Applicant 2

Surname Answer here Answer here
Other names Answer here Answer here
Contact details Address Answer here Answer here
Phone (W)

Phone (H)

Answer here Answer here
Mobile Answer here Answer here
Email Answer here Answer here
Employment Answer here Answer here
How long? Answer here Answer here
Previous employer (if less than two years) Answer here Answer here
How long? Answer here Answer here
Employment type
(FT/PT/casual/self-employed)
Answer here Answer here
Gross income (p.a.) Answer here Answer here
Number of dependants Answer here Answer here
Motor vehicles:

make/model/year/value $

Answer here Answer here
Loan purpose Answer here
Purchase price/valuation Answer here
Deposit on property Answer here
Loan amount Answer here
Borrowing capacity
(using Genworth serviceability calculation)
Answer here

Assets and liabilities

Assets

Liabilities

Details

Market value

Details

Monthly payments

Amount owing

Owner occupied property at:

Answer here

Mortgage with:

Answer here

Answer here

Investment Property at:

Answer here

Mortgage with:

Answer here

Answer here

Cash at bank
(includes fixed deposits)

Answer here

Car leasing

Answer here

Answer here

Other cash
(includes offset accounts)

Answer here

Personal loans

1.

2.

Answer here

Answer here

Deposit paid on property (only if paid)

Answer here

Overdraft

Answer here

Answer here

Motor vehicles:

1.

2.

Answer here

Other loans:

1.

2.

Answer here

Answer here

Personal effects

Answer here

Credit card limit:

Answer here

Answer here

Answer here

Business value
(if self-employed)

Answer here

Credit card limit:

Answer here

Answer here

Answer here

Shares and investments

Answer here

Other:

Answer here

Answer here

Superannuation

Answer here

Other:

Answer here

Answer here

Other assets (give details)

Answer here

Other:

Answer here

Answer here

Total assets

Answer here

Total liabilities

Answer here

Answer here

Surplus/deficiency: (Total assets less Total liabilities) $Answer here

CURRENT MONTHLY LIVING EXPENSES (Provide a breakdown of the total amount listed in the case study — use your discretion)

Food/housekeeping
Insurance (e.g. motor vehicles, home contents/ building, medical, life/income protection)
Utilities (e.g. rates, gas, electricity, transport)
Transport (e.g. public transport, petrol, registration, repairs)
Education (e.g. school, college, university)
Dependants support (e.g. childcare, child maintenance)
Entertainment (include online subscriptions, e.g. Netflix/Stan)
Other (detail below):

MONTHLY LIVING EXPENSES

Answer here

Needs analysis

1 Name of your current lender? Answer here
2 What type of loans do you have? Answer here
3 Why did you choose this particular loan and lender? Answer here
4 What is the interest rate on your current loan? Answer here
5 What are your payments? Amount Answer here
6 Frequency Answer here
7 Do you know the fees and charges? Answer here
8 What is your proposed purpose for the new loan you are applying for? Answer here
9 Branch access available with current lender Answer here
10 Internet banking available with current lender Answer here
11 Phone banking available with current lender Answer here
12 Lenders not to be considered Answer here
13 Type of loan sought Answer here
14 Preferred Interest rate range Answer here
15 Payment frequency Answer here
16 Redraw Answer here
17 Offset Answer here
18 Salary crediting Answer here
19 Low fees and charges Answer here

Credit representative notes

Note: Providing substantive notes here is a compulsory part of your assessment.

Anticipated fees and charges

Anticipated purchase price Answer here
Deposit on property Answer here
Total Loan amount Answer here
LVR % Answer here
Purchase costs Answer here
Stamp duty – Transfer of Land
Registration fee – Transfer of Land Answer here
Solicitor/conveyancer fee Answer here
Rates and land taxes (estimate) Answer here
Pest inspection (estimate) Answer here
Building inspection (estimate) Answer here
Borrowing costs Answer here
Application/establishment fee
Valuation fee Answer here
Security admin fee Answer here
LMI Answer here
Registration of mortgage Answer here
Discharge/Release of mortgage fee Answer here
Search fees Answer here
Other Answer here
Total purchase and borrowing costs Answer here

Funds to complete

PURCHASE AND LOAN COSTS:

AVAILABLE FUNDS:

Purchase price:

Answer here

Deposit if already paid to agent:

Answer here

Lender application/valuation fees:

Answer here

Cash savings:

Answer here

Stamp duty payable ― Transfer of Land

Answer here

Sale proceeds:

Answer here

Registration fee – Transfer of Land

Answer here

Registration of mortgage ― Land Titles Office

Answer here

Gift:

Answer here

Solicitors fees:

Answer here

FHOG:

Answer here

Other

Answer here

Other:

Answer here

Lenders mortgage insurance ―

added to loan

Answer here

Other:

Answer here

TOTAL COSTS (A):

Answer here

TOTAL OWN FUNDS (D):

Answer here

LOAN AMOUNT REQUESTED (B):

Answer here

OWN FUNDS REQUIRED (A–B) = C:

Answer here

OWN FUNDS REQUIRED (A–B) = C

Answer here

SURPLUS/SHORTFALL (D–C)

Answer here

 

Assessor feedback

Resubmission required?

Task 17 — Assessor feedback:

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.

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 to assess the clients’ 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 this assessment of the clients’ needs to complete Part 2 of your Oral Assignment.

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.

(30 words)

Student response to Task 18: Question 1

 

Assessor feedback

Resubmission required?

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?

(40 words)

Hint/Tip:

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

Student response to Task 18: Question 2

(a) Answer here
(b) Answer here
(c) Answer here

 

Assessor feedback

Resubmission required?

Task 18: Question 3

In the previous question you used the Genworth LMI calculator to work out the LMI premium for Philip and Jennifer Brown. There are other helpful tools located on the Genworth site that can assist you with the preparation of a loan application.

On the Genworth website, under ‘Tools’, select the appropriate calculators to complete the following:

(a) What is Philip and Jennifer’s maximum loan amount according to Genworth serviceability calculation?

(b) What is their combined total gross and net incomes?

(c) What is the proposed monthly loan repayment, based on the actual interest rate? (Tip: capitalise the LMI cost onto the loan amount.)

(30 words)

Student response to Task 18: Question 3

(a) Answer here

(b) Answer here

(c) Answer here

 

Assessor feedback

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Task 18: Question 4

Based on what they have disclosed to you, does the client have the capacity to meet the deposit and total cash contribution required for the property purchase? Explain why or why not.

(30 words)

Student response to Task 18: Question 4

 

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Task 18: Question 5

What is the security offered for this loan? Is it an appropriate type of security?
If so, explain why or why not.

(30 words)

Student response to Task 18: Question 5

 

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Task 18: Question 6

Prior to submitting the application, you are required to obtain a valuation on the property.

For the purposes of the assignment, the broker is to arrange the valuation of the security prior to submitting the loan application.

(a) Complete the template below and prepare a letter to instruct the valuer to conduct a valuation for Philip and Jennifer Brown.

(b) One completed and submitted, how and where would you file this for future reference?
(Consider correct document policies and procedures including legislation and security.)

Student response to Task 18: Question 6

(a) Answer here

Property Valuation Request

Broker details

Nam

Contact details

Client name

Loan type

Loan amount

Loan purpose

Purchase 0 Refinance 0 Consolidation 0 Equity release 0

Property type

Residential 0 Commercial 0 Vacant land 0 Land and construction 0

Property address:

Title details

Volume:

Folio:

Folio identifier: 5

Description

Year of construction

Number of bedrooms

Number of bathrooms

Car accommodation

Other rooms

Other features

 

Property value

Purchase price $ Date of contract — / — / —-

or

Land purchase price $

Building contract $

Refinance ― estimated value range

From $

To $

Property use

Owner occupied 0

Investment 0

Holiday rental 0

Rental income

Rent per month $ .00 Actual/Proposed

Valuation type:

Full valuation: 0

Kerbside: 0

Desktop: 0

(b) Answer here

 

Assessor feedback

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Task 18: Question 7

After considering the client’s financial position, what loan amount would you recommend, and why?

(30 words)

Student response to Task 18: Question 7

 

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Task 18: Question 8

What is the likelihood that the clients will be able to meet all of their financial obligations once the loan is in place? (30 words)

Student response to Task 18: Question 8

 

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Task 18: Question 9

Under Responsible lending requirements, brokers also need to consider foreseeable changes in a client’s financial position. What issues may impact the clients’ ability to meet their financial obligations, including any possible risks, now or in the future? (40 words)

Student response to Task 18: Question 9

 

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Task 18: Question 10

Most lenders stress test home loan repayments by adding a 3.0% buffer to the interest rate to make sure the borrower can afford the repayments over the medium term. If interest rates increased by 3.0%, what would Philip and Jennifer’s loan repayments be, and do you think they would be able to cope with the extra repayment amount? (50 words)

Student response to Task 18: Question 10

 

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Task 18: Question 11

(a) Identify appropriate product options you can present to the clients that may remove this interest rate risk?

(b) What advantage would this type of product provide for the customer?

(50 words)

Student response to Task 18: Question 11

(a) Answer here

(b) Answer here

Assessor feedback

Resubmission required?

Task 18 — Assessor feedback:

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.

Task 19 — Presenting borrowing options and potential benefits

Task 19: Question 1

Although Philip and Jennifer (Case Study 1) are looking to borrow at approximately 90% LVR, what other options may be available to them that would avoid the cost of LMI? Provide at least three (3) options.

(100 words)

Student response to Task 19: Question 1

 

Assessor feedback

Resubmission required?

Task 19: Question 2

Describe the First Home Owner’s Grant or home buyer assistance scheme benefits and stamp duty concessions that are available in the state where Philip and Jennifer are purchasing their home. Are Philip and Jennifer eligible for any assistance? Explain why or why not? (100 words)

Student response to Task 19: Question 2

 

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Resubmission required?

Task 19: Question 3

Philip and Jennifer have called to discuss an issue in relation to the product option you have proposed. They are wondering whether it would be better to fix the interest rate on their loan after having received several conflicting viewpoints from family and friends.

(a) Explain the process you would use to research and identify the various product options available to address the issue raised and still meet the needs of Philip and Jennifer.

(b) Explain to Philip and Jennifer two (2) advantages and two (2) disadvantages of fixing a loan over different fixed rate terms.

(150 words)

Student response to Task 19: Question 3

(a) Answer here

 

(b) Answer here

 

Assessor feedback

Resubmission required?

Task 19: Question 4

What other option/s can you suggest if Philip and Jennifer remain uncertain about whether to fix the rate on their loan?

(100 words)

Student response to Task 19: Question 4

 

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Resubmission required?

Task 19: Question 5

You want to ensure that Philip and Jennifer have all the critical insurance protections in case something unfortunate happened to one of them.

(a) What process would you follow during your discussion with the clients to ensure you have a good assessment of their needs? (50 words)

Student response to Task 19: Question 5(a)

 

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(b) Explain who you should refer Philip and Jennifer to obtain advice on these types of products. (10 words)

Student response to Task 19: Question 5(b)

 

Assessor feedback

Resubmission required?

Task 19 — Assessor feedback:

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.

Task 20 – Supporting the client to settlement

Although a broker does not participate in the settlement process, they still need to remain in touch with all of the stakeholders until the loan settles.

Task 20: Question 1

Why it is important for the broker to remain informed of developments in the lending process despite not being actively involved at every stage? (100 words)

Student response to Task 20: Question 1

 

Assessor feedback

Resubmission required?

Task 20: Question 2

The application form and related documents have now been signed and forwarded to the lender for approval. Philip and Jennifer have agreed that you will keep their solicitor informed of progress if/when the loan is approved.

(a) To improve your service delivery standards and ensure you are communicating effectively with Philip and Jennifer for the remainder of your interactions with them, you thought this was an appropriate time to review your client service standards. Refer to the ‘Example of an organisation’s policies and procedures’ document in the Toolbox under the section ‘client service standards’. What evidence would you consider in your review of the service delivery standards?

(b) Considering organisational policy and procedure, how would you document the improvements and to whom in your organisation might you submit your review of the standards?

(100 words)

Student response to Task 20: Question 2

(a) Answer here
(b) Answer here

 

Assessor feedback

Resubmission required?

Task 20 — Assessor feedback:

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.

Case study 2: Mary Azacca

Case study 2 for Mary Azacca is located in your subject room in KapLearn.

Task 21 ― Case study 2: Refinancing a home loan

One of your clients, Adib Bursal, who has used your service for several years, has referred a work colleague who is considering their options to refinance their loan. The colleague’s name is Mary Azacca.

The initial meeting with Mary was conducted over Zoom. Following the meeting, Mary forwarded basic information and documents sufficient to prepare a preliminary assessment.

Task 21: Question 1

A preliminary assessment is a document prepared by the broker and given to the borrower upon request. However, before the assessment is prepared, the broker must have a comprehensive idea of what the client requires.

To collect the information necessary to prepare a preliminary assessment, refer to Case Study 2 for Mary Azacca and complete the following tasks.

(a) Using the client information collection tool/fact finder, complete:

– assets and liabilities

– needs analysis

– anticipated fees and charges

– funds to complete.

Student response to Task 21: Question 1

Client information collection tool/Fact finder

Appointment date: Student to insert date

Appointment time: Student to insert time

Applicant 1

Surname Answer here
Other names Answer here
Contact details Address Answer here
Phone (W)

Phone (H)

Answer here
Mobile Answer here
Email Answer here
Employment Answer here
How long? Answer here
Previous employer (if less than two years) Answer here
How long? Answer here
Employment type
(FT/PT/casual/self-employed)
Answer here
Gross income (p.a.) Answer here
Net income (monthly) Answer here
Number of dependants Answer here
Motor vehicles:

make/model/year/value $

Answer here
Loan purpose Answer here
Purchase price/Valuation Answer here
Deposit on property Answer here
Loan amount Answer here
Borrowing capacity
(using Genworth serviceability calculation)
Answer here

Assets and liabilities

Assets

Liabilities

Details

Market value

Details

Monthly payments

Amount owing

Owner occupied property at:

8 North Road Rockingham Perth Western Australia

Answer here

Mortgage with:

Simply Home Loans

Answer here

Answer here

Investment property at:

Answer here

Mortgage with:

Answer here

Answer here

Cash at bank
(includes fixed deposits)

Answer here

Car leasing

Answer here

Answer here

Other cash
(includes offset accounts)

Answer here

Personal loans

1.

2.

Answer here

Answer here

Deposit paid on property
(only if paid)

Answer here

Overdraft

Answer here

Answer here

Motor vehicles:

1. Holden Commodore SS 2007

2. Nissan Qashqai 2019

3. Indian Scout Motorcycle 2018

Answer here

Other loans:

1.

2.

Answer here

Answer here

Personal effects

Answer here

Credit card limit:

Answer here

Answer here

Answer here

Business value
(if self-employed)

Answer here

Credit card limit:

Answer here

Answer here

Answer here

Shares and investments

Answer here

Other:

Answer here

Answer here

Superannuation

Answer here

Other:

Answer here

Answer here

Other assets (give details)

Answer here

Other:

Answer here

Answer here

Total assets

Answer here

Total liabilities

Answer here

Answer here

Surplus/deficiency: (Total assets less Total liabilities) $Answer here

CURRENT MONTHLY LIVING EXPENSES
(Provide a breakdown of the total amount listed in the case study — use your discretion)

Food/housekeeping
Insurance
(e.g. motor vehicles, home contents/ building, medical, life/income protection)
Utilities
(e.g. rates, gas, electricity, transport)
Transport
(e.g. public transport, petrol, registration, repairs)
Education (e.g. school, college, university)
Dependants support
(e.g. childcare, child maintenance)
Entertainment (include online subscriptions, e.g. Netflix/Stan)
Other (detail below):
MONTHLY LIVING EXPENSES

Answer here

Needs analysis

1 Name of your current lender? Answer here
2 What type of loans do you have? Answer here
3 Why did you choose this particular loan and lender? Answer here
4 What is the interest rate on your current loan? Answer here
5 What are your payments? Amount Answer here
6 Frequency Answer here
7 Do you know the fees and charges? Answer here
8 What is your proposed purpose for the new loan you are applying for? Answer here
9 Branch access available with current lender Answer here
10 Internet banking available with current lender Answer here
11 Phone banking available with current lender Answer here
12 Lenders not to be considered Answer here
13 Type of loan sought Answer here
14 Preferred interest rate range Answer here
15 Payment frequency Answer here
16 Redraw Answer here
17 Offset Answer here
18 Salary crediting Answer here
19 Low fees and charges Answer here

 

Assessor feedback

Resubmission required?

Task 21 — Assessor feedback:

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.

Task 22 ― Preparing a preliminary assessment

Preparing a preliminary assessment is required under the NCCP Act. In this task, you are required to prepare a preliminary assessment for Case study 2: Mary Azacca.

Task 22: Question 1

Before preparing the preliminary assessment, under best interest duty, you need to assess if there is a benefit to the customer by switching loans.

To determine if there is a benefit for the client you need to go to the MoneySmart website. Using the mortgage switching calculator, you need to:

(a) provide the result using the calculator

(b) explain if the customer will benefit from switching lenders.

The MoneySmart link can be located in the Toolbox.

(50 words)

Student response to Task 22: Question 1

(a) Answer here

(b) Answer here

 

Assessor feedback

Resubmission required?

Task 22: Question 2

Will Mary be required to pay LMI? Explain why or why not.

(20 words)

Student response to Task 22: Question 2

 

Assessor feedback

Resubmission required?

Task 22: Question 3

Using the information gathered from your customer, Mary Azacca, you are required to prepare the preliminary assessment.

Part of the preparation will require you to use a home loan comparison website and use that information to prepare the preliminary assessment below.

Preliminary Assessment

Student response to Task 22: Question 3

Applicant 1

Full name (Client 1) Answer here

REQUIREMENTS AND OBJECTIVES

Reasons for seeking credit or reviewing an existing contract, and the resulting benefit Answer here
Specific features requested, and any risks or costs Answer here

 

MONTHLY FINANCIAL POSITION

Current

Proposed

Total monthly after tax income: (A) Answer here Answer here
Total monthly repayments: (B) Answer here Answer here
Total monthly living expenses: (C) Answer here Answer here
TOTAL MONTHLY NET SURPLUS (A-B-C) Answer here Answer here
Foreseeable material financial changes, and resulting plan to meet the ongoing obligations

 

RECOMMENDED PRODUCT PARTICULARS
PRODUCT 1 PRODUCT 2 PRODUCT 3
Lender’s name
Loan product:
Loan Amount:
Term in years
Monthly repayments
Other loan details:
CONFLICT OF INTEREST DISCLOSURE:

Has any conflict of interest which may disadvantage the client been identified in relation to the recommended product?

SUITABILITY:
I consider that based on the information provided by the client and further enquiries that the loan proposal is
‘not unsuitable’ for the client.

Indicate yes or no and provide supporting comments.

 

Assessor feedback

Resubmission required?

Task 22: Question 4

Of the three loans recommended in the preliminary assessment, which loan product would you recommend to Mary, and why? (30 words)

Student response to Task 22: Question 4

 

Assessor feedback

Resubmission required?

Task 22: Question 5

Does Mary qualify for any government concessions or stamp duty reductions?
Explain why or why not. (20 words)

Student response to Task 22: Question 5

 

Assessor feedback

Resubmission required?

Task 22: Question 6

What other issues may impact, now or in the future, on the Mary’s ability to meet her obligations, including any possible risks? (30 words)

Student response to Task 22: Question 6

 

Assessor feedback

Resubmission required?

Task 22: Question 7

You are required to present your analysis and recommendations to your client. On this occasion you will make your presentation in an email. You will gather some of the information from your preliminary assessment and you will also need to include the following information.

• Provide a brief summary of your understanding of the clients’ needs (this could be an outline summary of their proposed loan structure).

• Provide a brief summary of the clients’ current financial position (use information from the case study).

• Give an explanation of the product options evaluated that meet their needs (you should have researched at least three (3) lenders as part of the preliminary assessment) and details of the loan features. Use the internet or, if working in the industry, internal software to do this.

• Explain the option you recommend and the reasons for the recommendation — including the loan amount, term and repayments. Explain how the recommended product meets the clients’ needs (refer to the case study)

• Invite questions from the client and respond in a follow-up email accordingly.

• Seek agreement from the client to proceed with the product recommendation.

(200 words)

Student response to Task 22: Question 7

 

Assessor feedback

Resubmission required?

Task 22: Question 8

Mary has responded to your email asking some questions.

To: Broker 1

Broker1@CCF&MB.com.au

From: [email protected]

Re: Recommendation

Dear broker,

Thank you for providing your recommendation for the home loan product for my refinance application.

I have some questions I am hoping you can answer for me:

1. I want to open a bank account to make sure there is somewhere for any disbursement of surplus funds from the refinance settlement and also for my periodical payments to be debited from. What options do I have to apply to open a bank account?

2. What ID will I need to provide to open a new bank account?

I look forward to receiving your reply.

Thank you.

Mary Azacca

Send a reply email to Mary to answer her questions.

(100 words)

Hint/Tip:

You will need to conduct your own research to answer this question. Refer to the Toolbox for a suggested website.

Student response to Task 22: Question 8

 

Assessor feedback

Resubmission required?

Task 22: Question 9

In the course of your interactions with Mary, you have gathered or completed a number of documents, which include, for example, the completed fact find with credit representative notes, the preliminary assessment and assorted communication with her. How and where would you file this information?

(30 words)

Student response to Task 22: Question 9

 

Assessor feedback

Resubmission required?

Task 22 — Assessor feedback:

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.

Case study 3: Ravi & Alice Patel

Case study 3 for Ravi & Alice Patel is located in the subject room.

Task 23 ― Case study: Purchasing an investment property

Ravi and Alice Patel have approached you to arrange finance to purchase an investment property. The clients have already paid the 10% deposit, so you will need to act fast as they need to settle in 60 days.

Following the initial meeting, the clients have provided all of the essential documents to prepare a loan submission.

Task 23: Question 1

To commence the process, you need to enter the information collected into your aggregator’s CRM system. This will include:

(a) client information collection tool/fact finder

(b) assets and liabilities

(c) needs analysis

(d) credit representative notes

(e) anticipated fees and charges

(f) funds to complete.

Student response to Task 23: Question 1

Client information collection tool/fact finder

Appointment date: Student to insert date

Appointment time: Student to insert time

Applicant 1

Applicant 2

Surname Answer here Answer here
Other names Answer here Answer here
Contact details Address Answer here Answer here
Phone (W)

Phone (H)

Answer here Answer here
Mobile Answer here Answer here
Email Answer here Answer here
Employment Answer here Answer here
How long? Answer here Answer here
Previous employer
(if less than two years)
Answer here Answer here
How long? Answer here Answer here
Employment type
(FT/PT/casual/self-employed)
Answer here Answer here
Gross income (p.a.) Answer here Answer here
Number of dependants Answer here Answer here
Motor vehicles:

make/model/year/value $

Toyota Prado 2015

Answer here Answer here
Loan purpose Answer here
Purchase price/valuation Answer here
Deposit on property Answer here
Loan amount Answer here

Assets and liabilities

Assets

Liabilities

Details

Market value

Details

Monthly payments

Amount owing

Owner occupied property at:

Answer here

Mortgage with:

Penrith Mutual Home Loan

Answer here

Answer here

Investment property at:

Answer here

Mortgage with:

Answer here

Answer here

Cash at bank
(includes fixed deposits)

Answer here

Car leasing

Answer here

Answer here

Other cash
(includes offset accounts)

Answer here

Personal loans

1.

2.

Answer here

Answer here

Deposit paid on property (only if paid)

Answer here

Overdraft

Answer here

Answer here

Motor vehicles:

1. Toyota Prado 2015

2.

Answer here

Other loans:

1.

2.

Answer here

Answer here

Personal effects

household effects

Answer here

Credit card limit:

Answer here

Answer here

Answer here

Business value (if self-employed)

Answer here

Credit card limit:

Answer here

Answer here

Answer here

Shares and investments

Answer here

Other:

Answer here

Answer here

Superannuation

Ravi

Alice

Answer here

Other:

Answer here

Answer here

Other assets (give details)

Boat: Bar crusher 2017

Answer here

Other:

Answer here

Answer here

Total assets

Answer here

Total liabilities

Answer here

Answer here

Surplus/deficiency: (Total assets less Total liabilities) $Answer here

CURRENT MONTHLY LIVING EXPENSES (Provide a breakdown of the total amount listed in the case study — use your discretion)

Food/housekeeping
Insurance
(e.g. motor vehicles, home contents/ building, medical, life/income protection)
Utilities (e.g. rates, gas, electricity, transport)
Transport (e.g. public transport, petrol, registration, repairs)
Education (e.g. school, college, university)
Dependants support (e.g. childcare, child maintenance)
Entertainment (include online subscriptions, e.g. Netflix/Stan)
Other (detail below):
MONTHLY LIVING EXPENSES

Answer here

Needs analysis

1 Name of your current lender? Answer here
2 What type of loans do you have? Answer here
3 Why did you choose this particular loan and lender? Answer here
4 What is the interest rate on your current loan? Answer here
5 What are your payments? Amount Answer here
6 Frequency Answer here
7 Do you know the fees and charges? Answer here
8 What is your proposed purpose for the new loan you are applying for? Answer here
9 Branch access available with current lender Answer here
10 Internet banking available with current lender Answer here
11 Phone banking available with current lender Answer here
12 Lenders not to be considered Answer here
13 Type of loan sought Answer here
14 Preferred Interest rate range Answer here
15 Payment frequency Answer here
16 Redraw Answer here
17 Offset Answer here
18 Salary crediting Answer here
19 Low fees and charges Answer here

Credit representative notes

Note: Providing substantive notes here is a compulsory part of your assessment.

Anticipated fees and charges

Anticipated purchase price Answer here
Deposit on property Answer here
Total Loan amount Answer here
LVR % Answer here
Purchase costs Answer here
Stamp duty – Transfer of Land

Registration fee – Transfer of Land

Solicitor/conveyancer fee Answer here
Rates and land taxes (estimate) Answer here
Pest inspection (estimate) Answer here
Building inspection (estimate) Answer here
Borrowing costs Answer here
Application/establishment fee
Valuation fee Answer here
Security admin fee Answer here
LMI Answer here
Registration of mortgage Answer here
Discharge/release of mortgage fee Answer here
Search fees Answer here
Other Answer here
Total purchase and borrowing costs Answer here

Funds to complete

PURCHASE AND LOAN COSTS:

AVAILABLE FUNDS:

Purchase price:

Answer here

Deposit if already paid to agent:

Answer here

Lender application/valuation fees:

Answer here

Cash savings:

Answer here

Stamp duty payable ― Transfer of Land

Answer here

Sale proceeds:

Answer here

Registration fee ― Transfer of Land

Answer here

Registration of Mortgage ― Land Titles Office

Answer here

Gift:

Answer here

Solicitors fees:

Answer here

FHOG:

Answer here

Other

Answer here

Other:

Answer here

Lenders mortgage insurance

Added to loan

Answer here

Other:

Answer here

TOTAL COSTS (A):

Answer here

TOTAL OWN FUNDS (D):

Answer here

LOAN AMOUNT REQUESTED (B):

Answer here

OWN FUNDS REQUIRED (A–B) = C:

Answer here

OWN FUNDS REQUIRED (A–B) = C

Answer here

SURPLUS/SHORTFALL (D–C)

Answer here

Assessor feedback

Resubmission required?

Task 23 — Assessor feedback:

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.

Task 24 ― Preparing a loan proposal

After completing your investigation into what loan options are available, you are ready to proceed and prepare a loan proposal for the clients Ravi and Alice.

During discussions with the clients, they have confirmed their willingness to cross-collateralise their owner‑occupied property as equity to purchase the investment property. So, you have agreed to send them an email and propose two options to finance the investment property.

Firstly, you are required to complete the credit proposal disclosure to attach to your email presentation.

Credit proposal disclosure

This document provides information on commissions and certain fees and charges the broker or other parties may receive in relation to the proposed loan or lease.

Task 24: Question 1

You now need to complete a credit proposal. For this task you will need to use an online loan comparison website and to complete the template below.

Lender information: The lender is paying an upfront commission of 0.65% of the loan amount and a monthly trail based on 0.15% of the loan balance.

Student response to Task 24: Question 1

Customer(s) full name(s)
Address
Phone and email
Proposed finance

Interest rates and repayments may change if the lender changes its interest rate.

Lender:

Split 1 Purpose:

Finance amount:

Interest structure:

Interest rate:

Term:

Repayments:

Other features

Split 2 Purpose:

Finance amount:

Interest structure:

Interest rate:

Term:

Repayments:

Other features:

Total loan amount

$

Fees payable by you to us.
These fees are payable by you.

$

Commission is payable for:
Commission payable by:
Commission payable to:
Reasonable estimate of commission:

___% of the amount of credit limit shortly after the finance is provided. We estimate this to be $_____.

___% per annum of your amount owing from time to time payable monthly. We estimate the largest monthly payment to be $__.

 

Estimate of total fees and charges payable to the financier in relation to applying for the finance.
These fees are payable by you
.

Note: These figures are estimates only and the final figures will be shown in your credit contract or lease. Some (or all) of these fees may be paid from the finance proceeds.

We are not aware of any other fees or charges payable to anyone else in relation to the application for finance, but the financier may impose some additional requirements.

Application fee:

Establishment fee:

Lenders mortgage insurance:

Valuation fee:

Transfer duty fees

Refinancing fees:

Discharge fee:

Other known costs

Total

$

$

$

$

$

$

$

$

$

 

Assessor feedback

Resubmission required?

Task 24: Question 2

Now that you’ve completed the credit proposal disclosure, you will need to write your email to the client. You must cover the following points, namely:

• a summary of your understanding of the clients’ needs (this could be an outline summary of their proposed loan structure)

• a brief summary of their current financial position (use information from the case study)

• your explanation of the minimum of two (2) product options evaluated that meet their needs and details of the loan features (use the internet or, if working in the industry, internal software)

• the option you recommend and the reasons for the recommendation — including the loan amount, term and repayments; explain how the recommended product meets the clients’ needs (refer to the case study); and explain why you recommend this lender.

• invite questions from the client and respond in a follow-up email accordingly

• provide a section for the client to provide you with permission to proceed.

(200 words)

Student response to Task 24: Question 2

 

Assessor feedback

Resubmission required?

Task 24: Question 3

Ravi has responded to your email asking some questions.

To: Broker 1

Broker1@CCF&MB.com.au

From: ravi.patel@jayzar.com.au

Re: Recommendation

Dear broker,

Thank you for providing your recommendation for the home loan product for our refinance application. I have some questions I am hoping you can answer for us:

1. Can you please explain our rights for obtaining a written assessment.

2. Do you have to provide us with a comparison rate with your home loan product recommendations, and can you please explain the difference between the interest rate and the comparison rate?

3. We would like to negotiate the application fee or the interest rate for the product you’ve recommended.
Can you please advise how much you can negotiate for either the interest rate or the application fee on our behalf?

Thank you and regards,

Ravi Patel

Send a reply email to Ravi to respond to those questions.

(100 words)

Student response to Task 24: Question 3

 

Assessor feedback

Resubmission required?

Task 24 — Assessor feedback:

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.

Task 25 ― Loan contracts and security documentation

Task 25: Question 1

When checking the loan offer contracts received from the lenders, what key points should you check to ensure the documents are accurate?

List a minimum of six (6) points. (20 words)

Student response to Task 25: Question 1

 

Assessor feedback

Resubmission required?

Task 25: Question 2

If there is a guarantor involved, what type of professional should you recommend the client refer their loan contracts to prior to signing and why is this so important? Include which code you would be adhering to in doing so. (20 words)

Student response to Task 25: Question 2

 

Assessor feedback

Resubmission required?

Task 25: Question 3

The clients have chosen to sign their contracts with you, in your capacity as a broker. Describe how you would explain the loan offer and security documentation to the client, as well as gain confirmation of their understanding of approval conditions of their finance.

Hint/Tip:

Include the sections of the loan offer that you would cover in your explanation to the client.

Refer to the topic notes and the sample Letter of Offer in the subject room.

(100 words)

Student response to Task 25: Question 3

 

Assessor feedback

Resubmission required?

Task 25: Question 4

(a) Now that the client has signed the documents, explain how you will submit the documents to the lender.

(b) Include a comprehensive list of the documents that the lender will require in order to proceed with settlement. This may also include lender-specific documents for the new loan account etc.

(50 words)

Student response to Task 25: Question 4

(a) Answer here

(b) Answer here

 

Assessor feedback

Resubmission required?

Task 25: Question 5

Explain to your client how you will communicate with them throughout the settlement process; include the method of communication and the timeframes. (This should be in line with the organisation service standards as outlined in the Toolbox.)

(20 words)

Student response to Task 25: Question 5

 

Assessor feedback

Resubmission required?

Task 25: Question 6

You have just received a call from the lender to advise the documents have been executed correctly. Describe how you will notify the client. (15 words)

Student response to Task 25: Question 6

 

Assessor feedback

Resubmission required?

Task 25 — Assessor feedback:

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.

Task 26 ― Preparing the loan for settlement

Although a broker does not participate in the settlement process, they still need to remain in touch with all the stakeholders until the loan settles. Before the loan can settle the borrower needs to adhere to
pre-settlement conditions.

Task 26: Question 1

In the pre-settlement phase, there are items that need to be checked and satisfied. For each one, explain why it is required (i.e. what is the importance of each of item):

(a) building insurance

(b) independent legal advice.

(40 words)

Student response to Task 26: Question 1

(a) Answer here

(b) Answer here

 

Assessor feedback

Resubmission required?

Task 26: Question 2

Explain the settlement process to the client, include the personnel who are involved at each step.

(100 words)

Student response to Task 26: Question 2

 

Assessor feedback

Resubmission required?

Task 26: Question 3

Explain a minimum of four (4) examples of issues that can occur which may delay or prevent a settlement.
(80 words)

Student response to Task 26: Question 3

 

Assessor feedback

Resubmission required?

Task 26: Question 4

Explain the steps in the process of registering security documentation. (50 words)

Hint/Tip:

In addition to the topic notes, you may also be required to undertake your own research.

Student response to Task 26: Question 4

 

Assessor feedback

Resubmission required?

Task 26: Question 5

When the lender is ready for settlement, they will contact the borrower’s solicitor and inform them of the expected settlement date, and request details of funds to be distributed at settlement.

The lender will then prepare a pre-settlement costing sheet and forward to the borrower’s solicitor in preparation for settlement. With the broker working closely with the borrower’s solicitor, when they receive a copy of the costing sheet, the broker can then make sure that all the particulars are correct.

For this task you are required to prepare the following pre-settlement statement for the purchase of the investment property for Ravi and Alice Patel.

Student response to Task 26: Question 5

Purchaser/s:
Property:
Purchase
Purchase price:
Less:
Deposit paid ( )
Subtotal
Adjustments
Plus Council rates
Less
Amount due on settlement to vendor
Disbursements
Eastern Conveyancing
Land transfer/stamp duty & fees
Amount due on settlement from purchaser

 

Assessor feedback

Resubmission required?

Task 26: Question 6

You are now at the closing stages of the loan process with this client.

(a) How and where do you file the information you have communicated with them?

(b) Once the settlement concludes, what else would you do to ensure you communicate with this client effectively?

(30 words)

Student response to Task 26: Question 6

(a) Answer here

(b) Answer here

 

Assessor feedback

Resubmission required?

Task 26 — Assessor feedback:

[insert feedback]

Date assessed:

 

Does the student need to resubmit?

 

Questions that need to be resubmitted

First submission

 

Resubmission

 

End of