Diploma of Finance and Mortgage Broking Management (DFMB1_AS_v1A3)
Written Assignment
Diploma of Finance and Mortgage Broking Management (DFMB1_AS_v1A3)
Student identification (student to complete)
Please complete the fields shaded grey.
Student number 10810379
Written assignment overall result (assessor to complete)
Result first submission Not yet demonstrated
Parts that must be resubmitted
See below
Result resubmission (if applicable) Not applicable
Result summary (assessor to complete)
Section 1: Industry knowledge First submission Resubmission (if required)
Task 1: Key termsDemonstrated
Not applicable
Task 2: The Australian financial marketDemonstrated
Not applicable
Task 3: Financial services legislation and industry codes of practiceDemonstrated
Not applicable
Task 4: Products and servicesNot yet demonstrated
Not applicable
Section 2: Business skills
Task 5: Effective communicationDemonstrated
Not applicable
Task 6: Professional developmentDemonstrated
Not applicable
Task 7: Respond and report on complaintsNot yet demonstrated
Not applicable
Task 8: Professional networksDemonstrated
Not applicable
Section 3: The lending process
Task 9: Understanding the clients needsDemonstrated
Not applicable
Task 10: Developing and presenting solutionsNot yet demonstrated
Not applicable
Task 11: Packaging the application to send to the lenderDemonstrated
Not applicable
Task 12: Monitor the lending processDemonstrated
Not applicable
Section 4: Case Studies
Task 13: Case study Purchasing an owner-occupied homeNot yet demonstrated
Not applicable
Task 14: Completing the Fact findNot yet demonstrated
Not applicable
Task 15: Assessing the clients situationNot yet demonstrated
Not applicable
Task 16: Presenting borrowing options and potential benefitsDemonstrated
Not applicable
Task 17: Supporting the client to settlementDemonstrated
Not applicable
Task 18: Case study Refinancing a home loanNot yet demonstrated
Not applicable
Task 19: Preparing a Preliminary AssessmentNot yet demonstrated
Not applicable
Task 20: Case study Purchasing an investment propertyNot yet demonstrated
Not applicable
Task 21: Preparing a loan proposalNot yet demonstrated
Not applicable
Task 22: Loan contracts and security documentationNot yet demonstrated
Not applicable
Task 23: Preparing the loan for settlementNot yet demonstrated
Not applicable
Please note: To pass this written assignment, you will need to be assessed as DEMONSTRATED in either your firstsubmission oryour resubmission in all tasks above.
Task feedback
Please refer to the assessors detailed feedback found at the end of each task so that you know what to do for any tasks you need to resubmit.
A poor 1st attempt. You need to firstly read your course notes thoroughly prior to attempting your resubmission. Once read then you need to action one task at a time once you have read and understood each question within the task. Most of your answers were not researched and total lack of understanding of case study and most task questions. Refer to your topic notes and case study prior to attempting your resubmission attempt. You will need to ensure accuracy of figures if you want to be competent. All the very best. (Please keep your original answers and complete your re-submission answers in a different colour.)
Before you begin
Read everything in this document before you start your written assignment for Diploma of Finance and Mortgage Broking Management (DFMB1_AS_v1A3).
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
Task 1: Key terms
Task 2: The Australian financial market
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: Respond and report on complaints
Task 8: Professional networks
Section 3: The lending process
Task 9: Understanding the clients needs
Task 10: Developing and presenting solutions
Task 11: Packaging the application to send to the lender
Task 12: Monitor the lending process
Section 4: Case studies
Task 13: Case study 1 Purchasing an owner-occupied homeTask 14: Completing the Fact find
Task 15: Assessing the clients situation
Task 16: Presenting borrowing options and potential benefits
Task 17: Supporting the clients to settlement
Task 18: Case study 2 Refinancing a home loan
Task 19: Preparing a preliminary assessment
Task 20: Case study 3 Purchasing an investment property
Task 21: Preparing a loan proposal
Task 22: Loan contracts and security documentation
Task 23: 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 thewritten assignment within your enrolment period. Your study plan is in the KapLearn Diploma of Financeand Mortgage Broking Management (DFMB1v1) subjectroom.
Instructions for completing and submitting the writtenassignment
Completing the 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_Assignment_versionnumber_Submissionnumber (e.g. 12345678_DFMB1_AS_v1A3_Submission1).
Include your student ID on the first page of the assignment.
Before you submit your work, please do a spell check and proofread your work to ensure that everything isclear 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 tool, 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 clients requirements, to source indicative interest rates and to calculate any fees and charges that may be applicable.
Submitting the written assignment
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Do not remove any sections of the document.
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Once you submit your written assignment for marking you will be unable tomake any further changes to it.
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Your Written Assignment and Oral Assignment must be submitted together on or before your due date. Please check KapLearn for the due date.
The written assignment marking process
You have 12 weeks from the date of your enrolment in this subject to submit your completedassignment.
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 written and oral assignment and return it to you in the Diploma of Financeand Mortgage Broking Management (DFMB1v1) subject room inKapLearn under the Assessment tab.
Make a reasonable attempt
You must demonstrate that you have made a reasonable attempt to answer all of the questions in yourwritten assignment. Failure to do so will mean that your 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
Assignment tasks 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 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 units ofcompetency in this subject, including:
all of the exam questions
the written and oral assignment.
Not yet demonstrated and resubmissions
Should sections of your 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 requiredlevel.
You must address the assessors 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 your resubmission. Yourassessor will be in a better position to gauge the quality and nature of your changes. Ensure you leave your first assessors comments in your assignment, so your second assessor can see the instructions that were originally provided for you. Do not change any comments made by a Kaplanassessor.
Units of competency
This written assignment is your opportunity to demonstrate your competency against these units:
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
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 student support staff.
Assignment tasks (student to complete)
Please note: Throughout the assignment, you are to assume that you are a Finance and Mortgage Broker. Ifyou 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 Lender- A lender is a person, a public or private organisation, or a financial institution who lends money to a person or a business with the expectation of repayment. In other words, lending refers to making a wide range of secured and unsecured loans available to consumers and other borrowers for a range of purposes.
Borrower- A borrower is an individual or entity that is using money, assets, or services on credit. The concept most commonly applies to the lending of funds, where a borrower applies for a loan, and there is a credit evaluation by the lender. The lender may also require that the borrower provide collateral that the lender can access if the loan is not repaid in a timely manner. The borrower agrees to certain repayment terms and conditions as part of the loan agreement.
Lessor and lessee Lessor- Lessor is a Participant of the lease who takes possession of the property as a leasing subject to the lessee for temporary possession for example, in leasehold estate, the landlord is the Lessor and the tenant is the Lessee. The Lessor may be the owner of the property or an agent authorized on the owners behalf. Commercial banks, Credit non-bank organisations, leasing companies often act as a Lessor.
Lessee- A lessee is a person who rents land or property from a lessor. The lessee is also known as the tenant and must uphold specific obligations as defined in the lease agreement and by law.
Mortgagee and mortgagor Mortgagee- A Mortgagee is a lender: specifically, an entity that lends money to a borrower for the purpose of purchasing real estate. In a mortgage transaction, the lender serves as the mortgagee and the borrower is known as the mortgagor.
Mortgagor: A Mortgagor is a borrower: an entity that borrows money from a lender to purchase real estate property. The mortgagor is approved by the mortgagees underwriters. The mortgagor is responsible for timely repayment of the borrowed amount to the mortgagee.
CITATION Jul21 l 1033 (Kagan, 2021)
2.In your own words, complete the table below; define and explain the documentation used by lenders:
Credit check signed authority These refer to the authorities that create and keep hold of an entity or individuals credit reports.
Guarantee It is a legal document through which a lender ensures that the liability of a debtor will be met. The entity fulfilling a guarantee takes upon to pay the lender if the borrower makes a default.
Loan contract This document legally binds the lender and the borrower and sets out the terms and conditions of the loan.
Periodical payment authority This allows an entity or the individuals bank to make periodical payments for a fixed amount at regular intervals on his behalf to the lender.
Signed application form This refers to a loan application form that has been accepted and duly signed according to specified protocols.
3.In your own words, complete the table below; describe:
The negotiation process It is the process by which one acceptable price at specified terms is agreed on by the seller and the buyer. Both parties come to reach some compromise without arguing and putting forward their respective asks for other to agree.
Customer Relationship Management (CRM) tool It is the tool used by businesses to manage all their current customer and potential customer relationships. It tracks and organises all communications with the customers.
Certificate of Currency It confirms the current policy to be in place at the date of issue, listing the specifics and details of the insurance policy.
CITATION gui l 1033 (guild insurance, 2022) HYPERLINK l "Resultssummary" Assessor feedback for Task 1 Key terms
You have demonstrated a good understanding of the topics covered in this question and achieved competency in this section.
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Demonstrated
Resubmission (ifrequired) Not applicableTask 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 Australias central bank and is responsible for monetary policy; financial and payment systems; and other financial matters.
Task 2: Question 1(a)
Research the RBA website and answer the following questions:
Hint/Tip:
There is a link to the website in the Toolbox
Watch the Monetary Policy Framework video in the RBA website.
List the three (3) statutory objectives (key elements) the RBA sets out to achieve.
(20 words)
Student response to Task 2: Question 1(a)
Three statutory objectives that the RBA sets out to achieve are as follows: -
The Economic Prosperity and the Welfare of Australian People
Price Stability and
Full Employment
CITATION res l 1033 (reserve bank of australia, 2022)Task 2: Question 1(b)
It is important that the RBA have the controls you mentioned in part (a).
(i)In your own words, explain what monetary policy involves.
(ii)Explain the RBAs inflation target (e.g. what is the target, and over what period)
(25 words)
Student response to Task 2: Question 1(b)
(i) The monetary policy includes the setting of interest rates for the money market overnight.
(ii) The inflation target of RBA is a medium term average and it should be available at all times.
CITATION Res l 1033 (Reserve Bank of Australia, 2022)Task 2: Question 1(c)
The RBA meet on the first Tuesday of each month to review the cash rate.
(i)What is the role of the cash rate?
(ii)Name three (3) things that the cash rate has an impact on.
(25 words)
Student response to Task 2: Question 1(c)
(i) Cash rate plays a role of determination of rates of interest during a night for the overnight funds.
(ii) Cash rate impacts the rate of spending by households, investments done by the households and the
rate of exchange in the market.
HYPERLINK l "Resultssummary" Assessor feedback for Task 2 The Australian Financial Market
You have demonstrated a good understanding of the topics covered in this question and achieved competency in this section.
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Demonstrated
Resubmission (ifrequired) Not applicableTask 3: Financial services legislation and industry codes ofpractice
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:
(a)Identify the names of two (2) regulations/legislations and two (2) Codes of Practice that you need to keep up-to-date with.
(b)Provide the website name and URL address of each of the Regulations/Legislation and codes of practice from (a).
(c)Explain how these websites are helpful for keeping up to date with changes.
(40words)
Student response to Task 3: Question 1
(a)Regulation/legislation name (b)Website name and URL address (c)Explain how this website is helpful to keep up to date with changes
1. RG273 Mortgage Brokers: Best Interest Duty Australian Securities & Investments Commission (ASIC)
https://asic.gov.au/ All relevant updates and changes regarding regulations on mortgage broking industry are updated on the following website for reading
2. RG45 Mortgage Schemes: Improving Disclosure for Retail Investors Australian Securities & Investments Commission (ASIC)
https://asic.gov.au/ All relevant updates and changes regarding regulations on mortgage broking industry are updated on the following website for reading
(a)Code of Practice Name (b)Website name and URL address (c)Explain how this website is helpful to keep up to date with changes
1. Professional Indemnity Insurance Mortgage and Finance Association of Australia
https://www.mfaa.com.au/ All relevant updates and changes are updated on the following website for reading regarding the Codes of Practice on Mortgage broking Industry
2.Contracts with Consumers Mortgage and Finance Association of Australia
https://www.mfaa.com.au/ All relevant updates and changes are updated on the following website for reading regarding the Codes of Practice on Mortgage broking Industry
Task 3: Question 2
(a)In your own words, describe the key features of the National Consumer Credit Protection Act 2009 (NCCP).
(b)Provide one (1) example of how the NCCP Act would be implemented into a work situation for a mortgage broker.
(c)List two (2) risks and the consequences that are associated with not complying with the NCCP legislation.
(50 words)
Student response to Task 3: Question 2
The NCCP Act 2009 helps in the provision of efficient financial services with fairness and honesty, ensuring no disadvantage is faced by clients due to conflict of interest, adherence to the act and its codes; providing internal dispute resolution procedures.
CITATION Zac16 l 1033 (Swan, 2016)The mortgage broker is bound to work under the provisions of the NCCP act. The mortgage agreements include clauses from the act that are binding on the broker.
Risk of loan repayments being defaulted on, undue advantages taken by brokers from clients and consequences may include fines and penalties imposed on the mortgage broker and in extreme cases the license being forfeited.
Task 3: Question 3
(a)In your own words, describe the key features of the Privacy Act 1988.
(b)Provide one (1) example of how the Privacy Act would be implemented into a work situation for a mortgage broker.
(50 words)
Student response to Task 3: Question 3
The Privacy Act 1988 helps in promotion and the safety of an individuals personal information and also regulates the handling of personal information of members by the Australian government agencies and organisations.
CITATION Aus l 1033 (Australian Government, 2022)In a real-life situation, the mortgage broker will seek a client for its firm, briefing him about the strict compliance of the Privacy Act by its company and also provide the client with information on the guidelines that he and his firm is bound to follow under the act. Thus, gaining clients confidence in the process.
Task 3: Question 4
(a) In your own words, describe the Anti-Money Laundering and Counter Financing Act 2006 (AML/CTFAct).
(b)Describe a situation where a mortgage broker would have to comply with the AML/CTF Act.
(50 words)
Student response to Task 3: Question 4
The Anti-Money Laundering and Counter Financing Act 2006 imposes organisational obligations to seek the proper identity of the borrower, keep exact records and carry out proper consumer due diligence process.
CITATION Off l 1033 (Office of Australian Information Commissioner, 2022)In an ideal mortgage situation, the broker will collect authentic ID proofs (passport, drivers licence, etc.) from the client during the costumer registration process and will verify the IDs before registering the client.
Task 3: Question 5
(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 5
The key features of codes of practice include its a set of enforceable rules and regulation, they are a standard measure put in place to regulate any industrial code. Its purpose is to ensure the occupational health and safety and provide guidelines on how to comply with legal obligations.
CITATION Raj l 1033 (Maurya, 2022)
The appropriate institution seek to regulate the members work in practice. Adhering to the code is mandatory for a member. Violating a code may result in removal, suspension or penalization.
Task 3: Question 6
(a)In your own words describe the best interest duty.
(b)Provide one (1) example of how the best interest duty would be implemented into a work situation for a mortgage broker.
(50 words)
Student response to Task 3: Question 6
Best Interest Duty ensures that a client is provided advise that suits his needs and financial condition, also the broker assists the consumer in his best interest.
CITATION Hom l 1033 (Home Loan Experts, 2022)The best interest duty can be written down into the policy statement of a broker firm and codes set to ensure the members follow the policy principles. Review and oversight of practices by senior management and independent auditors is essential to ensure that the code and principle is practiced in real business situations.
Task 3: Question 7
(a)How would you communicate any changes in regulations, legislation, or codes of practice to your work colleagues?
(b)Explain how you would execute the changes to your organisations policy, procedures and practices to ensure that you are meeting the changes, for example, The introduction of Best Interest Duty.
(80words)
Student response to Task 3: Question 7
Changes to regulations, legislations or codes of practice should be effectively communicated to ones work colleagues by being clear and honest about the changes for the colleagues to discuss upon, discussion on and providing training for the new changes to the staff, having a proper two-way communication with the colleagues for free opinions and suggestions would help the them to better understand and clear doubts
CITATION Car20 l 1033 (Duncan, 2020)When executing changes to organisational policies, procedures and practices in regards to Best Interest Duty to ensure one is meeting the changes, following steps may be followed: -
Having proper and clear consultation with the staff/colleagues on their opinions and suggestions regarding the change
Appropriate duties of every employee to be described and defined through discussion and policy documents
Making public the policies and documents for the colleagues at the workplace
Task 3: Question 8
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 8
Regulations and codes are generally from our own common sense and for our work benefit. One must act as an employee would in all situations, i.e. in clients interest with smiling face.
Task 3: Question 9
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 audit.
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 will you record the outcomes?
(150 words)
Student response to Task 3: Question 9
Development of proper Risk Management Practices for identification and treatment of risks. Regular oversight of the office and work environment to ensure best safety practices is essential to ensure that legal provisions are properly followed in the line of mortgage broking business as well. Appointing a safety officer to execute the plan, analyse risks and reporting such events is vital to compliance of regulations. Proper instructions and training should be given to colleagues when injected into the organisation.
Appropriate independent professionals or specialists can be hired or consultants recruited in the particular areas of expertise, i.e. audit and monitor, for the proper and safe execution of business. New businesses may unknowingly enter into a default or infringe the law that can lead to legal and financial troubles for the firm. Hence proper monitoring and audit of practices by professionals is necessary for the firm.
Competent compliance software should be deployed by the firm. The compliance software will have relatively lower or no risk of mistakes or inaccuracies than the humans. The legal documents will be properly organised and schedules will be set in order with proper reminders in place.
Formally writing down of the consent and the reason for such consent is a good practice for records keeping. Taking appropriate notes of the start and end date of the consent should be done. Documentation of the permission wherever required for the consent is necessary along with the technique to seek such permission. Screenshots or photographs can also be included or attached to documents
Task 3: Question 10
What information needs to be retained by financial services organisations that has been provided by your client?
(50 words)
Student response to Task 3: Question 10
Following information needs to be retained by the financial services organisations that is provided by the clients: -
Personal Identification documents for communication purpose.
Signature (Digital or paper based).
Information regarding Contact number, mail for immediate communication purpose.
All invoices indicating bank transactions
Credit card information
HYPERLINK l "Resultssummary" Assessor feedback for Task 3 Financial services legislation and industry codes of practice
You have demonstrated a good understanding of the topics covered in this question and achieved competency in this section.
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission DemonstratedResubmission (ifrequired) 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 clients 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.
An example is provided in the Toolbox
1.Variable Rate Home Loan Package 2.Fixed Rate Home Loan 3.Interest Only Home loan
Financial institution & name of product Westpac
New Flexi First Option Home Loans ING
Fixed Rate Home Loan Standard Chartered
Interest Only Home Loan
Product characteristics (features)
List a minimum of three (3) key features 1. Unlimited extra repayments
2.Redrawal of additional funds
3. Combination with a fixed rate 1. Repayment Certainty
2. Fixed Interest rate discount
3. No ongoing fees to be paid 1. Repayment of only interest up to 3 years
2. EMI includes interest and principal later
3.greater time period of loan repayment
Product purpose (whatwould a client use this for?) Lower in interest rate Fixed monthly payment option Ease of Interest payment only without principal in initial years
Applicable Fees & Charges $395 annual package fee $499 $250
List a minimum of three (3) key terms and conditions of this product 1. Minimum Loan amt $250k and LVR up to 80%
2. Apply between 1st December 2021 to 31st May 2022 and settle by 31st August 2022 for refinance applications
3. Offer may be varied or withdrawn at any time 1. Rate to be fixed throughout
2.Break cost could be substantial
3. amount of credit to be borrowed in one lump sum 1. fixed interest only amount
2. Loan repayment amount may be high with long tenure
3. Non payment of interest added to overall loan amount.
List one (1) Strength & one(1) weakness Strength: Benefit of decrease in rate
Weakness: Disadvantage due to rate rise Strength: Benefit when rate rises
Weakness: Disadvantage if rate falls Strength: Lower payments initially
Weakness: Longer loan period with bigger amount to actually repay
4.Home equity loan (lineof credit) 5.Credit Card 6.Personal Overdraft
Financial institution & name of product Bank of America
Home equity line of credit Citi Bank
Citi Clear Credit Card Comm Bank
Personal Overdraft
Product characteristics (features)
List a minimum of three (3) key features 1.Borrowed against the equity of home
2.rate generally lower than other forms of credit
3.most of the product have variable rate 1.Card sync with apple and Samsung pay
2.Ongoing monitoring, global fraud protection and Citi alerts
3.complementary insurance cover on eligible purchases 1. Use facility via Comm bank key card or Debit mastercard
2.overdraft facility connected to Comm bank everyday account
3.No usage will mean no cost. Interest and fee only when used.
Product purpose (whatwould a client use this for?) Funding home renovations, unexpected expenses and educational costs too Client uses it for easy access to credit, swiping at online store with deferred repayment options Client can continue paying bills even when there are insufficient funds with him
Applicable Fees & Charges
List a minimum of three (3) key terms and conditions of this product 1. Eligibility to be determined within 3 or more working days
2.Benefit is no-transferrable
3.Assumptions are based on a $100,000 line of credit $99 p.a. annual fee
1.for Permanent Australian resident only
2.Minimum income of $35,000 pa
3.personal details ready for online application $10 if used more than $10 prior month or no fees
1.Fees and interest charged on the first day of each month
2.Repayment by putting money in transaction account
3.adjustments may be made to the end of day balance for any differences
List one (1) strength & one(1) weakness Strength: No application fee, closing costs or annual fee.
Weakness: The home will be used as a collateral Strength: 0% p.a. on balance transfers for 36 months with no balance transfer fee
Weakness: Balance transfer reverts to the high 22.24% p.a. Cash Advance rate. No interest-free days apply to retail purchases while you have a balance transfer.
Strength: No fee charged for the period the facility is not used
Weakness: Facility may be secured against business asset
Task 4: Question 2
Describe how you would determine the most suitable product or service for a client?
(20 words)
Student response to Task 4: Question 2
Through direct phone contact with the customer one would get to know the exact product that will satisfy clients needs price expectations.
Task 4: Question 3
Conduct your own research and describe the current home loan industry trends. Provide a minimum of three (3) current trends.
(50 words)
Student response to Task 4: Question 3
The pandemic situation adversely hit the home loan industry: -
the demand for offices and properties have gone up.
The Interest rates dropped and the payback periods got longer, which compensated for the rise in prices.
The society moved to more digital platform. Digitally signed forms and terms of business were available.
CITATION Eri21 l 1033 (Levin, 2021)Task 4: Question 4
(a)How do financial service providers market and/or promote their products and services?
(b) Where can you locate a lending organisations 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 4
Financial service providers promote their products through advertisements on TV, radio, print media and social networking platforms.
Promotions and specials by lending organisations are nowadays available on the social media and sometimes through staff providing pamphlets regarding such offers.
Identifying an appropriate client can be done through a proper strategy which can be AIDAR Awareness, Interest, Desire, Action and Retention.
To maintain up-to date product knowledge - regular hands-on experience is required along with creative information sources, practice opportunities to be made available, microlearning, proper training.
Task 4: Question 5
The ABAs Banking Code of Practice outlines several obligations for the provision of financial products and services. The Code can be downloaded from the Australian Banking Association (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 Banking Code of Practice, 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 5
Loan contracts or any documents regarding the financial services and the data privacy agreements.
Loan contracts describe important client protection guidelines for loan contracts and a loan contract summary page. On the other hand, a data privacy agreement explains how the institution will keep client data private and establishes client responsibilities for keeping their own data secure.
The Code has identified four key drivers that can lead to customers becoming vulnerable:
Health
Life events
Resilience
Capability
One can identify customers who are experiencing potential vulnerability or having a low-income is by initially having a one-to-one meeting. The bank would also look into the financial history and conduct background verification process to know the customer better.
Task 4: Question 6
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 6
A deposit bond is a substitute for a cash deposit in case of buying a property.
A buyer uses it when he/she is unable to come up with a deposit in cash or has non-liquid assets.
CITATION hom l 1033 (homeloan experts, 2022)
HYPERLINK l "Resultssummary" Assessor feedback for Task 4 Products and services
Task 4.5
Competency not yet Demonstrated
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.
Please refer to the BCOP Chapter 11 What information we will give you
https://www.ausbanking.org.au/wp-content/uploads/2021/10/2021-5-Oct-Banking-Code-WEB.pdf
Task 4.5c
Competency not yet Demonstrated
What four (4) factors does the Code advise about providing banking services to vulnerable clients?
Refer to Chapter 14 part 41
Q4.5d
Competency not yet Demonstrated
You appear to have misread the question
According to the BCOP, how would you identify (become aware of) a potentially vulnerable client and a client on a low-income?
Question(s) that need to be resubmitted (if required) 4.5a,b,c,d
First submission Not yet demonstrated
Resubmission (ifrequired) Not applicableSection 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
Verbal Communication It helps to interact with the client by speaking about ones ideas, opinions an suggestions. Its essential to develop a good rapport with the listener.
Non-verbal These are the gestures, expressions or the actions that we perform while we communicate. Sometimes the actions speak louder than words. It helps to incite trust with the client.
Written It is the clear articulation of facts, ideas or expressions in a written format, sentences, words or phrases. It can be digitally delivered as well. The most important feature is its recorded and works as a proof in case of need.
Visual It is the presentation of ideas in a photographic, diagrammatic or graphical format. It gives a concise idea of the factual information and is time saving as well. Its beneficial when one wants to communicate a creative idea. The visuals are much more expressive and refreshing.
CITATION nov l 1033 (novoresume, 2022)
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
Listening helps to grasp and understand the actual idea or information that the speaker wants to convey to the listener. This helps in effective two-way communication. It builds trust and avoids misunderstanding and conflicts.
(b) Barriers to effective listening are outside distraction, prejudice and too much information
Task 5: Question 3
List five (5) tips to help someone communicate more effectively when communicating with individuals and/or groups from different cultural backgrounds.
(50 words)
Student response to Task 5: Question 3
Keeping the information simple will help the group with different backgrounds to understand easily.
Maintenance of proper etiquettes while communicating would imbibe the culturally diverse listeners to gain trust and involvement through being formal
Avoid using slang words as it may have different meanings for different people
Asking questions that require explanations rather than ones which have to be answered in yes or no are comfortable for groups to attempt.
Allow everyone in the group to speak which will allow influx of better ideas and involvement of all members of the group.
CITATION Bar20 l 1033 (Barrette, 2020)
HYPERLINK l "Resultssummary" Assessor feedback for Task 5 Effective communication
You have demonstrated a good understanding of the topics covered in this question and achieved competency in this section.
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Demonstrated
Resubmission (ifrequired) Not applicableTask 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.
It is your responsibility to be proactive with your performance and development. This requires you to understand how your role and performance impacts the organisation.
Your manager has advised you that you will be participating in a one-on-one performance and development meeting in the near future. Your manager has given you the task of being proactive to ensure you are aware of what is expected of you in your role, what your roles goals are and how your role goals align with the organisations goals.
In preparation of your performance and development meeting, you will undertake the necessary research by answering the following questions:
During the meeting, you will be required to explain a number of items to your manager, as well as explain how you will maintain your performance and professional development.
Task 6: Question 1
(a)Explain why is it important for your individual work goals to align to the organisations goals?
(b)Identify the types of organisational framework that you can refer to when planning your work goals to ensure that they align to the organisations goals.
(c)List the colleagues you would consult with if you were unsure of your own role responsibilities and how that fits into the wider organisation.
(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
The individual work goals need to be aligned with the organisational goals in order to avoid ambiguity and incongruence in goals.
While planning individual work goals one must refer to the company goal policies and objectives that need to be achieved. Alignment of goals with the organisational objectives is necessary for organisational performance and personal growth in a simultaneous manner.
The go-to colleagues in case of confusion can be team members, team leaders, mentors, workers on the same position as and business partners.
Task 6: Question 2
(a)Where would you document (record) your role responsibilities and role specific targets?
(b)Explain how you will set goals to ensure you will achieve your set role expectations and targets.
(50 words)
Student response to Task 6: Question 2
Role responsibilities and the role specific targets are to be documented in Job Description, should include the general and specific duties to be fulfilled, the job criteria and qualification.
One should define targets required to be achieved, the means and capabilities required to achieve those targets and the time frame to be set to be effective.
Task 6: Question 3
(a)How and where can you record and document your personal and professional development goals?
(b)List a minimum of four (4) types of professional development activities that a Finance and mortgage broker could undertake to maintain their required Continuous Professional Development (CPD) obligations.
(50 words)
Hint/Tip
You may wish to refer to the MFAA and FBAA websites for some ideas.
Student response to Task 6: Question 3
Setting up of work plans and targets to be achieved. Programmes and schedules of delivering tasks should be well documented. The personal achievement rewards and notes from seniors and managers should be kept as work records for future references in the personal file cabinet.
- Taking part in periodic workshops at the workplace or offices,
- in-class observation,
- the single session related workshops should be regularly attended to stay up-to date with the new skills and capabilities, and
- regular discussions and consultations from seniors and experienced professionals in similar field is important.
Task 6: Question 4
(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:
Include two (2) targets or KPIs that you need to improve on (These can be hypothetical yet should be relevant to a broker role).
Develop a goal for each target/KPI to ensure you will achieve your goals within the year.
Show the steps/actions you will take to achieve the goals.
Identify two (2) professional development areas that you would like to improve.
Locate two (2) formal training or continuous professional development activities that relate to the industry (refer to industry associations for ideas).
Include the minimum amount of CPD points you would be required to maintain if you were a MFAA member holding loan writing status (a link is available in the Toolbox).
(b) Explain how often you would review and update your Personal Development Plan and who you would consult with to ensure you are maintaining and managing your personal development.
(100 words)
Student response to Task 6: Question 4
Professional Development Plan for a broker role: -
Effective communication skills and the persuasion/negotiating skills.
Attend a local monthly Communication and Management Skills Development Programme and track improvement meet new and successful entrepreneurs in the business and take note of their key success mantras on client negotiation and persuasion, try imbibing same in self.
Staying up to date with the latest property prices and interest rate and scheme offers by subscribing top journals and websites, building up broader client network through effective advertisement strategy, working on and providing top quality services
Legal and regulatory knowledge and Customer Relationship building skills
Industry conferences on latest brokerage trends and periodic workshops at workplaces
Minimum 30 CPD points to be earned as a member of MFAA in the loan writing status
There should be a minimum of quarterly review of the PDP plan developed with regular updates as and when necessary due to changing scenarios and skill updating requirements. The immediate reporting manager would be an appropriate person for consultation on the aptness of the plan.
Task 6: Question 5(a)
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 conducting your own research regarding the important/urgent matrix. There are many short videos available for example, TheEisenhower matrix: How to manage your tasks with Eisenhower, 3September 2012, viewed 3May 2021, <https://www.youtube.com/watch?v=tT89OZ7TNwc>.
Make a list of the 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. You must list a minimum of twelve (12) tasks.
(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 5(a)
Management of Lead response and follow-ups, maintenance of a Customer Relationship Management System, Planning and budgeting for marketing, safekeeping expenses and receipts for tax purposes, scheduling an open house, posting the property to MLS, attending professional development courses, coffee at the local board office for meetings, attending home inspection and appraisals, negotiating offers, showing properties and client mails and phone calls
CITATION Rea22 l 1033 (Real Estate Express, 2022)Task 6: Question 5(b)
Once you have listed your job tasks above (from part a), place each task in the appropriate quadrant.
(30 words)
Important/Urgent
attending home inspection and appraisals, negotiating offers, scheduling an open house, posting the property to MLS Important/Not Urgent
showing properties, maintenance of a Customer Relationship Management System, safekeeping expenses and receipts for tax purposes, Management of Lead response and follow-ups, attending professional development courses
Not Important/Urgent
client mails and phone calls Not Important/Not Urgent
coffee at the local board office for meetings, Planning and budgeting for marketing
Source: Marquette Educator HYPERLINK l "Resultssummary" Assessor feedback for Task 6 Professional development
You have demonstrated a good understanding of the topics covered in this question and achieved competency in this section.
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Demonstrated
Resubmission (ifrequired) Not applicableTask 7: Respond and report on complaints
Refer to the Toolbox for helpful links and the organisations Policies and Procedures regarding handling complaints and disputes.
Task 7: Question 1
(a)What is the name of the external dispute resolution scheme for the financial services industry?
(b) In accordance with the industrys external resolution scheme, who should a client refer their complaint to in the first instance?
(c) 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 7: Question 1
(a) Australian Financial Complaints Authority
In accordance with the rules the complain should initially be registered with AFCA which is then referred to further authorities.
The 5 steps that are followed if complain not resolved within 30 days are: -
- tell customer reasons for delay
- tell date by which result of investigation will be given
- give customer monthly updates on progress
- tell about right to complain to AFCA if dissatisfied
- provide consumer with contact details of AFCA
CITATION Aus1 l 1033 (Australian Banking Association, 2022)Task 7: Question 2
Consider the following scenario.
Mr Joseph Harper, a new client, has called your office and has complained about the time it is taking to get a decision on his loan application which was submitted 10 days ago.
The average turnaround time with this lender is 14 working days. The loan also requires lenders mortgage insurance (LMI), which could add a further two days to the assessment time frame.
The client had been expecting a decision for three days now and is getting quite anxious as theyve made an offer on a property subject to finance. They only get 14 days to confirm finance approval so he is very worried they 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 the client.
You may refer to the Toolbox for your organisations Policies and Procedures regarding handling complaints and disputes.
(80 words)
Student response to Task 7: Question 2
Steps to be taken to resolve complaint: -
Register the complain of Mr. Harper in the appropriate complaint form
Open up a ticket for the complain
Check with the concerned personnel handling Mr. Harpers case and communicate the problem
If need be then the senior or team leader on the concerned case needs to be informed
Check with the lender institution on the proposal progress and if the LMI process can be somehow started and finished within the coming 2 days.
Client would need to be communicated the appropriate resolution through a phone call and mail that the decision would be finalised in the next coming day as the concerned agent was busy with the approvals and paperwork and the LMI would also be done in the subsequent 2 days and he can make a decision a day before the lender turnaround.
Task 7: Question 3
Complete the customer report below based on the scenario in question 2.
Student response to Task 7: Question 3
Customer complaint report
Customer name Title (Mr, Mrs, etc.) Family Name (surname) Given Names
Mr. Harper Joseph
Service being provided to client:
Broker Finance Service
Nature of complaint:
Urgent
Outcome:
Issue resolved
HYPERLINK l "Resultssummary" Assessor feedback for Task 7 Respond and report on complaints
Q7.1b
Competency not yet Demonstrated
You have wrongly answered this question
In accordance with the industrys external resolution scheme, who should a client refer their complaint to in the first instance? Refer to the Toolbox for helpful links and the organisations Policies and Procedures regarding handling complaints and disputes
https://www.afca.org.au/make-a-complaint/complain/internal-dispute-resolution-tips
Question(s) that need to be resubmitted (if required) 7.1b
First submission Not yet demonstrated
Resubmission (ifrequired) Not applicable
Task 8: 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.
(a)Identify and make a comprehensive list (minimum of 10 internal and external networks). Thiscaninclude 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 8: Question 1
work colleague, media advertisement partner, local broker association, friends, loan saction officer, partner real estate advocate, old customers, new potential customers with properties listings, local coffee shop owner, contractors and property repair vendors.
(b)
Network Benefit You
1. loan sanction officer Has the power to approve and sanction loans in the concerned lender bank. Can assist in information and advice on beneficial proposals and deals.
2. local coffee shop owner Everyday new people come in for a drink or snack at the shop. Prospective buyers and sellers can be identified looking for brokers in the local area.
3. contractors and property repair vendors Information and prospective chances on new properties and customers.
Network Benefit to the business
4.work colleague Can also be a work friend. Can provide with new deals which he/she may not have time to entertain. New updates and ideas on latest news and trends and experiences.
5. friends An informal channel to promote ones business to their further acquaintances and friends. A good friend will always spread good things about you.
6. local broker association Latest industry news and problem are discussed and solutions are come up with. New connections are made with like professionals.
(c)
Network/Connection Name Type of Network/Connections Actions you take to Develop & Maintain the relationship
1. local coffee shop owner external Regular visits to the shop even with friends and family. New referrals and deals finalised can be accompanied with a small commission to the shop owner.
2. friends External Sufficient time spent on outings and parties with friends. Asking them for any new referrals and giving them business card for further references.
3. work colleague Internal Regular discussions and time with colleagues. At times helping them out with their work problems. Keeping a check on their well being too.
(d)
Communication method Why is this method important?
1. Meetings Its a formal way of one to one communication. Most effective method.
2. Mails and phone calls To keep in touch with the potential customers and ongoing deals with current clients. Official mails are utmost important part of business.
3. Brochures Can be put up at all locations where gatherings happen, public places for everyone to read about ones business. Is quite cheap too.
Task 8: 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 8: Question 2
Networking can be done with external entities or individuals who can be competitors too, so one should apply appropriate sensibility and privacy of information, giving away only that much which is important. Proper regulations and codes of practice need to be adhered to when promoting ones business. The behaviour and attitude need to be professional and polite. In no case should the client confidentiality be hampered.
Task 8: 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 8: Question 3
Attending Industry events can help to develop and maintain important networks. Their one meets like-minded people from similar industry. New ideas and practices can be gathered here. One should be at such gatherings even if its a regular meetup.
The right person to review ones network connection would be the team leader/reporting manager as he/she would the person you interact with the most at work. He/she is anyways the reviewer of ones tasks and work as well. Who else could professionally understand you better but him/her. Also the manager would be an experienced professional with good networks.
HYPERLINK l "Resultssummary" Assessor feedback for Task 8 Professional networks
You have demonstrated a good understanding of the topics covered in this question and achieved competency in this section.
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Demonstrated
Resubmission (ifrequired) Not applicable
Section 3: The lending process
Task 9: Understanding the clients needs
Brokers have both ethical and legislative obligations to understand a clients needs and objectives. Thereare obligations for making reasonable inquiries and verifications under the NCCPs responsible lending obligations contained in ASICs Regulatory Guide 209 (RG209).
Task 9: Question 1
Research RG209.43 and list What are your obligations for making reasonable inquiries and verifications under this regulation? List all three (3).
(50 words)
Student response to Task 9: Question 1
The following are the obligations that need to be adhered to by the financial broker: - Make inquiries related to consumers requirements and objectives related to the credit product.
Make inquiries about the financial situation of consumers.
To take reasonable and appropriate steps for the verification of the current financial situation of consumers.
Task 9: Question 2
Whilst it is important to understand your clients 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.
(20 words)
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.
Student response to Task 9: Question 2
Four types of specific customer requirements are as follows:
Setting the right price or discounts to attract customers.
Quality of product.
Product functionality.
Reliability of the product.
Task 9: Question 3
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 9: Question 3
Financial records of lender are as follows:
Loan application - The first step for applicant is to fill loan application.
Proof of identity Drivers Licence, Passport, Birth certificate, Social security card etc.
Employer and income verification Bank Statement, 1099s, Income tax returns etc.
Task 9: Question 4
(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 upfront?
(c)What are the credit providers 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 9: Question 4
(a) The information contained in a credit report includes information to identify about your name, address, employer and Date of Birth and includes information about current consumer loans or debts and repayment history.
(b) If client provides all the details about their credit report to their broker upfront then it will help to speed up the loan approval process and also it results in lower interest rate after getting both positive and negative details of clients credit history.
(c) Credit providers obligation is to ask for Clients permission to view their credit report and give information to a credit reporting agency about the client.
(d) We can suggest client to request for a lower loan amount, increase down payment, provide some other collateral, suggest to improve their credit score, pay off some debts.
HYPERLINK l "Resultssummary" Assessor feedback for Task 9 Understanding the clients needs
You have demonstrated a good understanding of the topics covered in this question and achieved competency in this section.
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Demonstrated
Resubmission (ifrequired) Not applicableTask 10: Developing and presenting solutions
Task 10: Question 1
When developing solutions for a client, what tools are available for a broker to conduct their product research? (Name a minimum of two (2))
(10 words)
Student response to Task 10: Question 1
Customer Relationship Management Software.
Lead Generation tool.
Task 10: Question 2
What steps would you take when presenting loan solutions to a client to ensure it is effective in meeting their needs and objectives?
(50 words)
Student response to Task 10: Question 2
The steps to follow to have an effective loan solution are as follows:
Build your network and relationships.
Be Visible.
Know your client.
Discussion about the benefits.
Avoid technical expressions.
Highlight the distinct offer.
Keep it short.
Task 10: Question 3
The client solution is not just about providing a product that will meet their product needs. Developing a solution for your clients 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. (Thiscan 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 10: Question 3
(a) Cash, stocks, bonds, Jewellery, vehicles, bank accounts, Properties, Ships etc.
(b) Security Agreement, Guarantee, Collateral Agreement
(c) The name of the security document that director offers for lending his home as a security which is required to link the asset to the loan is Collateral Agreement.
(d) Mortgage Insurance.
HYPERLINK l "Resultssummary" Assessor feedback for Task 10 Developing and presenting solutions
Task 10.2
Competency not yet demonstrated
Insufficient content in your answer
Please refer to Topic 3-2 Part 4 Develop a customer presentation
Q10.3c
Competency not yet Demonstrated
what is the name of the security document that is required to link the asset to the loan?
Please refer to Topic 3-1: Understanding the clients needs Topic. Please read headings Collateral & security instruments.
Refer Topic 3-1.13 Collateral, Guarantees
Q10.3d
Competency not yet demonstrated
What is this name of this practice? Mortgage Insurance is incorrect
Please refer to Topic 3-1: Understanding the clients needs Topic. Please read headings Collateral & security instruments. Also refer to Topic 3-2.20 Part 7.1 Security structuring
Question(s) that need to be resubmitted (if required) 10.2, 10.3c,d
First submission Not yet demonstrated
Resubmission (ifrequired) Not applicableTask 11: 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 lenders 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 11: Question 1
(a)Explain what documents you would gather to in order to verify:
(i)a PAYG employee income
(ii)a self-employed persons 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 the documents provided.
(60 words)
Student response to Task 11: Question 1
(a)
(i) PAYG withholding, PAYG payment summaries
(ii) Bank Statements, Annual tax returns.
(iii) Investment property income and expenses spreadsheets.
(b)
Document Write one (1) question to confirm information with your client
1. PAYG payment summaries Do you know the purpose for registering for the PAYG payment summaries and what all amount are included in this document?
2. Annual tax returns Do you file your tax returns every financial year or not?
3. Investment property income How many properties are there for an existing investment property?
Task 11: Question 2
When submitting your clients loan application, you also need to submit supporting documentation.
(a) Explain how you confirm that you have the correct supporting documents for your clients loan requirements in accordance with the lenders requirements. (For example. If the loan application was for an investment property, there would be specific supporting documents for this loan requirement.)
(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 11: Question 2
a) The supporting documents for your clients loan requirements are bank statements, tax forms and other financial documents in order to check the creditworthiness of the client.
(b) To check the supporting documents bank requires 1 or 2 days to review the papers which needs to submit and transfer them to the verification department for review.
HYPERLINK l "Resultssummary" Assessor feedback for Task 11 Packaging the application to send to the lender
You have demonstrated a good knowledge of the topics covered by this task
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Demonstrated
Resubmission (ifrequired) Not applicableTask 12: 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 12: 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 12: Question 1
Common reasons for additional information include verification of the sustainability of the source of fund of consumer and need for contingency plan in case the borrower loses his primary source of income.
HYPERLINK l "Resultssummary" Assessor feedback for Task 12 Monitor the lending process
You have demonstrated a good knowledge of the topics covered by this task
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Demonstrated
Resubmission (ifrequired) Not applicableSection 4: Case studies
Case study 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 brokers office or in the clients home or workplace. As technology has developed, it has allowed us to utilise different forms of client contact by using software such as Zoom. Conducting online meetings has become more acceptable and can also be quite convenient for some clients.
Task 13: 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 13: 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) What information would you include in the email about your service?
(50 words)
Student response to Task 13: Question 1
Certificate of Establishment, brochure regarding the types of properties dealt in, Fees and taxes details involved, any recognitions and awards presented to the firm.
Information about service would include helping buyers in negotiating deals, helping buyers in checking the genuineness of properties, meeting the sellers and the buyers of properties.
Task 13: Question 2
How do you assess the need to adjust your interpersonal style to communicate with different types of clients effectively?
Providetwo (2) examples (e.g. when you are dealing with a difficult client, or someone whose first language is not English).
(30 words)
Student response to Task 13: Question 2
To communicate with different types of client effectively his/her goals and needs have to be understood and analysed, the way of communication that he is most comfortable in has to be improvised, the polite and adjustable speaker will definitely win his heart over.
With a difficult client or one with different language - One must use polite hand gestures and expressions to communicate and express ideas. If the language is different one must try to speak phrases and words in the language that can build up trust. Knowing And learning the language of the client is an added advantage. Try showing the decisions and process taken up for review to the client and taking feedback if he/she its fit and appropriate for his goals.
CITATION Ind21 l 1033 (Indeed Editorial Team, 2021)Task 13: Question 3
At the initial interview, the broker obtains all the facts needed to conduct a preliminary assessment for the client and to prepare a proposal which may contain several loan product options. When presenting the solution, the broker should present it in a way that makes it understandable for the client.
List at least three (3) steps a broker should take when presenting and explaining the solution to the client.
(30 words)
Student response to Task 13: Question 3
Make the points that the broker wants to convey to be as clear and concise as possible.
The broker needs to ask questions and feedback on what client understands from the proposal at each stage. This helps him to clear any doubts and misunderstandings.
Try giving only those points to the client that matter to the client and only concerns him.
HYPERLINK l "Resultssummary" Assessor feedback for Task 13 Purchasing an owner-occupied home
Task 13.1a
Not Yet Competent
You have not correctly identified the two statutory documents you are likely to have attached to read prior to the meeting.There are two document you need to attach. One is given at initial contact and another if you charge your client a fee given the volume of work required to approve a loan with the new legislation.
Please refer to Topic 3.1, section 13 in your course material, section 113 and 114 of the Australian Consumer Credit Legislation and resubmit
Question(s) that need to be resubmitted (if required) 13.1a
First submission Not yet demonstrated
Resubmission (ifrequired) Not applicableTask 14: Completing the fact find
Task 14: Question 1
From the information in the case study for Jennifer and Philip Brown, complete the following tasks.
Using the client information collection tool/Fact finder, complete:
assets and liabilities
needs analysis
credit representative notes
anticipated fees and charges
funds to complete.
Student response to Task 14: Question 1
Client information collection tool/Factfinder
For the client information collections tool/Fact finder tasks you will need to calculate government fees and charges as well as Lenders Mortgage Insurance (LMI) where applicable.
For this assignment, Genworth is your lenders 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: 17/03/2022
Appointment time: 11:00 Am
Applicant 1 Applicant 2
Surname Brown Brown
Other names Philip Jennifer
Contact details Address Unit 12, 22 Wentworth Lane, Thomastown VIC 3074 Unit 12, 22 Wentworth Lane, Thomastown VIC 3074
Phone (W)
Phone (H) 0419123456
0419123456 0412987654
0419123456
Mobile 0419123456 0412987654
Email philipb@ace.com.au jbrown@techcity.com.au
Employment ACE Limited, 101 City Road Westside, Melbourne VIC 3000 Tech City, 804 High Street, Docklands VIC 3008
How long? 12 years 11 years
Previous employer (if less than two years) Not applicable in this case Not applicable in this case
How long? Not applicable in this case Not applicable in this case
Employment type (FT/PT/Casual/Self-employed) Full Time Full Time
Gross income (p.a.) $58,000 p.a. $95,000 p.a.
Number of dependants 0 0
Motor vehicles
Make/Model/Year/Value $ Holden Colorado 2012 Kia Cerato Sport 2015
Loan purpose Owner Occupied
Purchase price/Valuation $490,000
Deposit on property $77,000
Loan amount $440,000 + LMI
Borrowing capacity (using Genworth serviceability calculation) Assets and liabilities ( this template is completed prior to purchase)
Assets Liabilities
Details Market value Details Monthly payments Amount owing
Owner Occupied Property at:
$515,000 Mortgage with:
N/A N/A
Investment Property at: N/A Mortgage with: N/A N/A
Cash at bank(includes fixed deposits) $82,000 Car leasing N/A N/A
Other cash(includes offset accounts) $1,600 Personal loans
1.
2. $180 $5,600
Deposit paid on property (only if paid) N/A Overdraft N/A N/A
Motor vehicles:
1.
2. $25,000
$9,000 Other loans:
1.
2. N/A N/A
Personal effects $40,000 Credit card limit:
Capital Bank $200 $4000
Business value (if self-employed) N/A Credit card limit:
Capital Bank $600 $5000
Shares and investments N/A Other: N/A N/A
Superannuation $90,000 Other: N/A N/A
Other assets (give details) N/A Other: N/A N/A
Total assets $762,600 Total liabilities $980 $14600
Surplus/deficiency: (Total assets less Total liabilities) $747,020
CURRENT MONTHLY LIVING EXPENSES (Provide a breakdown of the total amount listed in the case study use your discretion)
Food/housekeeping $2000
Insurance (e.g. motor vehicles, home contents/ building, medical, life/income protection) $1000
Utilities (e.g. rates, gas, electricity, transport) $3500
Transport (e.g. public transport, petrol, registration, repairs) $1500
Education (e.g. school, college, university) $15,000
Dependants support (e.g. childcare, child maintenance) $11500
Entertainment (include online subscriptions, e.g. Netflix/Stan) $1,000
Other (detail below): N/A
MONTHLY LIVING EXPENSES $35,500
Needs analysis
1 Name of your current lender? Capital Bank
2 What type of loans do you have? Personal
3 Why did you choose this particular loan and lender? Low Repayment
4 What is the interest rate on your current loan? N/A
5 What are your payments? Amount $5600
6 Frequency $180
7 Do you know the fees and charges? N/A
8 What is your proposed purpose for the new loan you are applying for? Property Investment Loan
9 Branch access available with current lender N/A
10 Internet banking available with current lender N/A
11 Phone banking available with current lender N/A
12 Lenders not to be considered WSB
13 Type of loan sought Property Investment Loan
14 Preferred Interest rate range 4.0%
15 Payment frequency Fortnightly
16 Redraw Yes
17 Offset Yes
18 Salary crediting Yes
19 Low fees and charges Yes
Credit representative notes
NB: Providing substantive notes here is a compulsory part of your assessment.
The terms of the borrower are understandable but will have to make some adjustments.
Anticipated fees and charges
Anticipated purchase price $515,000 ( recheck purchase price)
Deposit on property $250,000 ( is this the deposit paid to vendor? Refer to case study
Total Loan amount $440,000
LVR % 4.0%
Purchase costs NA ( need actual stamp duty based on case study location of property
Stamp duty Transfer of Land
Registration fee - Transfer of Land 41000( need actual Registration fee based on case study location of property
Solicitor/conveyancer Fee $1500
Rates and land taxes (estimate) $4000
Pest inspection (estimate) N/A
Building Inspection (estimate) $1,000
Borrowing costs $50
Application/establishment fee Valuation fee $100
Security admin fee $50
LMI N/A I( please complete LMI using GE LMI calculator) https://www.genworth.com.au/products/tools/lmi-fee-estimator
Registration of mortgage N/A This is a statutory fee undertake further research
Discharge/Release of mortgage fee N/A
Search fees $50
Other Total purchase and borrowing costs $7,700
Funds to complete
PURCHASE AND LOAN COSTS: AVAILABLE FUNDS:
Purchase price: $515,000 Deposit if already paid to Agent: $250,000
Lender application/valuation fees: $500 Cash savings: (Show client total cash savings)
Stamp duty payable - Transfer of Land Sale proceeds: Registration fee - Transfer of Land $1,000 Registration of Mortgage - Land titles office Gift: Solicitors fees: $1500 FHOG: Other Other: Lenders Mortgage Insurance
Added to Loan Other: TOTAL COSTS (A): $518,500 TOTAL OWN FUNDS (D): $77,000
LOAN AMOUNT REQUESTED(B): $440,000 ( capitalise LMI as per case study facts)OWN FUNDS REQUIRED(AB) = C: $78,000
OWN FUNDS REQUIRED (AB) = C $78,000 SURPLUS/SHORTFALL (DC) -$1,000
HYPERLINK l "Resultssummary" Assessor feedback for Task 14 Completing the fact find
Competency not yet Demonstrated
Please amend highlighted as per feedback and referring back to case study facts Philip & Jennifer Brown. Accuracy of figures is very important when giving advice
You need to research actual costs where possible and complete all templates. This is a skills test and you need to be able to demonstrate your ability to transpose and calculate accordingly.
Question(s) that need to be resubmitted (if required) 14
First submission Not yet demonstrated
Resubmission (ifrequired) Not applicableTask 15: Assessing the clients situation
Tasks 1517 are based on Case Study 1 Philip & Jennifer Brown
Based on the information gathered in the initial client meeting (in the case study) and any other online tools used, you now need toassess theclients loan application, paying particular attention that you have met regulations, legislative requirements, followed industry codes of practice and met lender credit policy.
Provide data to support your comments and conclusions.
Note: The assessment of the clients needs is a critical prelude to you completing Part 2 of the Oralassignment requirement for this course.
Task 15: Question 1
Explain the regulatory and legislative requirements that you have met so far in dealing with this application. Provide a minimum of three (3). Assume you have conducted your initial face-to-face meeting and provided and sought the necessary information; include the documents you would have provided in the initial meeting. (You are not charging a fee for service to your client) (30 words)
Student response to Task 15: Question 1
Requirements met:
1.Laws
2.Ordinances
3.Rules
Documents provided in initial meeting:
Establishment certificate
Brochure detailing our type and range of properties we deal in
Details of various fees and taxes involved
Task 15: Question 2
As part of assessing the clients situation, a broker is required to determine the approximate cost of lenders mortgage insurance (LMI).
The calculators are located in the Toolbox
(a)Will Jennifer and Philip be required to pay for Lenders Mortgage Insurance (LMI) and why or whynot?
(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:
For the purposes of this assignment, you may use the LMI premium excluding stamp duty.
Student response to Task 15: Question 2
(a) Yes, Jennifer and Philip will be liable for the mortgage payment to the lender. This is because they do not have enoughequity to cover the cost of the mortgage if they default on payments.
(b) The monthly LMI premium will be $311.97
(c) Borrowers have two alternatives when it comes to paying the LMI fee:
1) The cost of mortgage insurance can be factored into their monthly payments.
2) They have the option of paying the mortgage insurance in one big sum at closing.
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.
Task 15: Question 3
Refer to the Genworth website, under the Tools section, select the appropriate calculators to complete the following questions:
(a)What is Philip and Jennifers 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? (Capitalise the LMI cost onto the loan amount).
(30 words)
Student response to Task 15: Question 3
(a)The maximum loan amount according to Genworth serviceability calculation is $1,711,000.
(b) The combined total gross and net incomes is $180,000.
(c) The proposed monthly loan repayment, based on the actual interest rate, is $8,000.
Task 15: Question 4
Does the client have the capacity to meet the deposit and total cash contribution required for the property purchase? Explain why or why not.
(20 words)
Student response to Task 15: Question 4
No, the client does not have the capacity because they are not eligible to pay 20% of the loan amount.
Task 15: Question 5
What is the security offered for this loan? Is it an appropriate type of security? Explain why or why not.
(30 words)
Student response to Task 15: Question 5
Purchasing an owner-occupied home Mortgage is the security offered for this loan.
Yes, it is appropriate because the property pledged as security for the loan becomes a secured.
Task 15: Question 6
Prior to submitting the application, you are required to obtain a valuation on the property.
For the purposes of this assignment, the broker is to arrange the Valuation of the security prior to submitting the loan application.
Complete the template below and prepare a letter to instruct the valuer to conduct a valuation for Philip and Jennifer Brown.
Student response to Task 15: Question 6
Answer here
Property Valuation Request
Broker Details Name Contact details
Stephanie Jones 0412 880 088
Client Name Loan Type Loan Amount
Philip and Jennifer Brown Investment property $440,000
Loan Purpose
Purchase Refinance Consolidation Equity release
Property Type
Residential Commercial Vacant Land Land and construction
Property Address: : Unit 1, 92 Golf Links Way, Bundoora VIC 3083
Certificate of Title Volume 10120 Folio 456
Title Details 2-bedroom, 2-bathroom strata title apartment,
kitchen/family, lounge, 2 car garage, golf course views.
Volume:
Folio:
Folio Identifier:
Description
Year of construction 10
Number of Bedrooms 2
Number of Bathrooms 2
Car accommodation 2
Other rooms Kitchen/ Family lounge
Other features Golf Course View
Property value
Purchase price $ 490,000 Date of contract 30/ 03 / 2022
or
Land purchase price $ N/A
Building contract $ N/A
Refinance - Estimated value Range
From $ N/A
To $ N/A
Property use
Owner Occupied
Investment
Holiday Rental Rental Income
Rent per month $ .00 Actual/Proposed
Valuation type:
Full valuation:
Kerbside:
Desktop:
Task 15: Question 7
After considering the client's financial position, what loan amount would you recommend, and why?
(30 words)
Student response to Task 15: Question 7
The recommendation would be the loan amount of $250,000 because they can pay 20% of the loan amount i.e. $50,000 through their own contribution in the home loan.
Task 15: 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 15: Question 8
There is a high likelihood that the clients will be able to meet all of their financial obligations because they have all the eligible documents and possess a regular source of income.
Task 15: Question 9
Under Responsible lending requirements, brokers also need to consider foreseeable changes in a clients 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 15: Question 9
Following issues may impact the clients ability to meet their financial obligations, such as :
Time horizon
Family situation
Disruption in source of income
Instability
Losses in Financial Market
Change in interest rates
Task 15: Question 10
Most lenders stress test home loan repayments by adding a 3.00% buffer to the interest rate to make sure the borrower can afford the repayments over the medium term. If interest rates increased by 3.00%, whatwould Philip and Jennifers loan repayments be, and doyou think they would beable to cope with the extra repayment amount?
(50 words)
Student response to Task 15: Question 10
The current repayments are $1038 each week. If this rises by 3%, their monthly payment will. They are currently making a monthly gross of $4833 and a monthly net of $7917, which implies their excess income has decreased because of this they would beable to cope with the extra repayment amount.
Task 15: Question 11
(a)Identify appropriate product options you can present to the clients that may remove this interestrate risk?
(b)What advantage would this type of product provide for the customer?
(50 words)
Student response to Task 15: Question 11
(a) They could choose for a split loan. Alternatively, we may just fix the entire loan for 1-5 years at the discretion of the client; however, they would lose their flexibility in terms of redraw and repayments.
(b) Split Loan allow to fix half of their loan rate to a low rate while still allowing them the flexibility they need for extra loan instalments and redraw access.
HYPERLINK l "Resultssummary" Assessor feedback for Task 15 Assessing the clients situation
Q15.1
Competency not yet Demonstrated
Appears you have misread the question. Reasonable enquiries is acceptable.
Explain the regulatory and legislative requirements that you have met so far in dealing with this application. Provide a minimum of three (3). include the documents you would have provided in the initial meeting.
Q15.2b
Competency not yet Demonstrated
LMI amount is incorrect. Please use GE LMI calculator
https://www.genworth.com.au/products/tools/lmi-fee-estimator
amount incorrect based on your assumptions
Task 15.3
Competency not yet Demonstrated
Your amounts are totally incorrect.
(a)What is Philip and Jennifers 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? (Capitalise the LMI cost onto the loan amount).
Task 15. 4
Does the client have the capacity to meet the deposit and total cash contribution required for the property purchase? Explain why or why not.
Your deduction is incorrect based on case study facts. Please understand case study before re-attempting
Task 15. 7
After considering the client's financial position, what loan amount would you recommend, and why?
You wrote $250,000. This is totally incorrect. Refer to case study and cash savings and work out an appropriate amount
Task 15.10
Competency not yet Demonstrated
If interest rates increased by 2.5%, what would Philip and Jennifers loan repayments be, and doyou think they would beable to cope with the extra repayment amount?
Your amounts are totally incorrect. Please use case study amounts.
Question(s) that need to be resubmitted (if required) 15.1, 15.2, 15.3, 15.4, 15.7, 15.10
First submission Not yet demonstrated
Resubmission (ifrequired) Not applicableTask 16: Presenting borrowing options and potential benefits
Task 16: Question 1
Although Philip and Jennifer 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.
(100words)
Student response to Task 16: Question 1
Philip and Jennifer could consider the following measures to avoid LMI:
Make a deposit of at least 20% of the buying price.
Allow them to receive funds as actual savings in order to make the 20% deposit.
By adding another individual to the loan, you can use existing security (or guarantor)
Some professions are exempt from paying LMI, such as doctors, accountants, and lawyers. It would be beneficial to see if Jennifer can avoid the LMI by working as an accountant.
Purchase a less expensive property.
If they can acquire financial assistance (cash) from their parents, they will be able to meet the 20% deposit.
Task 16: Question 2
Describe the First Home Owner 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?
(100words)
Student response to Task 16: Question 2
The first home buyer may be eligible for a $10,000 grant under the First Home Owner Grant scheme if purchase date is on or after January 1, 2016.
The First Home Owner Grant has two eligibility requirements:
- The total value of a freshly constructed is less than $600,000.
- The total value of the land is less than $750,000.
Stamp duty is a state government tax that must be paid when a property is purchased
Philip and Jennifer, on the other hand, are ineligible because Jennifer has already bought a home with her sister, and this would be deemed a second purchase.
Task 16: Question 3
Philip and Jennifer have called to discuss whether they should 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 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.
(150words)
Student response to Task 16: Question 3
(a) Step -1 The procedure of determining which loan choices are available can be found on bank websites. It is our obligation as brokers to spell forth the possibilities for our clients.
Step 2- It's crucial to understand Philip and Jennifer's condition, including their long-term intentions and whether they'll require that flexibility in terms of accessing their loan funds.
(b) Advantages
Fixed rate loans provide cheaper interest rates than SVR loans.
It ensures that you will receive the locked rate regardless of what happens to the economy or interest rates throughout the specified time period.
It could also suggest that due to the fixed structure of the regular same-amount payment, it will be easier to budget your expenses.
Disadvantages
If interest rates continue to decline, fixed rate loans will be unable to benefit.
If you refinance your loan while it is still on a fixed rate, you will be breaking your loan and paying a charge.
You won't be able to access cash, and you won't be able to switch back to an SVR loan until the loan period is up.
Task 16: Question 4
What other option/s can you suggest if they remain uncertain about whether to fix the rate on their loan?
(100words)
Student response to Task 16: Question 4
I'd like to recommend a few options.
The first step is to settle the debt with SVR. A standard variable rate (SVR) isan interest rate set by the lender. It is the default interest rate that mortgage customers are moved onto when their initial deal ends. After the entire settlement has been completed, the consumer will have the liberty to select what they want to becompleted.
The second option is to divide the loan into two parts (half fixed, half variable). This will help Philip and Jennifer when they are facing problem regarding their rate of interest.
Task 16: Question 5
You want to ensure that Philip and Jennifer have all the key 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)
(b)Explain who you should refer Philip and Jennifer to obtain advice on these types of products.(10words)
Student response to Task 16: Question 5
(a) Processes during discussion with the client:
Client interview
Family/friend interviews
Observation data gathering
It provides opportunity to get to know the client as an individual and establish areas of potential risk. The discussion ascertains clients preferences and needs, thus helps in better analysing the clients.
(b) I should refer Philip and Jennifer to solicitors for availing the various products.
HYPERLINK l "Resultssummary" Assessor feedback for Task 16 Presenting borrowing options and potential benefits
You have demonstrated a good knowledge of the topics covered by this task
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Demonstrated
Resubmission (ifrequired) Not applicable
Task 17: 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 17: 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 17: Question 1
Brokers work for the benefit of their clients. The loan process can be a difficult and time-consuming process for clients who have a lot on their minds. The role of the broker is to guarantee that the procedure runs well and that all documentation and settlement papers are in order for the loan to be settled on time. It is necessary to be updated about the progress of the process in order to ensure appropriate time and a holistic perspective of the process so that nothing is delayed. Delays in settlement can be costly and incur substantial fines, so staying informed and up to date in everyone's best financial interest.
Task 17: 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. To improve your service delivery standards, you thought this was an appropriate time to review your client service standards. Refer to the Example of an Organisations Policies and Procedures document in the Toolbox under the section client service standards.
Following your review of the client service standards, what service standards do you think are most important to provide your client and their solicitor once the loan is approved?
(100 words)Student response to Task 17: Question 2
Client connections are critical in a firm like Mortgage Broking, and the Organization's Policies and Procedures outline the core principles and roadmap to ensure that no breaches occur and corporate ethics are prioritised. Because of the nature of a property purchase, service standards and timelines are in place to ensure that there is a clear understanding and path to ensure that all boxes are checked and nothing is left up to chance, from the contract of sale to the issue of the offer letter to the processing of mortgage documents. Because this is a legal process, the last thing the solicitor and mortgage broker want to do is allow any gaps for things to fall through.
HYPERLINK l "Resultssummary" Assessor feedback for Task 17 Presenting borrowing options and potential benefits
You have demonstrated a good knowledge of the topics covered by this task
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Demonstrated
Resubmission (ifrequired) Not applicableCase study 2: Mary Azacca
The case study for Mary Azacca is located in the subject room in KapLearn.
Task 18: Case study 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 initial meeting with Mary was conducted over Zoom. Following the meeting, Mary forwarded basic information and documents sufficient to prepare a preliminary assessment.
Task 18: 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 the case study for Mary Azacca and complete the following tasks.
(a)Using the client information collection tool / Fact finder, complete:
(i)assets and liabilities
(ii)needs analysis
(iii)anticipated fees and charges
(iv)funds to complete
Student response to Task 18: Question 1
Client information collection tool/Factfinder
Appointment date: 04/04/2022
Appointment time: 10:00 Am
Applicant 1
Surname Azacca
Other names Mary
Contact details Address 8 North Road, Rockingham WA 6168
Phone (W)
Phone (H) Mobile (08) 8594 6168
Email maryazacca@wsrtechnologies.com.au
Employment Allied Health Services Ltd, Perth WA 6000
How long? 18
Previous employer (if less than two years) N/A
How long? N/A
Employment type (FT/PT/Casual/Self-employed) Full-Time
Gross income (p.a.) $95,000 p.a., monthly gross income: $7,917
Net income (monthly) $60.00
Number of dependants 0
Motor vehicles
Make/Model/Year/Value $ Holden commodore S52007
Loan purpose To purchase an existing 45sqm sized, 2-bedroom apartment
Purchase price/Valuation $450,000
Deposit on property $100,000
Loan amount $350,000
Borrowing capacity (using Genworth serviceability calculation) $500,000
Assets and liabilities
Assets Liabilities
Details Market value Details Monthly payments Amount owing
Owner Occupied Property at: 8
North Road Rockingham Perth Western Australia $550,000 Mortgage with:
Simply Home Loan Ltd $2,292 330,000
Investment Property at: N/A Mortgage with: N/A N/A
Cash at bank(includes fixed deposits) $24,000 Car leasing N/A N/A
Other cash(includes offset accounts) $10,000 Personal loans
1.
2. N/A N/A
Deposit paid on property (only if paid) N/A Overdraft N/A N/A
Motor vehicles:
1. Holden Commodore SS 2007
2. Nissan Qashqai 2019
3. Indian Scout Motorcycle 2018. $25,000
$25,000
$18,000 Other loans:
1.
2. N/A N/a
Personal effects $115,000 Credit card limit:
Western Bank $700 ( 3% of credit card limit) $5000
Business value (if self-employed) N/A Credit card limit: N/A N/A
Shares and investments $15,000 Other: N/A N/A
Superannuation $480,000 Other: N/A N/A
Other assets (give details) N/A Other: N/A N/A
Total assets $1,262,000 Total liabilities $2992 $335,000
Surplus/deficiency: (Total assets less Total liabilities) $964008
CURRENT MONTHLY LIVING EXPENSES (Provide a breakdown of the total amount listed in the case study use your discretion)
Food/housekeeping $5,000
Insurance (e.g., motor vehicles, home contents/ building, medical, life/income protection) $2,000
Utilities (e.g., rates, gas, electricity, transport) $3,000
Transport (e.g., public transport, petrol, registration, repairs) $2,000
Education (e.g., school, college, university) $2,000
Dependants support (e.g., childcare, child maintenance) $10000
Entertainment (include online subscriptions, e.g., Netflix/Stan) $4,000
Other (detail below): MONTHLY LIVING EXPENSES $28,000
Needs analysis
1 Name of your current lender? WBC
2 What type of loans do you have? Home loan
3 Why did you choose this particular loan and lender? Efficiency
4 What is the interest rate on your current loan? 4.80%
5 What are your payments? Amount $360,000
6 Frequency Monthly
7 Do you know the fees and charges? Yes
8 What is your proposed purpose for the new loan you are applying for? Home Loan
9 Branch access available with current lender Yes
10 Internet banking available with current lender Yes
11 Phone banking available with current lender Yes
12 Lenders not to be considered N/A
13 Type of loan sought Home Loan
14 Preferred Interest rate range 4.0%
15 Payment frequency Fortnightly
16 Redraw Yes
17 Offset Yes
18 Salary crediting Yes
19 Low fees and charges Yes
HYPERLINK l "Resultssummary"Assessor feedback for Task 18 Refinancing a home loan
Competency not yet Demonstrated
Please recheck figures. Accuracy of figures very important when giving advice
Question(s) that need to be resubmitted (if required) 18
First submission Not yet demonstrated
Resubmission (ifrequired) Not applicableTask 19: 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 19: Question 1
Before preparing the preliminary assessment, under best interests duty, you need to assess if there is a benefit to the client 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. Use the Mortgage switching calculator.
(50 words)
Student response to Task 19: Question 1
(a) $463,542
(b) Yes, customer will benefit from switching lenders because interest rate will be low or can be reduced to a considerable extent. A reduction in the interest rate leads to smaller EMIs, which can increase interest savings significantly. Even a tiny difference of 0.5% p.a. in interest rate makes a difference
Task 19: Question 2
Will Mary be required to pay lenders mortgage insurance (LMI). Explain why or why not?
(20 words)
Student response to Task 19: Question 2
Yes, she will pay because she has less than 20% equity in her home due to an outstanding debt from the prior owner.
Task 19: Question 3
Using the information gathered from your client, 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 19: Question 3
Applicant 1
Full name (Client 1) Mary Azacca
REQUIREMENTS AND OBJECTIVES
Reasons for seeking credit or reviewing an existing contract, and the resulting benefit Minimize credit , maximize profits and monitor progress.
Specific features requested, and any risks or costs Monthly Financial Position
Current Proposed
Total monthly after tax income: (A) $60,000 $60,000
Total monthly repayments: (B) $10,000 $10,000
Total monthly living expenses: (C) $30,000 $20,000
TOTAL MONTHLY NET SURPLUS (A-B-C) $20,000 $30,000
Foreseeable material financial changes, and resulting plan to meet the ongoing obligations
RECOMMENDED PRODUCT PARTICULARS
PRODUCT 1: PRODUCT 2: PRODUCT 3:
Lenders name AZX ABC ADC
Loan product: Home Loan Home Loan Home Loan
Loan Amount: $350,000 $350,000 $350,000
Term in years 5 3 6
Monthly repayments $10,000 $12,000 $15,000
Other loan details: N/A
CONFLICT OF INTEREST DISCLOSURE:
Has any conflict of interest which may disadvantage the client been identified in relation to the recommended product?
SUITABILITY: Yes
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 Yes, because she won't be able to support herself while paying off two loans at the same time.
Task 19: Question 4
Of the three (3) loans recommended in the preliminary assessment, which loan product would you recommend to Mary, and why?
(30 words)
Student response to Task 19: Question 4
I will recommend PRODUCT 1 to Mary because he will manage to payback concurrently with her other outstanding car loan.
Task 19: Question 5
Does Mary qualify for any government concessions or stamp duty reductions? Explain why or why not.
(20 words)
Student response to Task 19: Question 5
Yes, she qualifies because this is her first time buying a property in the sense that it pertains to first-time home buyers.
Task 19: Question 6
What other issues may impact, now or in the future, on the clients ability to meet their obligations, including any possible risks?
(30 words)
Student response to Task 19: Question 6
The issues that may impact:-
1. The client's inability to repay outstanding loans.
2. The client's lack of trustworthiness throughout the mortgage application procedure.
3. A failure to cooperate.
Task 19: 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 lenders as part of the preliminary assessment) and details of the loan features. Use the internet or, if working in the industry, internalsoftware 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 (referto the case study).
Invite questions from the client and respond in a follow up email accordingly.
(200 words)
Student response to Task 19: Question 7
To: mary.azacca@gmail.com
FROM: broker 1@gmail.com
Subject: Recommendation
Dear Mary,
Thank you for contacting us about your house loan. I'd like to let you know that we've reviewed your application and believe that, based on your current financial situation, you should pick product 1 so that you can pay off your other outstanding loans at the same time. As understood from discussion, your financial position is good and there is likelihood that you will pay the outstanding loan amounts easily.
There are three kinds of products available for you as per your financial standing. The first one includes from the ABZ Bank, the second one is WBC Bank and the third one is AZX Bank. All these provide the home loans matching your financial standing.
I would suggest concerning your financial position to opt for monthly repayment of loan and go for the lender which provide the lowest interest rate, and reduce the duration of your loan term, this will help you to get rid of the monthly loan repayments in less time without facing any significant problem. Hope this works for you.
Please contact us for additional information or any question you may have regarding the services.
Regards
Broker1
Task 19: Question 8
Mary has responded to your email asking some questions.
To: Broker 1
Broker1@CCF&MB.com.auFrom: mary.azacca@gmail.comRe: 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 19: Question 8
FWD: To: Mary Azacca
mary.azacca@gmail.com
From: broker1@CCF&MB.com.au
Re: Recommendation
Good day, Mary. Considering your financial position, I would strongly advise you to start a savings account. This is due to the fact that your money will collect interest while it is in the bank. If you want to leave your money alone for a time, a savings account is the ideal option. Your national identification card and your social security number are required to open the account.
Please dont hesitate to reach out in case of any query. I will be more than happy to assist you.
Regards
Broker1
HYPERLINK l "Resultssummary" Assessor feedback for Task 19 Preparing a preliminary assessment
Please review entire task as you cannot just make up your own figures. It needs to be based on case study 2. Please read and understand case study prior to attempting this task. All questions in this task needs to be resubmitted
Question(s) that need to be resubmitted (if required) 19.1,2,3,4,5,6,7,8
First submission Not yet demonstrated
Resubmission (ifrequired) Not applicableCase study 3: Ravi & Alice Patel
The case study for Ravi & Alice Patel is located in the subject room.
Task 20: Case study Purchasing an investment property
Ravi and Alice Patel have approached you to arrange finance to purchase an investment property. Theclients 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 20: Question 1
To get things underway you need to enter the information collected into your aggregators Customer Relationship Management (CRM) system. This will include the following:
(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 20: Question 1
Client information collection tool/Factfinder
Appointment date: 04/04/2022
Appointment time: 11:00 Am
Applicant 1 Applicant 2
Surname Ravi Alice
Other names Patel Patel
Contact details Address 12 Mascot Street, Lidcombe NSW 2141 12 Mascot Street, Lidcombe NSW 2141
Phone (W)
Phone (H) (02) 9784 0454 (02) 9784 0454
Mobile 0419 456 123 (02) 9741 1254
Email Ravi@jayzar.com.au alicep@elitestyle.com.au
Employment Company Director-Carpenter Senior Designer (part time)- Elite Style Pty Ltd
How long? 15 years 25 years
Previous employer (if less than two years) N/A N/A
How long? N/A N/A
Employment type (FT/PT/Casual/Self-employed) Self-Employed Part-Time
Gross income (p.a.) $50,000 $45,000 p.a., monthly gross income: $3,750
Number of dependants 1 1
Motor vehicles
Make/Model/Year/Value $ Ford Ranger Raptor $68,000 N/A
Loan purpose Investment Property
Purchase price/Valuation $660,000
Deposit on property 0
Loan amount $715,000
Borrowing capacity (using Genworth serviceability calculation) Assets and liabilities ( please show all personal assets and liabilities using case study 3)
Assets Liabilities
Details Market value Details Monthly payments Amount owing
Owner Occupied Property at: $660,000 Mortgage with: N/A N/A
Investment Property at: Mortgage with: N/A N/A
Cash at bank(includes fixed deposits) $200,000 Car leasing N/A N/A
Other cash(includes offset accounts) N/A Personal loans
1.
2. N/A N/A
Deposit paid on property (only if paid) N/A Overdraft N/A N/A
Motor vehicles:
1.
2. $48,000 Other loans:
1.
2. N/A N/A
Personal effects
Household effects $140,000 Credit card limit:
$1500 $500
Business value (if self-employed) N/A Credit card limit:
$2000 $4000
Shares and investments N/A Other: N/A N/A
Superannuation
Applicant 1:
Applicant 2: $300,000
$120,000
Other: N/A N/A
Other assets (give details): N/A Other: N/A N/A
Total assets $395,000 Total liabilities N/A $450,000
Surplus/deficiency: (Total assets less Total liabilities) $387,000
RECHECK ALL YOUR FIGURES AND ENSURE ACCURACY
CURRENT MONTHLY LIVING EXPENSES (Provide a breakdown of the total amount listed in the case study use your discretion)
Food/housekeeping $2000
Insurance (e.g. motor vehicles, home contents/ building, medical, life/income protection) $1000
Utilities (e.g. rates, gas, electricity, transport) $4000
Transport (e.g. public transport, petrol, registration, repairs) $1500
Education (e.g. school, college, university) $20000
Dependants support (e.g. childcare, child maintenance) $5000
Entertainment (include online subscriptions, e.g. Netflix/Stan) $1000
Other (detail below): MONTHLY LIVING EXPENSES $34,500
Needs analysis
1 Name of your current lender? N/A
2 What type of loans do you have? N/A
3 Why did you choose this particular loan and lender? N/A
4 What is the interest rate on your current loan? N/A
5 What are your payments? Amount N/A
6 Frequency N/A
7 Do you know the fees and charges? N/A
8 What is your proposed purpose for the new loan you are applying for? Property Investment Loan
9 Branch access available with current lender N/A
10 Internet banking available with current lender N/A
11 Phone banking available with current lender N/A
12 Lenders not to be considered WSB
13 Type of loan sought Property Investment
14 Preferred Interest rate range 4.05%
15 Payment frequency Monthly
16 Redraw N/A
17 Offset N/A
18 Salary crediting Yes
19 Low fees and charges Yes
Credit representative notes
Note: Providing substantive notes here is a compulsory part of your assessment. Where are your substantive Notes? Keeping good notes on file is a requirement under NCCP in case you are audited, a complaint arises at a future time or if the client comes back at a later time with a further request. The Notes section should detail the various parts of discussion in case you need to refer to them at a later date for a loan variation or should client make a complaint against you. Please provide notes making use of the Case Study 1 information as your interview information.
The taking of notes is covered in Topic 2.2 section 11.4 Recording Customer Information, section 11.3Interactingwith a Complainant and the most relevant reference is Topic 3.1, section 25 MaintainingAppropriate Documents. Additionalinformation can also be found in ASICs Regulation Guide 205 - Credit Licensing General Conduct Obligations
Substantive adjustments are made.
Anticipated fees and charges
Anticipated purchase price $600,000
Deposit on property $50,000
Total Loan amount $550,000
LVR % 4.5%
Purchase costs $1000
Stamp duty Transfer of Land
Registration fee Transfer of Land Solicitor/Conveyancer Fee $7500
Rates and land taxes (estimate) $500
Pest inspection (estimate) $200
Building Inspection (estimate) $1000
Borrowing costs $100
Application/Establishment fee Valuation fee $100
Security admin fee $50
LMI N/A
Registration of mortgage N/A
Discharge/Release of mortgage fee N/A
Search fees $50
Other N/A
Total purchase and borrowing costs $9500
Funds to complete
PURCHASE AND LOAN COSTS: AVAILABLE FUNDS:
Purchase price: $600,000 Deposit if already paid to Agent: $50,000
Lender application/valuation fees: $200 Cash savings: N/A
Stamp duty payable - Transfer of Land N/A Sale proceeds: N/A
Registration fee - Transfer of Land $1000 N/A
Registration of Mortgage - Land titles office N/A Gift: N/A
Solicitors fees: $7500 FHOG: N/A
Other N/A Other: v
Lenders Mortgage Insurance
Added to Loan N/A Other: N/A
TOTAL COSTS (A): $608,700 TOTAL OWN FUNDS (D): $50,000
LOAN AMOUNT REQUESTED(B): $550,000 OWN FUNDS REQUIRED(AB) = C: $53,700
OWN FUNDS REQUIRED (AB) = C $53,700 SURPLUS/SHORTFALL (DC) -$3700
HYPERLINK l "Resultssummary"Assessor feedback for Task 20 Purchasing an investment property
Competency not yet Demonstrated
All your figures are made up and incorrect. Using case study 3 you need to complete all templates accurately if you want to be competent. Please recheck entire task and refer to case study amounts strictly
Question(s) that need to be resubmitted (if required) 20
First submission Not yet demonstrated
Resubmission (ifrequired) Not applicableTask 21: Preparing a loan proposal
After completing your investigating into what loan options are available, you are ready to proceed and prepare a loan proposal for the clients.
During discussions with the clients, they have confirmed their willingness to cross collateralise their owneroccupied property as equity to purchase the investment property, you 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.
(100 words)
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 21: 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 21: Question 1
Customer(s) full name(s) Ravi Patel
Address 12 Mascot Street, Lidcombe NSW 2141
Phone and e-mail (02)9785632
ravi.patel@jayzar.com.auProposed finance
Interest rates and repayments may change if the lender changes its interest rate. Lender:AZX
Split 1 Purpose: Property Investment
Finance amount: $300,000
Interest structure: Monthly
Interest rate: 4.05%
Term: 1.5 Years
Repayments: Monthly
Other feature:
Split 2 Purpose: Property Investment
Finance amount: $300,000
Interest structure: Monthly
Interest rate: 4.05%
Term: 1.5 Years
Repayments: Monthly
Other features:
Total Loan Amount $550,000
Fees payable by you to us. These fees are payable by you. $60,000
Commission is payable for Interest
Commission payable by Client
Commission payable to Lender
Reasonable estimate of commission % of the amount of credit limit shortly after the finance is provided. Weestimate 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 $500
$400
$800
$200
$450
$900
$650
$300
$4300
Task 21: Question 2
Now that you have completed the Credit Proposal Disclosure, you will need to write your email to the client.
You must cover the following points in your email:
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 product options evaluated that meet their needs (you should have researched at least two lenders) and details of the loan features; use the internet or, if working in the industry, internalsoftware to do this
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 21: Question 2
To: ravi.patel@jayzar.com.auFrom: Broker@CCF&MB.com.auSubject : clarification and recommendation
Dear Ravi
Thanks for contacting us and showing interest in our loan services; I have clearly understood your loan needs and even believe the loan purpose is a great venture; you will need to obtain a written assessment, which from your current financial situation appears to be possible; however, you will need to reconsider the various product options and choose one with lower interest rates; in this case, product1 will be suitable for your loan because it has an interest rate of 4.05 percent and a loan term of 12 months; you will need to reconsider the various product options and If you require further clarification or have unresolved queries, please contact me via email.
Regards
Broker1
Task 21: Question 2
Ravi has responded to your email asking some questions. Send a reply email to Ravi and respond to their questions.
To: Broker 1
Broker1@CCF&MB.com.auFrom: 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 youve 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 ensuring that you answer all of their questions:
(100 words)
Student response to Task 21: Question 3
FWD: To: Ravi Patel
ravi@jayzar.com.au
From: broker1@CCF&MB.com.au
Re: Recommendation
Thank you for responding to the questions. The written assessment is critical since it verifies that the loan application form has been reviewed and is available to all applicants. Both interest and comparison rates are critical because they serve different purposes: interest rate provides the exact interest a lender charges, whilst comparison provides a wide range of interest rates charged by different lenders. When it comes to negotiating the interest rate, I recommend making down payments first, and if that isn't doable, I'll work out a 0.5 percent reduction.
Regards
Broker1
HYPERLINK l "Resultssummary" Assessor feedback for Task 21 Preparing a loan proposal
Task 21
Competency not yet Demonstrated
All questions need to be resubmitted using case study 3 facts.Your answer just dont make any sense.
Question(s) that need to be resubmitted (if required) 21.1,2,3
First submission Not yet demonstrated
Resubmission (ifrequired) Not applicableTask 22: Loan contracts and security documentation
Task 22: 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).(20 words)
Student response to Task 22: Question 1
List of documents which need to be ensured:
Credit score and history
Interest
Income
Debt-to-income ratio
Collatelaral
Origination Fee
Task 22: 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 what code you would be adhering to.(20 words)
Student response to Task 22: Question 2
Legal advice from an outside source. This really is important because he will check that the guarantor is acting willingly and is fully aware of the implications of his decision. The key goal is to ensure that no improper influence is exerted.
Task 22: 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 22: Question 3
This can be accomplished by analysing the numerous loan possibilities and assisting him with financial aspects to ensure that he fully comprehends the loan offer, allowing him to evaluate the various loan products by evaluating the terms and conditions, additional fees, and interest rates. For example, some loan offers may have a lower interest rate but a larger origination charge, and it is my responsibility as a broker to ensure that the client understands the loan offer as well as the collateral required to facilitate the loan.
Task 22: 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 22: Question 4
(a) The broker's initial step is to communicate with the lender to determine what documentation is required and where the papers should be sent. It is normally located at the company's headquarters, but it is critical to be proactive and ready in case the lender requires extra information.
(b)
a pay stub from the last 30 days W-2 forms from the previous two years
Last two years' signed federal tax return
Any other sources of income
Two most recent bank statements Investment
Obtain a signed statement from the giver declaring that some of the cash were given as a gift.
Identification.
Task 22: 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 organisations service standards as outlined in the Toolbox.)
(20 words)
Student response to Task 22: Question 5
Phone calls and emails will be used as communication mediums. All phone calls must be returned as soon as possible. Any changes to the loan terms will be communicated to the client within 24 hours of receipt. After two business days, all client complaints will be addressed.
Task 22: 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 22: Question 6
I'll advise the sole agent or conveyancer that the lender has authorised the loan and that he must notify the client within 1-2 business days.
HYPERLINK l "Resultssummary" Assessor feedback for Task 22 Loan contracts and security documentation
Task 22.1
Competency not yet Demonstrated
You appear to have misread the question
You have not fully answered the question.
Reference: Topic 3-4.18
Task 22.2
Competency not yet Demonstrated
You appear to have misread the question.
Include what code you would be adhering to? Refer to https://www.ausbanking.org.au/
Task 22.3
Competency not yet Demonstrated
You appear to have misread the question
Reference: Topic 3-4, Part 4: Understanding post-approval lender documents
Task 22.4b
Competency not yet Demonstrated
You have not answered the question
Include a comprehensive list of the documents that the lender will require in order to proceed with settlement.
Reference: Topic 3-4, Part 5: Establishing the loan and disbursing funds
Question(s) that need to be resubmitted (if required) 22.1, 2, 3, 4
First submission Not yet demonstrated
Resubmission (ifrequired) Not applicableTask 23: 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 23: Question 1
In the pre-settlement phase, there are items that need to be checked and satisfied.
(a) Building insurance
(b) Independent legal advice.
Why are these two pre-settlement conditions required? Explain the importance of each of item.
(40 words)
Student response to Task 23: Question 1
(a) Having current building insurance protects the borrower's home from repossession in the event that one of the parties defaults.
(b) It is critical to obtain independent legal advice to ensure that there is no undue influence, and that the assurance has been freely agreed
Task 23: Question 2
Explain the settlement process to the client, include the personnel who are involved at each step.
(100 words)
Student response to Task 23: Question 2
In the real estate market, the settlement process is the formal process of transferring property ownership from the seller to the buyer. It is a legal process that is frequently aided by both parties' financial and legal counsel. The settlement date is normally chosen by the seller and takes place between 30-90 days. The settlement agent or solicitor meets with the lender and the buyers' representatives on the day of settlement to exchange paperwork. The lender issues financing for the acquisition of the new property and registers a mortgage against it. The solicitor ensures that the property is free of any current charges and that any individuals who may have a third-party ownership interest in the property are removed. He also makes certain that the land and mortgage transfers are lawfully recorded.
Task 23: Question 3
Explain the issues that can occur which may delay or prevent a settlement. (Provide a minimum of four (4) examples.)
(80 words)
Student response to Task 23: Question 3
Issue 1: Complications with the bank are frequently caused by the fact that the prior mortgage has not been discharged because the documentation has not been submitted.
Issue 2: Issues with the final inspection. The seller may discover problems with the utilities.
Issue 3: The importance of documentation is critical in the process, as both sellers and buyers may return unsigned documents, delaying the settlement process.
Issue 4: The sale of a subject. They're frequently brought on by a delay in the sale or purchase of a home.
Task 23: 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 23: Question 4
These are the following steps for the registration of security documentation: -
Step 1: Start application for registration.
Step 2: Filling the collateral information
Step 3: Grantor details
Step 4: Application review
Step 5: Payment
Step 6: Confirmation
Step 7: Notification of the grantors
Task 23: Question 5
When the lender is ready for settlement, they will contact the borrowers 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 it to the borrowers solicitor in preparation for settlement. With the broker working closely with the borrowers 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 23: Question 5
Purchaser/s: Ravi and Alice Patel Property: Investment property Purchase
Purchase price: $1000000
Less: Deposit paid ($450,000)
Subtotal $550,000
Adjustments
Plus Council rates Less $100,000
Amount due on settlement to vendor $450,000
Disbursements
Eastern Conveyancing $30,000
Land transfer duty & fees $20,000
Amount due on settlement from purchaser $50,000
Assessor feedback for Task 23 Preparing the loan for settlementQ23.4
Insufficient information
Explain the steps in the process of registering security documentation.
Please refer to Topic 3-4 Part 5 Fulfilling pre-settlement conditions
Q 23.5
Competency not yet Demonstrated
All your figures are incorrect . refer to case study
Question(s) that need to be resubmitted (if required) 23.4, 23.5
First submission Not yet demonstrated
Resubmission (ifrequired) Not applicableReferences
BIBLIOGRAPHY l 1033 Australian Banking Association. (2022, March 28). Australian Banking Association. Retrieved from ausbanking.org.au: https://www.ausbanking.org.au/banking-code/#:~:text=The%20Banking%20Code%20of%20Practice%20(the%20Code)%20sets%20out%20the,set%20out%20in%20the%20law.
Australian Government. (2022, March 28). Australian Government Attorney General's Department. Retrieved from Australian Government Attorney General's Department: https://www.ag.gov.au/rights-and-protections/privacy#:~:text=The%20Privacy%20Act%201988%20(Privacy,and%20in%20the%20private%20sector.
Barrette, H. C. (2020). Trends in Cognitive Sciences. In H. C. Barrette, Trends in Cognitive Sciences (pp. 620-638).
Duncan, C. (2020, August 25). Deskalerts. Retrieved from alert-software.com: https://www.alert-software.com/blog/company-policies-effective-communication
guild insurance. (2022, March 28). guild insurance. Retrieved from guildinsurance.com.au: https://www.guildinsurance.com.au/extra/certificate-of-currency#:~:text=What%20is%20a%20Certificate%20of,for%20the%20asset%20or%20business.
Home Loan Experts. (2022, March 28). Home Loan Experts. Retrieved from Home Loan Experts: https://www.homeloanexperts.com.au/home-loan-articles/best-interests-duty/
homeloan experts. (2022, March 28). homeloan experts. Retrieved from homeloanexperts.com.au: https://www.homeloanexperts.com.au/home-loan-articles/what-is-deposit-bond/
Indeed Editorial Team. (2021, June 03). Indeed. Retrieved from indeed.com: https://www.indeed.com/career-advice/career-development/types-of-clients
Kagan, J. (2021, September 18). investopedia. Retrieved from investopedia: https://www.investopedia.com/terms/m/mortgagor.asp
Levin, E. (2021, August 17). housingwire. Retrieved from housingwire: https://www.housingwire.com/articles/3-mortgage-industry-trends-that-will-define-the-rest-of-2021/
Maurya, R. (2022, March 28). digital gyan. Retrieved from digital gyan: https://digitalgyan.org/industry-code-practice-aims-codes/
novoresume. (2022, March 28). novoresume. Retrieved from novoresume.com: https://novoresume.com/career-blog/communication-skills
Office of Australian Information Commissioner. (2022, March 28). Office of Australian Information Commissioner. Retrieved from oaic.gov.au: https://www.oaic.gov.au/privacy/other-legislation/anti-money-laundering#:~:text=The%20Anti%2DMoney%20Laundering%20and,sector%2C%20gambling%20sector%2C%20remittance%20(
Real Estate Express. (2022, February 07). Real Estate Express. Retrieved from realestateexpress.com: https://www.realestateexpress.com/career-hub/become-a-real-estate-agent/what-do-real-estate-agents-do-all-day/
Reserve Bank of Australia. (2022, March 28). rba. Retrieved from rba.gov.au: https://www.rba.gov.au/
reserve bank of australia. (2022, March 28). reserve bank of australia. Retrieved from rba.gov.au: https://www.rba.gov.au/monetary-policy/
Swan, Z. (2016, May 17). lawpath. Retrieved from lawpath.com.au: https://lawpath.com.au/blog/national-consumer-credit-protection-act-2009
Written Assignment
Complex Lending and Broking (DFMB2_AS_v1)
Student identification (student to complete)
Please complete the fields shaded grey.
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Result first submission Not yet demonstrated
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Result resubmission (if applicable) Not applicable
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Task 1 Not yet demonstrated
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Task 2 Not yet demonstrated
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Task 3 Not yet demonstrated
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Task 4 Not yet demonstrated
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Task 5 Not yet demonstrated
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Feedback (assessor to complete)
[insert assessor feedback]
Before you begin
Read everything in this document before you start your written assignment for the Complex Lending and Broking (DFMB2) subject.
About this document
This document is the written assignment and includes the following:
Instructions for completing and submitting this written assignment
Section 1: Case Study 1 Ray Murdoch and Steve Brown Commercial Equipment Finance
Task 1 Identify the clients complex broking needs
Task 2 Develop complex broking options
Task 3 Implement complex loan structures
Task 4 Detailing analysis findings
Section 2: Case Study 2 Bill Smith and John Jones Commercial Premises Finance
Task 1 Identify the clients complex broking needs
Task 2 Prepare complex broking options
Task 3 Implement complex loan structures
Task 4 Detailing analysis findings
Section 3: Case Study 3 Rahn and Deepa Singh Property Development Finance
Task 1 Identify the clients complex broking needs
Task 2 Prepare complex broking options
Task 3 Implement complex loan structures
Task 4 Detailing analysis findings
Section 4: Short answer questions
Task 1 Complex collateral (specialised security)
Task 2 Complex loan structures
Task 3 Legislation and codes of practice
Section 5: Ethical Decision-making Frameworks and Principals
Task 1 Frame the ethical question applicable to the situation
Task 2 Determine ethical response to the situation
Task 3 Develop implementation plan and carry out ethical response to the situation
Task 4 Evaluate the outcomes of the ethical response
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 writtenassignment within your enrolment period. Your study plan is in the KapLearn Complex Lending and Broking (DFMB2v1) 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 this written assignment.
Name your file as follows: Studentnumber_SubjectCode_Assignment_versionnumber_Submissionnumber (e.g. 12345678_DFMB2_AS_v1_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.
The written assignment
The information and data you require to complete this written assignment is presented in the case studies which are located in the subject room.
This written assignment covers complex lending and broking and requires you to answer the questions for all five (5) sections. Each of the three (3) case studies focus on a different lending scenario and must be completed.
Word count
The word count shown in 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 this assignment, 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 in the finance industry to find the right products or services to meet your clients 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 template file will be accepted for marking by Kaplan Professional Education. You need to saveand submit this entire document.
Do not remove any sections of the document.
Do not save your completed written assignment as a PDF.
The written assignment must be completed before submitting it to Kaplan Professional Education. Incompletewritten assignments will be returned to you unmarked.
The maximum file size is 20MB for the written assignment. Once you submit your written assignment for marking you will be unable tomake any further changes to it.
You are able to submit your written 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 instructions (pdf) in the Assessment section of KapLearn for details on how to submit your written assignment.
Your written assignment must be submitted on or before your due date. Please check KapLearn for the due date.
The written assignment marking process
You have 12 weeks from the date of your enrolment in this subject to submit your completedassignment.
If you reach the end of your initial enrolment period and have been deemed Not Yet Competent 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 written assignment and return it to you in the Complex Lending and Broking (DFMB2_v1) subject room inKapLearn under the Assessment tab.
Make a reasonable attempt
You must demonstrate that you have made a reasonable attempt to answer all of the questions in yourwritten assignment. Failure to do so will mean that your 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 assignment.
How your written assignment is graded
Assignment tasks 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 competent or not yet competent.
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 competent in all assessment items in order to be awarded your qualification, including demonstrating competency in:
all of the exam questions
the written and oral assignments.
Not yet demonstrated and resubmissions
Should sections of your 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 requiredlevel.
You must address the assessors 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 your resubmission. Yourassessor will be in a better position to gauge the quality and nature of your changes. Ensure you leave your first assessors comments in your assignment, so your second assessor can see the instructions that were originally provided for you. Do not change any comments made by a Kaplanassessor.
Units of competency
This written assignment is your opportunity to demonstrate your competency against these units:
Unit code Unit name DIPMB2 Complex Lending and Broking
FNSFMB512Identify and develop credit options for clients with special financial circumstances Started and completed
FNSFMB513 Present credit options to clients with special financial circumstances Started and completed
FNSFMB514 Implement complex loan structuresStarted and completed
FNSINC504 Apply ethical frameworks and principles to make and act upon decisions Started and completed
Note that the written assignment is 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 student support staff.
Note: Some commercial lenders will not provide interest rate quotes on some commercial products. Oftencommercial lenders add a risk weighted margin to a base lending rate for certain commercial products. Without conducting an analysis and risk score, they tend to be reluctant to provide quoted interest rates over the phone. Forthe purposes of the case studies, conduct online research to ascertain approximate interest rates, loan terms available, fees and charges that usually align to the types of products that would be required to execute the clients transaction. You are allowed to use estimates.
The case studies can be located in the subject room.
Section 1:Case study 1 Ray Murdoch and Steve Brown Commercial Equipment Finance
Task 1 Identify the clients complex broking needs
Business risk can be defined as anything that may impact the financial health of a business, or that could lead to insolvency.
The risk to a business can eventuate for a variety of reasons and can come from internal or external sources. It is your responsibility (as the broker) to understand the clients business, potential risks, their history, experience and business performance. You will also need to understand specific aspects of the transaction such as your clients intended goals, objectives and requirements in purchasing the equipment.
Task 1: Question 1
Prepare a list of questions that you would ask Ray and Steve in order to gather information in preparation of the loan application.
Your questions for Ray and Steve should uncover:
their understanding of the risks and complex nature of purchasing this equipment (e.g. the risk that the investment may not meet the returns they are expecting)
their understanding of the potential risks and benefits/returns associated with financing the equipment purchase
identification of their tolerance of risk in relation to the purchase, damage to equipment during delivery, installation or operations. How would they mitigate these risks?
if they have any specific product and/or product features they require
if they want flexibility in the product to be able to pay it out early or be able to refinance
if they would consider using their own properties as security to provide different lending options
you need to uncover their understanding of their obligation for insurance and maintenance of the equipment etc.
to understand the financial aspects of the transaction (i.e. total costs, installation, other potential premises modifications required to accommodate the machine etc.)
the current financial position of the business.
to ascertain if they have a taxation strategy in regards to the purchase of the equipment
which other professionals will they will consult with and for what purpose?
to understand and/or mitigate any other potential risks you have identified with their situation. Forexample, their experience, background, succession planning, business ownership issues.
(500 words)
Student response to Task 1: Question 1
Answer here
Task 1: Question 2
Assess the special financial needs of Ray and Steve by developing a matrix of key product features that would address those needs, in the following table:
Student response to Task 1: Question 2
Product name Key product features Client financial needs
Chattel mortgage
Lease agreement
Commercial hire purchase
Task 1: Question 3
Consider the client background information you have been provided and present a brief explanation of the most relevant key product features that appear to meet the financial needs of Ray and Steve. Highlight any risks that these product features may present.
Student response to Task 1: Question 3
Answer here
Assessor feedback for Section 1: Task 1 Identify the clients complex broking needs
[insert feedback]
Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
Task 2 Develop complex broking options
You are required to prepare a full loan proposal addressed to Ray and Steve outlining available loan options and theapplication process. The proposal must also describe the potential advantages and disadvantages of the financing option that is being recommended.
In a suitable report format, you should prepare the proposal to Ray and Steve, covering the following:
1.The parties to the loan what names will be on the loan contract?
2.Provide two (2) different product options that would meet their needs and objectives outline the product name/type, loan term, interest rate, balloon payment (if applicable), fees and charges and monthly repayments.
3. Provide your recommendation of the best product option to meet their needs. State why the other product was not in their best interest or the best option for them.
4.Name three (3) lenders that offer the product you recommended for their transaction. Advise them about the product type, loan terms that are available, interest rate, balloon payment (if applicable), fees and charges and monthly repayments.
5.Provide a summary of the lenders applicable fees and charges including set up costs and ongoing fees and charges.
6.Advise which relevant disclosures need to be made covering broker remuneration.
7.Outline all security that will be required, including directors guarantees.
8.List the documentation they need to provide to obtain the funding for the machine and to obtain a loan approval.
9.Outline their responsibilities, so they fully understand their obligations regarding the security offered and the equipment during the loan term.
10.Provide details of the financial and transaction risks associated with the new loan of which they should be made aware. For example, what would happen if they could no longer service the debt?
11.They enquired about claiming back the GST that is included in the purchase price of the machine. You also feel that they may be able to utilise Small Business Asset Instant asset write-off benefits. In accordance with your qualification as a mortgage broker, what should you advise them to do regarding their question on claiming back GST?
12.Invite them to ask you any questions they may have about the transaction.
13.Provide an instruction for them to advise you to proceed with the application on their behalf.
(800 words)
Notes: Any assumptions you make should be listed, and not be in conflict with the case study information already provided.
You are to write a loan proposal to your clients, demonstrating your professional writing skill not simply commenting on each of the points detailed above.
Your proposal should be supported by evidence-based statements and not contain opinion-based commentary.
The use of tables in the report to set out some of the numeric information may be of benefit.
Use an Upfront commission at 0.66% and trail of 0.165% which includes GST
Student response to Task 2
Answer here
Assessor feedback for Section 1: Task 2 Develop complex broking options
[insert feedback]
Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
Task 3 Implement complex loan structures
Ray and Steve have accepted your recommendations and have given you authority to proceed with their application.
As part of implementing their loan application you are required to prepare a formal written loan submission to the lender for approval.
Note:Lenders have different credit policies and submission requirements which vary from lender to lender.
Your loan submission must include:
1.the details of borrower, guarantors and all contact details
2.the borrower and key personnels background
3.an overview of the proposal what the finance is for how does it benefit the business
4.a funds-to-complete table (cost, deposit etc.) including statutory costs and any relevant fees
5.the proposed structure of the facility being recommended product type, loan amount, term, interest rate, repayments and residual value (if any), pricing (lender fees etc.)
6.cash flow/serviceability calculations using NPAT averaged over two years. Include the current company loan repayments along with the annual interest on the company overdraft calculated at 80% of the limit
7.full details of the security/collateral that is to be provided and whether clients should seek independent legal advice
8.any relevant conditions of approval that the client must meet (if applicable)
9.a description of the relevant risks industry, business, transactional, financial and how they will be mitigated
10.a list of all documents that would be attached to the application
11.any other information that is relevant to assist the lender to provide an approval
12.your comments and recommendations.
(800 words)
Notes: Any assumptions you make should be noted, and not be in conflict with the case study information already provided.
You are to write a formal submission to the lender; not simply commenting on each of the points detailed above.
The use of tables in the report, to set out some of the numeric information, may be of benefit.
Student response to Task 3
Answer here
Credit memorandum
Borrower details:
Name: Answer here
ACN/ABN: Answer here
Directors:
Name/address Answer here
Shareholders:
Name/address/percentage of shareholding Answer here
Principal place of business Answer here
Postcode Answer here
Phone number Answer here Fax number: Answer here
Year established Answer here Industry (if applicable): Answer here
Nature of business activities Answer here Trust
Full name of trust Answer here
Type of trustee Answer here
Company Y / NIndividual Y / N
Name of trustee Answer here
Year established Answer here
Type of trust Answer here
Beneficiaries Answer here
Background
Answer here
Purpose/Loan details/Funding table/Pricing
Answer here
Debt servicing/Sensitivity/Ratios
Answer here
Security details/Exit strategy
Answer here
Conditions precedent
Answer here
Business/Industry/Transaction Risk
Answer here
Attachments to accompany the submission
Answer here
Supporting information and Recommendation
Answer here
Name:
Organisation:
Date:
Assessor feedback for Section 1: Task 3 Implement complex loan structures:
[insert feedback]
Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
Task 4 Verification of applicants financial situation
This task requires you to describe the actions that you would take to verify the applicants details and financial situation.
You will need to identify the key verification tasks associated with the financial situation of both individual applicants and related business activities, based on the information set out in the case study.
Task 4: Question 1
(a) Identify and list each of the individuals and/or business entities for which you would require a creditreport.
(b) Name the company that you would use to access this information and explain what you require from the client, in order to gain consent to obtain this information.
(c)Part (b) requires you to obtain appropriate consent to conduct the credit check. What legislation are you complying with by obtaining consent prior to proceeding?
(d)List the information that is provided in the credit report? (Provide six (6) items)
Student response to Task 4: Question 1
(a)Answer here
(b)Answer here
(c)Answer here
(d)Answer here
Task 4: Question 2
(a)What documents do you need to obtain to identify the individuals that are party to this loan?
(b)Name the Legislation that covers this requirement.
Student response to Task 4: Question 2
(a)Answer here
(b) Answer here
Task 4: Question 3
What sources or supporting documentation would you need to obtain in order to verify the financial information disclosed by the client?
Student response to Task 4: Question 3
Answer here
After reviewing the background information and the business details of the applicant, complete the following questions:
Task 4: Question 4
Provide a summary of the impact that the new loan repayments will have on the companys financial position after debt servicing. Assume a projected increase of 50% in net profit based on the Year 20X1 trading results.
Student response to Task 4: Question 4
Answer here
Task 4: Question 5
Based on the background information provided in the case study and assuming an interest rate of 4.5%p.a., a brokerage fee of 2%, a residual value of 30% and a term of 5 years, calculate:
the borrowed amount
the brokerage feemonthly repayments
total of annual repayments
residual amount
total of repayments over term of the loan including residual payment.
Please identify the calculator you have used and show your calculations.
Student response to Task 4: Question 5
Answer here
Total amount borrowed Monthly repayments Total annual amount of repayments Residual amount Total of repayments over the loan term (include the residual payment) Brokerage fee Task 4: Question 6
(a)Refer to Task 2 and list the two security instruments to be obtained to secure this transaction.
(b)Explain what the impact would be for the directors and the company should the lender call on each of the securities provided.
Student response to Task 4: Question 6
Answer here
(Task 4b questions 1-6, 500 words)
Note: To complete this task you will need to refer to the Toolbox in the sections Pallets-R-Us Pty Ltd and Lending organisations guidelines, policies and procedures, legislative requirements, loan verification and loan standards. You may also need to conduct your own independent research to answer these questions.
Assessor feedback for Section 1: Task 4 Verification of applicants financial situation:
[insert feedback]
Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
Section 2: Case Study 2 Bill Smith and John Jones Commercial Premises Finance
The case study is located in the subject room
Task 1 Identify the clients complex broking needs
It is the brokers responsibility to understand the clients business, potential risks, their history, experience and business performance. You will also need to understand specific aspects of the transaction such as the clients intended goals, objectives and requirements in purchasing the property.
1. Prepare a list of questions that you would ask Bill and John in order to gather information in preparation of the loan application for their commercial property purchase.
Your questions to Bill and John should uncover the following areas:
the reasons behind the complex trust structure they have chosen particularly with the shareholder involvement and their willingness to be involved in the transaction with the lender
the benefits and risks with this property purchase
their risk tolerance with different product types (i.e. fixed rates/interest only, term of loan etc.)
the impact this purchase will have on the business and its financial position
anticipated costs to fit out the new premises to suit their business needs
the business structure/key personnel risks
the business and industry risks (e.g. required licencing and professional indemnity).
(200 words)
Student response to Task 1
Answer here
Assessor feedback for Section 2: Task 1 Identify the clients complex broking needs:
[insert feedback]
Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
Task 2 Prepare complex broking options
You are required to prepare a full report for Bill and John by outlining the application process and the risks (potentialand real) of which they should be aware. This must be presented in a suitable format that would be sent to the client.
You will be required to outline to the directors the product options available to them and the process that will need to take place for them to complete the new property purchase and establish the loan.
In preparation of researching the product options, you will need to understand the clients situation and what funds will be available between the purchase and the sale settlement as outlined in the case study.
The two (2) product options for the property purchase are as follows:
Option 1: A bridging loan with a term loan following bridging period (post sale settlement)
Option 2: A variable rate term loan (to effect the purchase in 90 days time).
In developing your report, you should cover the following:
1.Who are the parties to the loan, given the Trust involvement
2.Provide Bill and John with two (2) complex loan product options
Option 1: Bridging loan with a term loan to follow the bridging period
Option 2: Variable rate term loan.
3.What are your recommendations of the best loan structure option, including:
the loan amountsecurity/collateral including personal and company guarantees
the loan terman explanation as to why the other option is not as suitable for the clients (include pros and cons and differences in fees and interest etc.)
4.Name three (3) lenders that offer the recommended product option required to facilitate this transaction. Advise the client of the product type, loan term, interest rate, ongoing fees and monthly repayment for each of the lenders.
5.What is the procedure to implement the loan, including the documentation Bill and John are required to provide and the security they need to provide?
6.Outline the risks of which Bill and John should be made aware. Information should cover risks associated with the selected loan products and required security, including guarantees and forms of security required in addition to property.
7.Provide the name of the borrower that will be on the loan contract. Also, what name will go on the Certificate of Title (given the Trust involvement) when it is registered with the Land Titles Office? (This varies from state to state so please advise which state you are from refer to the Toolbox for assistance to conduct your research.)
8.Prepare a full funding description including a summary of fees and charges for the purchase of the property and also the setup costs (e.g. solicitors fees) and the lenders fees and charges. If there is a shortfall of funds, how will this shortfall be covered?
9.The clients enquired about claiming back the GST that is included in the purchase price after settlement. In accordance with your qualification as a mortgage broker, what do you advise the clients to do regarding this question?
10.You request that the client informs you of any questions about the transaction and/or provide instructions for you to proceed.
11.Advise which relevant disclosures need to be made to the client regarding the broker remuneration.
(800 words)
Notes: Any assumptions you make should be listed, and not be in conflict with the case study information already provided.
You are to write a report to clients demonstrating your professional writing skills, not simply commenting on each of the points detailed above.
The use of tables in the report to set out some of the numeric information may be of benefit.
Student response to Task 2
Answer here
Assessor feedback for Section 2: Task 2 Prepare complex broking options:
[insert feedback]
Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
Task 3 Implement complex loan structures
Bill and John have accepted your recommendations and have given you authority to proceed with their application.
As part of implementing their loan application you are required to prepare a formal written loan submission to the lender for pre-approval.
Note:Lenders have different templates, therefore, credit policies and submission requirements will vary from lender to lender.
Your loan submission must include:
details of borrower, guarantors and their contact details
what the business does, borrowers backgrounds including directors management ability
an overview of the proposal what the finance is for, the proposed structure and loan recommended, including:
product type
deposit amount (if required)
loan amount
term
interest rate
loan repayments.
a funds-to-complete table, including statutory costs and any relevant fees
debt service cover ratio (DSCR) calculations using information provided in the topic notes and the casestudy
full details of the security being offered
any proposed conditions relating to the loan (e.g. proof of sale of existing premises)
the relevant risks. Include industry, business, transactional, economic and personal and how they can be mitigated
any other information that is relevant to assist the lender provide an approval
a list of the documents that you would attach in your written submission
your comments and recommendations.
(800 words)
Notes: Any assumptions you make should be noted, and should not be in conflict with the case study information already provided.
You are to write a formal submission to the lender, or complete a word document template and copy and paste into the student response box.
Student response to Task 3
Answer here
Credit memorandum
Borrower details
Name: ACN/ABN: Directors:
Name/address Shareholders:
Name/address/percentage of shareholding Principal place of business Postcode Phone number Fax number: Years of operation Industry (if applicable) Nature of business activities Trust
Full Name of Trust Type of Trustee Company Y / N Individual Y / N
Name of Trustee Year established Type of Trust Beneficiaries Background
Answer here
Purpose/loan details/funding table/pricing
Provide a funds-to-complete table, including statutory costs and any relevant fees
Answer here
Security details/Exit strategy
Answer here
Conditions precedent (If no conditions precedent note with N/A)
Answer here
Business/Industry/Transaction Risk
Answer here
Attachments to accompany submission
Answer here
Supporting information & Recommendation
Name:
Organisation:
Date:
Assessor feedback for Section 2: Task 3 Implement complex loan structures:
[insert feedback]
Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
Task 4 Verification of Applicants Financial Situation
Commercial/business lending is less prescriptive than consumer lending, therefore the information provided to the lender may seem quite thorough to the broker, yet once the lender receives the loan application, it is likely they will seek further information and clarification.
Task 4: Question 1
(a) Identify a minimum of four (4) areas where the lender may require additional information.
(b) What financial services professionals could you engage if you were not able to answer all of the lenders enquiries?
(c) If you needed to escalate any risks or concerns, who would you engage within your own organisation to assist?
Student response to Task 4: Question 1
(a)Answer here
(b)Answer here
(c)Answer here
Task 4: Question 2
In task 2 you obtained the clients agreement to proceed with the loan application. In accordance with regulation, legislation and codes of practice, where should this information be recorded?
Hint/Tip:
In addition to the topic notes, you may find some information in the Toolbox
Student response to Task 4: Question 2
Answer here
Task 4: Question 3
When identifying commercial borrowers and directors, legislative requirements concerning AML/CTF verifications must be met. What checks would you complete to meet these requirements and what would be two (2) possible impacts if you did not complete these checks.
Student response to Task 4: Question 3
Answer here
Task 4: Question 4
In Task 1 you identified potential risks for Case study 2, Bill Smith and John Jones.
Choose three (3) risks that you identified and develop recommendations on risk management strategies that would help to mitigate these risks.
Student response to Task 4: Question 4
Answer here
Task 4: Question 5
Following your review of the borrowers financial position, compare their current and future outgoing commitments once the new loan is initially in place.
(a) What are the two (2) key impacts/changes to their cashflow?
(b) What is the change in the amount of their outgoing commitments? Demonstrate how you arrived at this figure.
Please note: you are not expected to discuss any GST or taxation implications.
Student response to Task 4: Question 5
(a)Answer here
(b)Answer here
Task 4: Question 6
(a)Refer to Task 3 and list at least two (2) of the security instruments to be used for this transaction.
(b)What would the impacts be for the individuals and/or companies if the lender was to call upon thesecurities?
Student response to Task 4: Question 6
Answer here
Task 4: Question 7
Provide two (2) examples of any legal, financial or other issues that the client should be aware of when applying for credit in the name of a trust for example, additional documentation that may be required, taxation issues or fees.
Hint/Tip:
Refer to the Toolbox for a helpful link about trusts.
Student response to Task 4: Question 7
Answer here
(Task 4 questions 1-7: 500 words)
Notes: To complete this task you will need to refer to the Toolbox and sections True Blue Pty Ltd trading as True Blue Real Estate and Lending organisations guidelines, policies and procedures, Legislative requirements, Loan verification and audit standards document found in the Toolbox. You may also need to conduct your own independent research to answer these questions.
Assessor feedback for Section 2: Task 4 Detailing analysis findings:
[insert feedback]
Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
Section 3: Case Study 3 Rahn and Deepa Singh Property Development Finance
The case study can be located in the Subject room
Task 1 Identify the clients complex broking needs
Task 1: Question 1
It is the brokers responsibility to understand the clients business, potential risks, their history, experience and business performance. You will also need to understand specific aspects of the transaction such as their intended goals, objectives and requirements in purchasing the property.
Prepare a list of questions that you would ask Rahn and Deepa in order to gather information in preparation of the loan application for their investment property development.
Your questions should uncover the following areas:
their future goals, employment history, experience in project management, financial position, attitude to risks and the property purchase
the complex features of the proposed construction financing transaction and options for 100% funding
the identification of potential risks involved with construction loans and Rahn and Deepa s tolerance for risk
the financial aspects of the transaction including, progressive payments and cost over-runs
the financial position of the borrowers and their capacity to meet project costs
experience in managing a construction project and whether they intend to use other building specialists or project managers
the customers intention to undertake another project after completion
the customers plans for management of the rental and sale of one unit
if the project exceeds the projected amounts, how would they manage the extra costs.
(800 words)
Student response to Task 1: Question 1
Answer here
Assessor feedback for Section 3: Task 1 Identify the clients complex broking needs:
[insert feedback]
Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
Task 2 Prepare complex broking options
You are required to prepare a proposal for Rahn and Deepa outlining the loan approval process and the transaction risks they should be aware of.
Prepare the proposal document, in a suitable format, and explain the consumer loan options available to Rahn and Deepa. Outline the process that will need to take place for them to complete the purchase of the property and construction of the three units.
In developing your report, you should cover the following:
1.Who the parties to the loans are.
2.Provide Rahn and Deepa with two initial loan products that would meet their requirements.
Option 1: Residential home loan secured by the family home to provide the required equity
Option 2: Property development loan to assist with purchase of land and construction.
3.Your recommendation for the best loan structure option for each loan, including:
amounts
security/collateral for each loan
terms
repayment types
LVRs for each loan
explanation why each of the loans are suitable for the clients.
4.Provide Rahn and Deepa with a preliminary assessment, as required under your regulatory responsible lending obligations, outlining the three (3) lenders that provide the product required to facilitate this transaction, and advise the client of the product type, loan term, interest rate, ongoing fees and monthly repayment for each of the products.
5.Describe the procedure, from initial interview to unconditional loan approval, including documentation required from Rahn and Deepa . Ensure you mention the compliance documents you need to complete.
6.Describe the client responsibilities, so Rahn and Deepa understand the facilities being proposed.
7.Outline the risks (potential and real) of which Rahn and Deepa should be made aware of, including using their own home as security.
8.Prepare a full funding description including a summary of fees and charges for the initial purchase of the land through to completion of project. Ensure you include the costs for setup and those of the lender.
9.Prepare a time line for the project detailing payments and where funds will be obtained from.
10.A request for the client to inform you of any questions about the transaction and/or provide an instruction for you to proceed.
11.Advise which relevant disclosures need to be made regarding broker remuneration.
(800 words)
Notes: Any assumptions you make should be listed, and not be in conflict with the case study information already provided.
You are to write a report to clients demonstrating your professional writing skill, not simply commenting on each of the points detailed above.
The use of tables in the report, to set out some of the numeric information, may be of benefit.
Student response to Task 2
Answer here
Customer(s) full name(s) Address Phone and e-mail 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 $
Assessor feedback for Section 3: Task 2 Prepare complex broking options
[insert feedback]
Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
Task 3 Implement complex loan structures
Rahn and Deepa have accepted your recommendations and have given you authority to proceed with their application.
As part of implementing their loan application you are required to prepare a formal written loan submission to the lender for pre-approval.
Note:Lender templates, credit policies and submission requirements vary from lender to lender. For this task, you can use the template called Credit Memorandum (or follow the structure as a guide) and/or any of the other example tables provided in the Toolbox.
Your loan submission must include:
details of borrower and their contact details
borrowers backgrounds including ability to manage project or possible use of building expert
an overview of the proposal what the finance is for the proposed structure and loan recommended. Include:
product types
deposit amount (if required)
loan amounts
terms
interest rates
interest repayments
full details of the security being offered
a funds-to-complete table, include statutory costs and any relevant fees
the loan for the two remaining units (loan amount will be 80% of the completion value)
outline the debt servicing position
the projected rental income
interest only repayments
the security and LVR position
a highlight the relevant risks. Include transactional, economic and personal risks and how they can bemitigated
any other information that is relevant to assist the lender provide an approval
your comments and recommendations
a list of the documents that you would attach in your written submission. (You can assume that youhave all of the necessary approvals for the construction and have obtained a valuation).
(800 words)
Notes: Any assumptions you make should be listed, and not be in conflict with the case study information already provided.
You are to write a formal submission to the lender, or complete a word document template and copy and paste into the student response box.
Student response to Task 3
Answer here
Assessor feedback for Section 3: Task 3 Implement complex loan structures:
[insert feedback]
Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
Task 4 Verification of applicants financial situation
When a consumer loan falls under the protection of the National Consumer Credit Protection Act 2009 (NCCP Act), there are disclosure obligations that the broker must abide by.
Assume the following:
Rahn and Deepas loan falls under the NCCP Act.
You are about to provide the client with credit assistance.
You are going to charge them a fee for your service.
Task 4: Question 1
What are the two (2) disclosure documents that you must provide to the client at the initial meeting?
(4 words)
Hint/Tip:
Refer to the Toolbox for a helpful link under the heading Responsible lending obligations
Student response to Task 4: Question 1
Answer here
Task 4: Question 2
In order for you to collect and store client information and conduct a credit check, what document would you need to get signed by the client?
(10 words)
Student response to Task 4: Question 2
Answer here
Task 4: Question 3
Your client has advised you that they are not sure what the term cross-collateralisation means. Explain what cross-collateralisation means to the client.
(50 words)
Hint/Tip:
Refer to the topic notes
Student response to Task 4: Question 3
Answer here
Task 4: Question 4
Given that Rahn and Deepa want to equally own the new property, claim taxation benefits and maintain ownership if one party passes away, how should they register their ownership interest on the Certificate of Title?
(10 words)
Hint/Tip:
Refer to the Toolbox for a helpful link
Student response to Task 4: Question 4
Answer here
Task 4: Question 5
In Task 1 you identified risks that concern Rahn and Deepas property development proposal. From the list of risks you identified, choose two (2) risks and discuss the following, namely:
(a)why you feel it is a risk to the client and/or the lender
(b)if the risk was to eventuate, what could be the potential consequences for the clients and/or the lender
(c) your suggestions for how these risks can be mitigated.
(20 words)
Student response to Task 4: Question 5
(a)Answer here
(b)Answer here
(c)Answer here
Note: You may also need to conduct your own independent research to answer these questions.
Assessor feedback for Section 3: Task 4 Detailing Analysis Findings:
[insert feedback]
Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
Section 4: Complex Lending and Broking Identifying, developing, presenting and implementing complex broking options
Task 1 Complex collateral (specialised security)
Task 1: Question 1
(a) Explain what the risks are for a lender with taking rural land as security. Provide one (1) example.
(b) Explain what the risks are for the client with purchasing rural land. Provide one (1) example.
(50 words)
Student response to Task 1: Question 1
(a)Answer here
(b)Answer here
Task 1: Question 2
(a) Some properties are heritage listed. Explain what this means.
(b) Explain one (1) risk for the purchaser with buying a heritage listed property.
(c) Explain one (1) risk for the lender with taking a heritage listed property as security.
(100 words)
Student response to Task 1: Question 2
(a)Answer here
(b)Answer here
(c)Answer here
Task 1: Question 3
Describe the purpose of an Environmental Site Assessment (ESA) and explain the main steps involved in producing an ESA.
(80 words)
Student response to Task 1: Question 3
Answer here
Task 1: Question 4
(a) Explain how an Indigenous Land Use Agreement (ILUA) might assist with the acquisition of land subject to native title.
(b) What is one (1) limitation of an Indigenous Land Use Agreement?
(50 words)
Student response to Task 1: Question 4
(a)Answer here
(b)Answer here
Task 1: Question 5
When borrowing against specialised security, there are often impacts such as additional loan approval processes that are required. Describe two (2) additional processes that may impact a loan application when borrowing against specialised security.
(100 words)
Student response to Task 1: Question 5
Answer here
Assessor feedback for Section 4: Task 1 Complex collateral (specialised security):
[insert feedback]
Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
Task 2 Complex loan structures
Task 2: Question 1
(a) List three (3) types of loan transactions that may be considered to be complex loans.
(b)Provide two (2) examples of how a clients application with special financial circumstances (such as offering a specialised property as security or requiring a complex loan structure) might be impacted.
For example, additional requirements made by the lender.
(50 words)
Student response to Task 2: Question 1
(a)Answer here
(b)Answer here
Task 2: Question 2
Explain how lending limits may be impacted for loans secured by rural property.
(100 words)
Hint/Tip:
Refer to your topic notes to answer this question
Student response to Task 2: Question 2
Answer here
Task 2: Question 3
(a)Provide one (1) example of when a client may require a bridging loan.
(b)List and explain two (2) risks for the client when obtaining a bridging loan.
(75 words)
Hint/Tip:
In addition to the topic notes, you may be required to undertake your own research. There is a link provided in the Toolbox.
Student response to Task 2: Question 3
(a)Answer here
(b)Answer here
Task 2: Question 4
(a)Provide one (1) example of when a client may require an equity release product (e.g. reverse mortgage).
(b)What three (3) factors are taken into consideration when determining how much the client can access with this type of lending?
(75 words)
Hint/Tip:
In addition to the topic notes, you may be required to undertake your own research. There is a link provided in the Toolbox.
Student response to Task 2: Question 4
(a)Answer here
(b) Answer here
Task 2: Question 5
List the supporting documentation you would request from a business client that you would need to forward to the lender along with loan application. (List a minimum of four (4))
(20 words)
Student response to Task 2: Question 5
Answer here
Task 2: Question 6
(a)As a broker you can assist the client and the lender with the loan implementation process. List a minimum of seven (7) steps that you (as the broker) can take to assist with the loan submission, from collection of supporting documentation through to the collection of fees and settlement or loan draw down.
(b)What steps can you take to ensure the privacy of your clients information when sending and storing their supporting documents and loan application details?
(100 words)
Hint/Tip:
Refer to your topic notes for the suggested Implementation steps
Student response to Task 2: Question 6
(a)Answer here
(b) Answer here
Task 2: Question 7
The implementation process can take time, organisation and require follow up. This part of the process is vital for cementing the relationship with both the client and lender.
What time management tools and techniques can you use to support the implementation process to ensure it runs smoothly and is completed on time for your client and the lender? (Provide at least two (2))
(20 words)
Hint/Tip:
Refer to the Toolbox for a helpful link.
Student response to Task 2: Question 7
Answer here
Assessor feedback for Section 4: Task 2 Complex loan structures:
[insert feedback]
Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
Task 3 Legislation and codes of practice
Task 3: Question 1
(a)Identify the Legislation that amends the National Credit Code, which provides negative equity protection for reverse mortgage borrowers.
(b)Explain what protection is provided to those consumers.
Student response to Task 3: Question 1
(a)Answer here
(b) Answer here
Task 3: Question 2
Briefly describe what a finance and mortgage brokers obligations are under best interests duty.
Hint/Tip:
Refer to the Toolbox
(40 words)
Student response to Task 3: Question 2
Answer here
Task 3: Question 3
Write an email to a client outlining the complaints resolution process in accordance with the Australian Financial Complaints Authority (AFCA). (Ensure that you outline what AFCA encourages clients to do before making a complaint to them.)
(100 words)
Hint/Tip:
Refer to the Toolbox for a link to AFCA.
The purpose of this task is to communicate the complaints resolution process to the client. Therefore, it is important that your response is in an email format.
Student response to Task 3: Question 3
Answer here
Assessor feedback for Section 4: Task 3 Legislation and codes of practice:
[insert feedback]
Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
Section 5: Ethical decision-making frameworks and principles
Before you begin this Topic, you will be required to read the case study which is located in the subject room.
Task 1 Frame the ethical question applicable to the situation
Task 1: Question 1
Investigate whether the assumptions and client advice provided by the broker in Scenario A, align with industry practice.
(50 words)
Student response to Task 1: Question 1
Answer here
Task 1: Question 2
Identify the two (2) ethical principles that arise in each of the three (3) scenarios from the case study and list them in the table below.
Student response to Task 1: Question 2
Answer here
Issue Identified
Example: The broker submitted false information.
Scenario A
Scenario B
Scenario C
Task 1: Question 3
The lender in Scenario A became aware of the brokers instructions to the clients and advised the broker that his actions were not acceptable.
In their defence, the broker stated that they had, heard that this was the right thing to do at a professional development day that I attended in the past and that I confirmed this by asking other brokers who agreed with my actions.
Identify at least two biases that are revealed in the statements made by the broker and explain how they might impact the brokers understanding of the situation.
(50 words)
Student response to Task 1: Question 3
Answer here
Task 1: Question 4
Explain what regulatory requirements may be breached if the situation in Scenario B was not addressed?
(20 words)
Student response to Task 1: Question 4
Answer here
Task 1: Question 5
Many organisations have a vision and/or mission statement and a set of values that are visible on their website to the public and their clients.
The ethical situation that arises in Scenario B has the potential to be in conflict a lenders purpose andvalues.
Identify two (2) examples where the situation in Scenario B could be in conflict with an organisations strategy, purpose and/or values.
Hint/Tip:
For this task you may use Westpacs Strategy and Purpose. A link has been provided and can be located in the Toolbox.
(20 words)
Student response to Task 1: Question 5
Answer here
Task 1: Question 6
Scenario B resulted in the clients lodging a complaint with the Australian Financial Complaints Authority, (AFCA), against both the lender and the broker.
Evaluate the possible impact on the lenders reputation if the action of cancelling the loan became known in the public domain. Explain how the organisation at fault could be impacted.
(50 words)
Student response to Task 1: Question 6
Answer here
Assessor feedback for Section 5: Task 1 Frame the ethical question applicable to the situation:
[insert feedback]
Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
Task 2 Determine ethical response to the situation
Task 2: Question 1
Scenario A resulted in the clients defaulting on their home loan 12 months after settlement as it took them several months to find new employment. Each party to the transaction claimed that they received poor advice from the broker.
Identify the key stakeholders (parties) and analyse what is at stake for each of them.
(100 words)
Student response to Task 2: Question 1
Answer here
Task 2: Question 2
You have been asked to determine an ethical response to Scenario B. You are required to analyse the situation using the RADAR ethical decision-making framework. Your response must include commentary on each aspect of this framework as follows:-
Recognising the eventAssessing the situationDeciding what to doAgreeing the way forwardReporting
(150 words)
Hint/Tip:
The framework can be located in your Topic notes and a helpful link is also provided in the Toolbox.
Student response to Task 2: Question 2
Answer here
Task 2: Question 3
The broker in Scenario A was interviewed about his actions and made the following comments:
Most of my business is settled with this particular lender and the loans manager is a personal friend of mine. There is nothing unusual about the way I handled this situation. Im not that comfortable dealing with clients this way, but its the way brokers operate. I know this is true because my mentor didnt see anything wrong by not notifying the lender.
Identify the situational and/or psychological barriers that may have impeded the brokers response to this ethical situation by listing a minimum of two (2) examples of conflict of interest and at least two (2) examples of where the brokers views were biased.
(50 words)
Student response to Task 2: Question 3
Answer here
Conflicts of Interest:
Biased views:
Task 2: Question 4
You have been asked to determine an ethical response to Scenario A having now heard what the broker has had to say about his actions at question 2.3 above. Name at least two (2) people or organisations you might seek guidance from as you would consider them to be ethical advisers.
(10 words)
Student response to Task 2: Question 4
Answer here
Trusted ethical advisers:
Task 2: Question 5
Describe the strategies and processes you would formulate for responding to the situational and psychological barriers you identified in Question 2.3 above.
(80 words)
Student response to Task 2: Question 5
Answer here
Situational Barriers Strategies Processes
Psychological Barriers
Assessor feedback for Section 5: Task 2 Determine ethical response to the situation:
[insert feedback]
Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
Task 3 Develop implementation plan and carry out ethical response to the situation
As the compliance manager for the lender, you have been asked to implement an ethical response to Scenario B in order to set out what conduct is expected across the broker network.
Important:
Although you will need to consider the ethical situation described in Scenario B, the focus of your response to the following questions needs to be on developing a plan to implement changes within the lender organisation and the broker network. You are required to develop an implementation plan, as follows:
Task 3: Question 1
Identify:
(a)what data needs to be gathered.
(b)which parties you will need to communicate with
(c)the sequence of the steps that you will take to complete these tasks.
(75 words)
Student response to Task 3: Question 1
Answer here
Task 3: Question 2
Identify a minimum of three (3) examples of reasoning or rationalisation that may be encountered by someone speaking up on ethical issues and suggest how you would respond to those behaviours.
(25 words)
Student response to Task 3: Question 2
Answer here
Reasoning/Rationalisation Appropriate Response
Task 3: Question 3
As stakeholders may be impacted by an ethical response, it is important to manage stakeholder risks and concerns that might arise during this process.
(a) Identify the four (4) steps in the stakeholder risk management process and outline the key objectives of each step in the table below.
(b)Describe the communication strategies that you would use to ensure that the risks are mitigaged and that your stakeholders concerns are acknowledged.
(50 words)
Hint/Tip:
Refer to your Topic notes.
Student response to Task 3: Question 3
(a)Answer here
Process: Stakeholder Risks Management Steps Key objectives:
(b)Answer here
Task 3: Question 4
(a)Under what circumstances would you seek support from a trusted colleague in order to effectively carry out the ethical response? Provide three (3) examples in the table below.
(b)Under what circumstances would you act independently in order to effectively carry out the ethical response? Provide a minimum of three (3) in the table below.
(20 words)
Student response to Task 3: Question 4
Seek Support from a Trusted Colleague:
(a)
Act Independently:
(b)
Assessor feedback for Section 5: Task 3 Develop implementation plan and carry out ethical response to the situation:
[insert feedback]
Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
Task 4 Evaluate the outcomes of the ethical response
Case Study:
One of Petas most important customers called yesterday seeking an explanation for the delay in receiving a valuation report for a loan application he had lodged last week. Peta had asked a colleague Alex to order a valuation (normally completed within five days), but it had not arrived.
When Peta asked Alex whether the valuation instructions had been issued, Alex said, I sent them by email to the valuer a week ago. Later, as Peta passed Alexs desk and woke the laptop from the screensaver, Peta could clearly see that the email was sent just two days ago. This was typical of the poor customer service provided by the organisation due to ongoing problems with staff levels and it is not the first time Alex had been dishonest in order to cover up mistakes.
However, Peta knew that Alexs job was at risk and decided the right thing to do was to protect her colleague by calling the client back with the news that the valuer had received the instructions but had not yet completed the valuation report. As Peta talked with the client, she learned that the delay of the valuation had resulted in the loss of the clients opportunity to purchase the property.
Peta later heard from the manager that the client had complained and decided to not use the mortgage broking services provided by the organisation in future. Peta listened carefully when her manager later expressed his confusion on how this clients attitude towards him had been hostile. Peta, knowing that both Alex and her own jobs were now at risk, said nothing in response.
Task 4: Question 1
(a)Identify a minimum of three (3) ethical situations/actions described in the case study.
(b)Evaluate whether the issues were resolved and if other courses of action should have been taken.
(50 words)
Student response to Task 4: Question 1
Answer here
Task 4: Question 2
Determine the consequences for Peta and the other affected parties from the actions she took.
(30 words)
Student response to Task 4: Question 2
Answer here
Task 4: Question 3
Analyse what the outcomes of Petas actions reveal about her own and the organisations values.
(25 words)
Student response to Task 4: Question 3
Answer here
Task 4: Question 4
Identify improved approaches for responding to future ethical situations that might arise from the circumstances described in the case study.
(25 words)
Student response to Task 4: Question 4
Answer here
Assessor feedback for Section 5: Task 4 Evaluate the outcomes of the ethical response:
[insert feedback]
Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
Written Assignment
Business Management Skills
(DFMB3_AS_v1)
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Please complete the fields shaded grey.
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Result resubmission (if applicable) Not applicable
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Task 7 Not yet demonstrated
Not applicable
Feedback (assessor to complete)
[insert assessor feedback]
Before you begin
Read everything in this document before you start your written assignment for Business Management Skills (DFMB3_AS_v1).
About this document
This document includes the following parts:
Instructions for completing and submitting this assignment
Task 1 Developing and nurturing relationships with clients, other professionals and third-party referrers
Task 2 Developing business promotion plans
Task 3 Identifying risk and applying risk management processes
Task 4 Improving the business
Task 5 Managing team effectiveness and performance
Task 6 Performance management
Task 7 Develop a performance plan
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 assignment within your enrolment period. Your study plan is in the KapLearn Business Management Skills (DFMB3v1) 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_Assignment_versionnumber_Submissionnumber (e.g. 12345678_DFMB3_AS_v1_Submission1).
Include your student ID on the first page of the 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 this assignment, assumptions are permitted although they must not be in conflict with the information provided in the Case Study.
You may also be required to source additional information from other organisations in the finance industry to find the right products or services to meet your clients requirements, or to calculate any service fees that may be applicable.
Submitting the written assignment
Only Microsoft Office compatible written assignments submitted in the template file will be accepted for marking by Kaplan Professional Education. You need to saveand submit this entire document.
Do not remove any sections of the document.
Do not save your completed assignment as a PDF.
The written assignment must be completed before submitting it to Kaplan Professional Education. Incomplete written assignments will be returned to you unmarked.
The maximum file size is 20MB for the Written and Oral Assignment. 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 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.
Your written assignment and oral assignment must be submitted together on or before your due date. Please check KapLearn for the due date.
The written assignment marking process
You have 12 weeks from the date of your enrolment in this subject to submit your completedassignment.
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 written and oral assignment and return it to you in the Business Management Skills (DFMB3v1) subject room inKapLearn under the Assessment tab.
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 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
Assignment tasks 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 units of competency in this subject, including:
all of the exam questions
the written and oral assignment.
Not yet demonstrated and resubmissions
Should sections of your 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 assessors 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 your resubmission. Your assessor will be in a better position to gauge the quality and nature of your changes. Ensure you leave your first assessors comments in your assignment, so your second assessor can see the instructions that were originally provided for you. Do not change any comments made by a Kaplanassessor.
Units of competency
This written assignment is your opportunity to demonstrate your competency against these units:
Unit code Unit name
FNSRSK511 Undertake risk identification
FNSPRM613 Grow financial businesses
BSBLDR522 Manage people performance
BSBTWK502 Manage team effectiveness
FNSPRM612 Improve business of financial practices
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 student support staff.
Start here
Throughout this assessment we will be using a case study to explore the five (5) units of competency. Youwill need to read the case study first and refer to it throughout the subject.
The case study: Capital City Finance and Mortgage Brokers (CCF & MB), can be accessed from the subjectroom.
Business management skills
Background
Refer to the Case study business profile for Capital City Finance and Mortgage Brokers (CCF & MB) locatedin the subject room.
George and Mildred are very happy with the way you provide service to your clients and your contribution to building the business. They now want you to take the next step into a more senior role of general manager and turn your focus to expanding the business, by building relationships through strategic alliances with selected real estate agents, accountants and legal firms. They also want you to consider how CCF & MB can consolidate its relationships with its existing strategic partners.
Task 1 Developing and nurturing relationships with clients, otherprofessionals and third-party referrers
George and Mildred require you to write two (2) growth plans.
The first growth plan will outline how you will strengthen the strategic relationships you already have with a number of real estate agents, accountant and legal firms.
The second growth plan will outline how you will identify and foster new relationships with other real estate agents, accountants and legal firms
The layout and content of each plan should address the following:
Identify the business objectives and needs.
Capital City Finance and Mortgage Brokers (CCF & MB) does not have a vision statement. You will need to create one. (In the first growth plan you will outline how you developed, reviewed and finalised the vision statement).
Outline the policies and procedures that are essential for the growth plan to be functional, effective and meet legislative requirements.
Conduct sufficient market research to identify key relationship opportunities and what will be required to maintain and attract relationships.
Outline how you could use and cooperate with other professionals and third parties to expand and enhance the reputation of the organisation.
Segment the relationships and tailor the plan for each.
Clearly identify the priorities for each relationship based on the overall vision and objectives of the business.
Set appropriate growth targets.
Develop an action plan to achieve the growth targets.
Review existing business work activities and confirm they support the business growth plans.
Outline who will need to be consulted during implementation of your plan.
Outline how you will monitor and adjust the plan.
You can use a suitable template that you are familiar with or have found on the internet or you can utilise the template provided below.
When completing this task, assumptions are permitted, although they must not be in conflict with the information provided in the background information.
(1,000 words)
Student response to Task 1
Growth Plan 1
Background
Answer here
Vision statement
Answer here
Objective/s of the organisation
Answer here
Objective/s of the growth plan. What will be the success indicators?
Answer here
Essential policies and procedures
Answer here
Market research
Answer here
Relationships (maintain, strengthen, grow) and appropriate growth targets. Prioritise the relationships.
Answer here
Action Plan (repeat as required)
Due Date Task Task Owner Resources required
Answer here Answer here Answer here Answer here
Funding required
Answer here
Work practices review (What supports the plan and what might need to change)
Answer here
Who will need to be consulted during implementation?
Answer here
How will you monitor the implementation and adjust as required?
Answer here
Growth Plan 2
Background
Answer here
Vision (how you developed, reviewed and finalised the vision)
Answer here
Objective/s of the organisation
Answer here
Objective/s of the growth plan. What will be the success indicators?
Answer here
Essential policies and procedures
Answer here
Market research
Answer here
Relationships (maintain, strengthen, grow) and appropriate growth targets. Prioritise the relationships.
Answer here
Action plan (repeat as required)
Due date Task Task owner Resources required
Answer here Answer here Answer here Answer here
Funding required
Answer here
Work practices review (What supports the plan and what might need to change)
Answer here
Who will need to be consulted during implementation?
Answer here
Assessor feedback: Task 1 Developing and nurturing relationships with clients, other professionals and third-party referrers
[insert feedback]
Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
Task 2 Developing business promotion plans
George and Mildred now require you to write two (2) promotional plans. The promotional plans can be on any aspect of the business (new clients, new products, new services etc.).
Task 2: Question 1
The layout and content of each plan should address the following:
Research and identify target markets.
Obtain market research data (or make assumptions) and identify key market data for the plan. Thiscaninclude, for example, customer demographics, product types (i.e. census data if available), marketing media data (i.e. social media).
Conduct a competitor analysis. Identify your major competitors (at least two (2)), with a competitor analysis developed for each competitor.
Develop and review the business market position based on the research and competitor analysis.
Develop the business brand and the benefits your business can offer.
Identify the business products and/or services using a combination of research and your own personal experience
Establish the objectives and targets of the promotion.
Develop and select the appropriate promotional tools.
(1,000 words)
You may use any format for your plan; however, you are not permitted to simply answer the points above. If you are unsure as to how to write a plan, you can refer to the Business Growth and Marketing topic and use the suggested SMEAC format outlined in Part 6, Section 13. You may also refer to the internet for other examples of business or marketing plans.
A link providing guidance on how to develop a plan is available in the Toolbox.
You can also use the template below for your plan.
When completing this task, assumptions are permitted, although they must not be in conflict with the information provided in the case study.
Student response to Task 2: Question 1
Promotional Plan 1
Industry research (What industry are we in?)
Answer here
Market research (identify target markets, products and services)
Answer here
Competitor analysis (minimum of two (2) competitors)
Answer here
Business current position
Answer here
Products and/or services to promote
Answer here
Objectives and targets of the promotion
Answer here
Promotional tools and strategy
Answer here
Promotional Plan 2 (must be different to Plan 1)
Industry research (What industry are we in?)
Answer here
Market research (locate target markets, products and services)
Answer here
Competitor analysis
Answer here
Business current position
Answer here
Products and/or services to promote
Answer here
Objectives and targets of the promotion
Answer here
Promotional tools and strategy
Answer here
Task 2: Question 2
In the tables below, outline the tasks, steps, resources, personnel and timelines required to develop and implement the promotional plan.
(100 words)
Student response to Task 2: Question 2
Implementing the promotional plan 1
Task Steps required Resources required Who will complete this? Date to start Date to complete
Answer here Answer here Answer here Answer here Answer here Answer here
Implementing the promotional plan 2
Task Steps required Resources required Who will complete this? Date to start Date to complete
Answer here Answer here Answer here Answer here Answer here Answer here
Task 2: Question 3
You are required to monitor the progress of the promotional plans. Complete the tables below to demonstrate how you will monitor your promotional plan over a period of time.
Depending on the type of activity and how it is measured, an average may not be applicable. Ifnotapplicable, input N/A in the Average column.
(100 words)
Student response to Task 2: Question 3
Monitoring the promotional plan 1
Marketing plan targets Monitoring process Period one Period two Period three Period four Average
Answer here Answer here Answer here Answer here Answer here Answer here Answer here
Monitoring the promotional plan 2
Marketing plan targets Monitoring process Period one Period two Period three Period four Average
Answer here Answer here Answer here Answer here Answer here Answer here Answer here
Task 2: Question 4
You will need to assume that certain aspects of your promotional plan require an adjustment.
For example, consistency of posts to social media not being maintained.
To make adjustments to the promotional plan, complete the tables below.
(200 words)
When completing this task, assumptions are permitted although they must not be in conflict with the information provided in the background information.
Note to students: You can add lines to the tables if necessary
Student response to Task 2: Question 4
Adjusting the promotional plan 1
Identified task requiring adjustment Changes required
Answer here Answer here
Adjusting the promotional plan 2
Identified task requiring adjustment Changes required
Answer here Answer here
Assessor feedback: Task 2 Developing business promotion plans
[insert feedback]
Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
Task 3 Identifying risk and applying risk management processes
George and Mildred have become very concerned about the potential risks that could jeopardise CCF&MBs business operations. They were very impressed with your growth and promotional plans for CCF & MB so they have now moved you into more of a general managers role with expanded responsibilities, including managing CCF & MBs risk.
Task 3: Question 1
As part of your new responsibilities, you are required to develop a risk management plan which:
establishes the context for CCF & MBs risk management plan and establish the boundaries of that context
outlines the regulatory requirements (in particular who are the regulators)
lists and explains the tools you will use in assessing the risks you identify
identifies the stakeholders (both internal and external) you would consult in establishing context and assist with the identification of CCF & MBs risks
outlines the tools you would use in identifying CCF & MBs risks
identifies at least two risks and the organisational processes associated with that risk that CCF & MB could face for each of the six categories of business risk; including strategic risks, compliance risks, financial risk, operational risks, market and environmental risks and reputational risks; with an appropriate risk statement for each identified risk.
Note: You may make any assumptions in producing your plan, but these should be documented either in the body of your plan or separately before you produce it. You are not permitted to simply answer the points detailed above.
(400 words)
Student response to Task 3: Question 1
Answer here
Task 3: Question 2
Refer to the email from co-worker identifying potential risk in the Toolbox. In the answer box below, writean email to management outlining the identified risk, your analysis, how you would evaluate the risk and suggest how the risk could be best treated.
(200 words)
Student response to Task 3: Question 2
Answer here
Task 3: Question 3
Refer to the risk treatment mapping guide in the toolbox. Using the following steps, complete the risk evaluation and treatment table below:
Step 1. Insert the risks that you identified in Question 1 into the table below.
Step 2. By using the risk treatment mapping guide in the toolbox, appraise the likelihood and consequence for each risk identified and include these in the table.
Step 3. Define how each risk can be treated, and whether a potentially serious risk should be escalated to management.
Step 4.Develop recommendations to mitigate identified risks.
Step 5.Provide recommendations on how to monitor and review the risks identified.
(200 words)
Student response to Task 3: Question 3
Answer here
Risk evaluation and treatment map
Risk identified
(through analysis) Likelihood
(risk evaluation criteria) Consequence Treatment
(comment if risk should be escalated to management for supervision) Mitigate identified risks
(provide recommendations to mitigate risk) Monitor
(include how to be monitored and how often to be reviewed)
Answer here Answer here Answer here Answer here Answer here Answer here
Task 3: Question 4
Take two (2) of the risks you identified in Question 1 and treated in Question 3. Create a scenario for both where the risk has escalated in likelihood and/or consequence due to the control strategy you applied not working effectively or the situation has changed.
Outline your recommendations for new controls.
Complete the table below.
(200 words)
Student response to Task 3: Question 4
Answer here
Risk Current Escalation factor New Recommended controls Who needs to be informed
L C L C Answer here Answer here Answer here Answer here Answer here Answer here Answer here Answer here
Assessor feedback: Task 3 Identifying risk and applying risk management processes
[insert feedback]
Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
Task 4 Improving the business
Over the last few months business for CCF & MB has been very good with a number of new clients coming on board as a result of implementing your business growth and marketing plans. However, neither you or the business owners are satisfied with maintaining the status quo; as you and they are committed to a program of continuous improvement.
You all feel that CCF & MBs competitive advantage needs to be strengthened and a SWOT should be undertaken to establish CCF & MBs strengths and weaknesses including benchmarking the business against the industry. You now decide that you will carry out a diagnosis of the business including a SWOT analysis and a benchmarking exercise to improve CCF &MBs competitive advantage and its business. You are to produce a document covering your diagnosis, which will be distributed amongst CCF & MBs key personnel.
As a minimum, your document should cover the following:
Identify the business priorities, objectives, needs and requirements.
The data and tools you have used as part of your diagnosis to identify CCF & MBs competitive advantage.
A SWOT analysis to identify CCF & MBs strengths and weaknesses, its threats and opportunities.
How you identified and sourced relevant benchmarking data.
How you selected the key indicators (and who you consulted with) for your benchmarking exercise.
A consolidated list of the areas for improvement (this must include at least three (3) different financial businesses) you have identified with a cost-benefit ratio established for each of them.
Outline the stakeholders you consulted with to reach agreement on the areas of improvement and the success factors.
Recommendations on the changes that may be required that will affect existing workflows or CCF & MBs organisational structure.
A high-level action plan that will implement and monitor the recommended changes to be made.
In addition to the learning material in Topic 1-2, Part 2, refer to the helpful links provided in the Toolbox.
(1,000 words)
Student response to Task 4
Answer here
Assessor feedback: Task 4 Improving the business
[insert feedback]
Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
Task 5 Managing team effectiveness and performance
One of your key responsibilities as general manager is to develop and implement ways to improve the performance of CCF & MBs consultants and other staff members.
Answer the following questions:
Task 5: Question 1
(a)Outline the team purpose, roles and responsibilities of the CCF & MBs team.
(b)Using the work plan template provided below, develop a work plan for CCF & MB. This can be done by using actions of your choice (i.e. nurturing leads to create clients). The work plan will also include who you will allocate various tasks to achieve the plans objective. The plan must be within CCF & MBs organisational requirements and comply with legal requirements.
(c)Outline the stakeholders that you would need to consult with to ensure that the roles and responsibilities meet the CCF & MBs operational plans, resource requirements and organisational processes.
(300 words)
Student response to Task 5: Question 1
Answer here
Work plan template
Action Allocated to Responsibility Timeframe allocated
Answer here Answer here Answer here Answer here
Task 5: Question 2
Describe the process you might follow when developing quantitative and qualitative performance criteria. You should explain how you ensure that the criteria relates to CCF & MBs objectives and how to motivate and support staff members to achieve these objectives.
(200 words)
Student response to Task 5: Question 2
Answer here
Task 5: Question 3
How will you facilitate team member input into planning, decision making and operational aspects of team tasks?
(50 words)
Student response to Task 5: Question 3
Answer here
Task 5: Question 4
Locate a code of conduct, either in your workplace or on the internet. Modify and customise it to create a code of conduct that would meet CCF & MBs business requirements.
Ensure that you upload a copy of the original code of conduct as well as your modified version.
You can use the information provided at Workable. The link is available in the Toolbox.
(150 words)
Student response to Task 5: Question 4
Answer here
Task 5: Question 5
What are the benefits of evaluating and monitoring staff members on a continuous basis?
(50 words)
Student response to Task 5: Question 5
Answer here
Task 5: Question 6
Why is it important to document the performance management process? Explain the possible consequences of not retaining appropriate records of this process.
(100 words)
Student response to Task 5: Question 6
Answer here
Task 5: Question 7
In what ways can you reinforce excellence in work performance through recognition and continuous feedback? How might you be able reward staff in non-financial ways?
(100 words)
Student response to Task 5: Question 7
Answer here
Task 5: Question 8
You have realised that the majority of staff really do not understand the performance management process, development program and legal requirements. You need to deliver a training session to cover the key aspects. Map out your training program in the training template below.
You will need to cover all steps of the performance management process in the Topics/Content of your training program.
At the Fair Work Ombudsman website, you will find an excellent managing performance program. You can use this to develop your training program. The link is provided in the Toolbox.
(200 words)
Student response to Task 5: Question 8
Answer here
Time Topic/Content Resources required
Answer here Answer here Answer here
Assessor feedback: Task 5 Managing team effectiveness and performance
[insert feedback]
Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
Task 6 Performance management
Martin and Luis are working together on project involving the preparation for a loan application for one of CCF & MBs most influential clients, a property developer. Martin missed a deadline and the whole project is now behind schedule by a week. This is the third time in a month that he has missed a deadline. Martinhas had problems with meeting deadlines in the past and has already had a written warning.
As the general manager you have been monitoring Martins performance over the past month, providing informal feedback about his role in the project. Although he has made several improvements regarding his performance, his inability to meet deadlines has forced the delay of the clients development a further month. CCF & MB made a commitment to the client that the loan application would be with the prospective lender two weeks ago.
The client is not happy that he does not yet have an approval and is considering cancelling the agreement he has with CCF & MB and going elsewhere.
Task 6: Question 1
You have arranged to meet with Martin to talk about the project and his input. How would you go about providing constructive feedback to Martin?
(100 words)
Student response to Task 6: Question 1
Answer here
Task 6: Question 2
Following your meeting with Martin you have decided to continue monitoring his performance for the purposes of evaluating where improvements can be made and provide feedback. Outline the process you have adopted to conduct this monitoring exercise.
Reference material is available in Topic 1-3, Managing peoples performance.
(100 words)
Student response to Task 6: Question 2
Answer here
Task 6: Question 3
Following your meeting with Martin, use the evaluation criteria listed in the table below. You should also include any additional criteria you think is applicable. Record and document comments regarding Martins performance in the performance appraisal checklist below.
(50 words)
Student response to Task 6: Question 3
Performance appraisal checklist
Evaluation criteria Rating 15 (5 best) Team leader/general manager comments
Attendance & punctuality Answer here Answer here
Dependability Answer here Answer here
Personal appearance Answer here Answer here
Productivity Answer here Answer here
Work quality Answer here Answer here
Task 6: Question 4
Using the template below, outline a learning and development plan for Martin.
(a)Explain how you will support this team member throughout the learning and development plan.
(b)How will you ensure you obtain their commitment and agreement to the development plan?
(100 words)
Student response to Task 6: Question 4
Answer here
Notes for completion:
capability area: skill, knowledge or attribute the team member needs to acquire or improve.
learning and development strategy(s): the development tools you select (such as coaching, training) to assist them to achieve the capability area
required resources: any resources needed to achieve the chosen strategy (such as a computer etc.)
start date: when they will start the strategy
end date: when they will finish the strategy.
Capability area Learning and development strategy Required resources Start date End date
Answer here Answer here Answer here Answer here Answer here
Task 6: Question 5
If Martins performance continues to be unsatisfactory you will need to counsel and implement the organisations performance improvement process. Outline the steps (including the timeline) involved in taking an employee through the process.
A poor performance policy example is located in the Toolbox.
(200 words)
Student response to Task 6: Question 5
Answer here
Task 6: Question 6
Luis is basically the opposite to Martin. He meets deadlines and produces quality work. The project delays are not due to his work. You are considering training him to manage a new office that CCF & MB are considering opening on the other side of the country. He does not have management experience though.
You have also arranged to meet with Luis to talk about the project and his other work. How would you go about providing recognition and positive feedback to Luis?
(100 words)
Student response to Task 6: Question 6
Answer here
Task 6: Question 7
Following your meeting with Luis you have decided to monitor his management capability for the purposes of evaluating where improvements can be made and provide feedback. Outline the process you have adopted to conduct this monitoring exercise.
(150 words)
Student response to Task 6: Question 7
Answer here
Task 6: Question 8
Following your meeting with Luis, create an evaluation document. Use the below evaluation criteria template to record and document comments regarding Luis performance and capability as a manager inthe performance appraisal checklist below.
(100 words)
Student response to Task 6: Question 8
Performance appraisal checklist
Evaluation criteria Rating 15 (5 best) Team leader/general manager comments
Attendance & punctuality Answer here Answer here
Dependability Answer here Answer here
Personal appearance Answer here Answer here
Productivity Answer here Answer here
Work quality Answer here Answer here
Management capability Answer here Answer here
Communication skills Answer here Answer here
Delegation skills Answer here Answer here
Task 6: Question 9
Using the template below, outline a learning and development plan for Luis.
(a)How will you support this team member throughout the learning and development plan to help him develop his management skills?
(b)How will you ensure you obtain Luis commitment and agreement to the development plan?
(250 words)
Student response to Task 6: Question 9
Answer here
Notes for completion:
capability area: skill, knowledge or attribute the team member needs to acquire or improve.
learning and development strategy(s): the development tools you select (such as coaching, training) to assist them to achieve the capability area
required resources: any resources needed to achieve the chosen strategy (such as a computer etc.)
start date: when they will start the strategy
end date: when they will finish the strategy
Capability area Learning and development strategy Required resources Start date End date
Answer here Answer here Answer here Answer here Answer here
Assessor feedback: Task 6 Performance management
[insert feedback]
Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
Task 7 Develop a performance plan
Task 7: Question 1
In order for CCF & MB to continue to meet their primary goal of being a leader in offering broking services to the local community, they have asked you, in your capacity as the newly appointed general manager, to develop a performance plan and establish some key performance indicators (KPIs) for all customer service staff.
The objective of the performance plan is to focus on the organisations key goals and objectives in line with the Service standards statement available in the toolbox.
Information on people performance can be sourced from the learning material Topic 1-3, Peoplemanagement.
(200 words)
Student response to Task 7: Question 1
Answer here
Task 7: Question 2
Write an email for circulation within the business that praises the teams positive efforts and contributions over the last six months. Ensure that you are specific so as the team knows what they have done well and the impact that their actions.
(100 words)
Student response to Task 7: Question 2
Answer here
Task 7: Question 3
(a)What processes will you implement to identify and address issues, concerns and problems identified by team members?
(b)How will you encourage the team to participate and take responsibility for solving problems?
(c)How will you support the team to identify, participate and take responsibility for solving problems?
(d)What behaviours will you need to exhibit to promote teamwork and collaboration?
(300 words)
Student response to Task 7: Question 3
Answer here
Task 7: Question 4
In the template below, outline the communication that you will provide to key stakeholders (in particular George and Mildred, and the team). Identify at least five (5) stakeholders and advise of their preferred communication requirements.
(100 words)
Student response to Task 7: Question 4
Answer here
Stakeholder(Name or role) Requirements(What information and date) Frequency(how often) Media(meeting, report etc.)
Answer here Answer here Answer here Answer here
Task 7: Question 5
The team members are struggling to achieve the KPIs established in your performance plan and have requested that you inform George and Mildred that they cannot be achieved without an additional administration staff member (maybe just part time). After discussion and consideration, you agree. Writean email to George and Mildred outlining the issue and develop a solid case for the recruitment of an additional staff member.
(100 words)
Student response to Task 7: Question 5
Answer here
Task 7: Question 6
In Task 6 there were some serious issues with a loan application for one of CCF & MBs most influential clients, a property developer. The client is thinking of cancelling the agreement. Write an email to George and Mildred outlining the issue and how you have resolved it.
(100 words)
Student response to Task 7: Question 6
Answer here
Task 7: Question 7
The Tuckmans theory focuses on the four (4) stages a team goes through as they develop and grow together over time.
To understand more about the four stages of team development use the link from MIT Human Resources and the video Tuckmans Stages of Team Development the links are located in the Toolbox.
(a)For each of the four (4) stages of team development (forming, storming, norming and performing), describe the support you will provide the CCF & MB team to facilitate cohesiveness and teamwork. Include how you will change your leadership and management style to meet the needs of the team at each of the four stages of development.
(b)How would you consider the team members individual personality and emotional needs?
(300 words)
Student response to Task 7: Question 7
Answer here
Task 7: Question 8
One of the most difficult challenges a manager faces is to maximise performance while maintaining a positive work environment.
(a)Give three (3) examples of challenges that can arise when managers attempt to maximise productivity within a work team.
(b)For each of these challenges, provide a range of solutions to maintain team cohesion whilst maximising productivity three (3) solutions for each challenge (a total of nine (9)).
Refer to the Toolbox for a helpful link.
(250 words)
Student response to Task 7: Question 8
Answer here
Challenge Solution 1 Solution 2 Solution 3
Answer here Answer here Answer here Answer here
Assessor feedback: Task 7 Develop a performance plan
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Date assessed: Click here to enter a dateDoes the student need to resubmit? No
Questions that need to be resubmitted First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission.
