Written Assignment

Diploma of Finance and Mortgage Broking Management (DFMB1_AS_v1)

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Student identification (student to complete)

Please complete the fields shaded grey.

Written assignment overall result (assessor to complete)

First submission
Resubmission (if applicable)

Result summary (assessor to complete)

Section 1: Industry knowledge	First submission	Resubmission (if required)
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 client’s 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 — Purchasing an owner-occupied home


Task 14: Completing the Fact find

Task 15: Assessing the clients’ situation

Task 16: Presenting borrowing options and potential benefits


Task 17: Supporting the client to settlement

Task 18: Case study — Refinancing a home loan


Task 19: Preparing a Preliminary Assessment

Task 20: Case study — Purchasing an investment property

Task 21: Preparing a loan proposal


Task 22: Loan contracts and security documentation

Task 23: Preparing the loan for settlement			Not applicable

Please note: To pass this written assignment, you will need to be assessed as DEMONSTRATED in either your first submission or your resubmission in all tasks above.

Task feedback

Please refer to the assessor’s detailed feedback found at the end of each task so that you know what to do for any tasks you need to resubmit.

Before you begin

Read everything in this document before you start your written assignment for Diploma of Finance and Mortgage Broking Management (DFMB1_AS_v1).

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 client’s 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 home
Task 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 the written assignment within your enrolment period. Your study plan is in the KapLearn Diploma of Finance and Mortgage Broking Management (DFMB1v1) subject room.

Instructions for completing and submitting the written assignment

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
Name your file as follows: Studentnumber_SubjectCode_Assignment_versionnumber_Submissionnumber (e.g. 12345678_DFMB1_AS_v1_Submission1).
Include your student ID on the first page of the

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

Word count

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

Additional research

When completing the ‘Client information collection 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 client’s requirements, to source indicative interest rates and to calculate any fees and charges that may be applicable.

Submitting the written assignment

Only Microsoft Office compatible written assignments submitted in the template file will be accepted for marking by Kaplan Professional Education. You need to save and 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 written assignment must be submitted together with the oral assignment. If you do not submit both completed assignments at the one time it 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.

Once you submit your written assignment for marking you will be unable to make any further changes to it.

You are able to submit both assignments 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 completed assignment.

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

Your assessor will mark your written and oral assignment and return it to you in the Diploma of

Finance and Mortgage Broking Management (DFMB1v1) subject room in KapLearn 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 assignment:

Assess your responses to each question, and sub-parts if applicable, and then determine whether you have demonstrated competence in each
Determine if, on a holistic basis, your responses to the questions have demonstrated overall

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

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

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

Units of competency

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

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. If you are not currently in a Finance and Mortgage Broker role, your answers are to reflect what you would do if you were working in the Finance and Mortgage Broking industry. You can also draw on your current and past work experiences and refer to the topic notes. You may also need to conduct your own research and consult with people who currently work within the Finance and Mortgage Broking industry.

Section 1: Industry knowledge

Task 1: Key terms

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

Demonstrate your understanding of some of the common terms by completing the following table:

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

Lender and borrower

A lender is a financial institution that makes loans available to an individual while a borrower may be an institution or an individual taking out a loan from a financial institution with the intention of repaying. The repayment of the loan is typically with interest.

Lessor and lessee

A lessor is an individual or an organization who is the owner of an asset that he makes available to another entity to use and in return he gets compensated for its use. A lessee is an individual who rents land or property.

Mortgagee and mortgagor

A mortgagee is the entity that provides loans to individuals for the purchase of a house while a mortgator is an an individual or a group of individuals taking out loans for the purchase of a house.

Assessor feedback for Task 1 — Key terms

(Insert feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission
Resubmission (if required)

Task 2: The Australian financial market

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

The Reserve Bank of Australia (RBA) is Australia’s central bank and is responsible for monetary policy; financial and payment 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)

Task 2: Question 1(b)

It is important that the RBA have the controls you mentioned in part (a).

In your own words, explain what monetary policy
Explain the RBA’s inflation target (e.g. what is the target, and over what period)

(25 words)

Student response to Task 2: Question 1(b)

Task 2: Question 1(c)

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

What is the role of the cash rate?
Name three (3) things that the cash rate has an impact

(25 words)

Student response to Task 2: Question 1(c)

Assessor feedback for Task 2 — The Australian Financial Market

(Insert feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission
Resubmission (if required)

Task 3: Financial services legislation and industry codes of practice

Task 3: Question 1

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

Complete the table below with the following information:

Identify the names of two (2) Regulations/Legislations and two (2) codes of practice that you need to keep up to date
Provide the website name and URL address of each of the Regulations/Legislation and codes of practice from (a).
Explain how these websites are helpful for keeping up to date with

(40 words)

Student response to Task 3: Question 1

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

Task 3: Question 2

Provide one (1) example of how the NCCP Act would be implemented into a work situation for a mortgage
List two (2) risks and the consequences that are associated with not complying with the NCCP

(50 words)

Student response to Task 3: Question 2

Task 3: Question 3

In your own words, describe the key features of the Privacy Act 1988.
Provide one (1) example of how the Privacy Act would be implemented into a work situation for a mortgage

(50 words)

Student response to Task 3: Question 3

Task 3: Question 4

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

Task 3: Question 5

In your own words, describe the key features and the purpose of codes of
Provide one (1) example of how a code of practice would be implemented into a work situation for a mortgage

(50 words)

Student response to Task 3: Question 5

Task 3: Question 6

In your own words describe the best interests
Provide one (1) example of how the best interests duty would be implemented into a work situation for a mortgage

(50 words)

Student response to Task 3: Question 6

Task 3: Question 7

How would you communicate any changes in regulations, legislation, or codes of practice to your work colleagues?
Explain how you would execute the changes to your organisation’s policy, procedures and practices to ensure that you are meeting the changes, for example, The introduction of Best Interests Duty.

(80 words)

Student response to Task 3: Question 7

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

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

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

(Insert feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission
Resubmission (if required)

Assessor feedback for Task 3 — Financial services legislation and industry codes of practice

Task 4: Products and services

The Financial Services Industry is very competitive, with many organisations offering a number of different lending and transactional products and services.

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

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

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

Task 4: Question 1

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

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
Product	1.	1.	1.
characteristics	2.	2.	2.
(features) *List a minimum of*	3.	3.	3.
*three (3) key*
*features*
Product purpose (what would a client use this for?)
Applicable Fees & Charges
List a minimum of three (3) key terms	1. 2.	1. 2.	1. 2.
and conditions of	3.	3.	3.
this product
List one (1) Strength & one (1) weakness	Strength: Weakness:	Strength: Weakness:	Strength: Weakness:

	4. Home equity loan (line of credit)	5. Credit Card	6. Personal Overdraft
Financial institution & name of product
Product	1.	1.	1.
characteristics	2.	2.	2.
(features) *List a minimum of*	3.	3.	3.
*three (3) key*
*features*
Product purpose *(what would a client use this for?)*
Applicable Fees & Charges	1. 2.	1. 2.	1. 2.
*List a minimum of*	3.	3.	3.
*three (3) key terms*
*and conditions of*
*this product*
List one (1) strength & one (1) weakness	Strength: Weakness:	Strength: Weakness:	Strength: Weakness:

Task 4: Question 2

What tools are available for a broker to conduct their product research?

(Name a minimum of two (2))

Describe how you would determine the most suitable product or service for a client?

(30 words)

Student response to Task 4: Question 2

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

Task 4: Question 4

How do financial service providers market and/or promote their products and services?
Where can you locate a lending organisation’s current promotions and specials?
Describe how you would identify clients whose needs match products and services that are part of a current promotional
Describe how you can keep your product knowledge up to Include the methods and/or systems you could use to maintain product knowledge.

(40 words)

Student response to Task 4: Question 4

Task 4: Question 5

The ABA’s 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.

List at least two (2) items of information that must be provided to a client when providing financial products and
Refer to the items you listed in part (a) and explain what the items clearly set
What four (4) factors does the Code advise about providing banking services to vulnerable clients?
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

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

Assessor feedback for Task 4 — Products and services

(Insert feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission
Resubmission (if required)

Section 2: Business skills

Task 5: Effective communication

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

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

Task 5: Question 1

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

(40 words)

Student response to Task 5: Question 1

Task 5: Question 2

Explain why listening is so important for effective
List three (3) barriers to effective

(30 words)

Student response to Task 5: Question 2

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

Assessor feedback for Task 5 — Effective communication

(Insert feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission
Resubmission (if required)

Task 6: Professional development

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

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

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 organisation’s 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

Explain why is it important for your individual work goals to align to the organisation’s goals?
Identify the types of organisational framework that you can refer to when planning your work goals to ensure that they align to the organisation’s
List the colleagues you would consult with if you were unsure of your own role responsibilities and how that fits into the wider

(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

Task 6: Question 2

Where would you document (record) your role responsibilities and role specific targets?
Explain how you will set goals to ensure you will achieve your set role expectations and

(50 words)

Student response to Task 6: Question 2

Task 6: Question 3

How and where can you record and document your personal and professional development goals?
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)

(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

Task 6: Question 4

You are required to create a Professional Development Plan (PDP). (Refer to the Toolbox and the CCF & MB business profile 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
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).

Explain how often you would review and update your Professional Development Plan and who you would consult with to ensure you are maintaining and managing your personal

(100 words)

Student response to Task 6: Question 4

(a) PERSONAL PROJECT PLAN ON IMPROVING MY MORTGAGE BROKERING SKILLS

Objectives	Priority	Activities required to achieve my objectives	Which support /resources needed to achieve objectives	Target date for achieving	Actual date of achieving
.improving on my questionin	high	.Undertake research .Doing practise on how to converse with different clients	.watching youtube videos on questioning techniques.	30/12/202 2
g skills			.seeking advice from
.			renowned brekers.
developin
g good
rapport
with
clients and
how to
start it off.


Review date: 30/12/2022

(b)

It is advisable to review it quarterly a year so that incase there is need for goals revision there would be much difference.

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.

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 Toolbox for a link to a short video, ‘The Eisenhower matrix: How to manage your tasks with Eisenhower’

Refer to the example business profile for Capital City Finance & Mortgage Brokers (CCF & MB) for a Mortgage Consultant’s 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)

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

Answer here

Important/Not Urgent

Answer here

Not Important/Urgent

Answer here

Not Important/Not Urgent

Answer here

Source: Marquette Educator

Assessor feedback for Task 6 — Professional development

(Insert feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission
Resubmission (if required)

Task 7: Respond and report on complaints

Refer to the Toolbox for a helpful link and your organisation’s Policies and Procedures regarding handling complaints and disputes.

Task 7: Question 1

In accordance with the industry’s external resolution scheme, the Australian Financial Complaints Authority (AFCA), who should a client refer their complaint to in the first instance?
In accordance with AFCA, if a provider of financial products and services is unable to provide a resolution within 45 days, what are the four (4) steps they must take?

(50 words)

Student response to Task 7: Question 1

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 they’ve 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.

Describe the steps you will take to resolve this complaint. Include the stakeholders you will refer to in the resolution
Describe the resolution you will communicate to the

Hint/Tip:

You may refer to the Toolbox for your organisation’s Policies and Procedures regarding handling complaints and disputes.

(80 words)

Student response to Task 7: Question 2

Task 7: Question 3

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

Student response to Task 7: Question 3

Customer name

Title (Mr, Mrs, etc.)

(surname)

Given Names

Mr.

Harper

Joseph

Service being provided to client:

Loan Application

Nature of complaint:

The client is concerned about the time it has taken to approve his loan application he applied ten days ago. He fear he may lose out on an investment opportunity that he has already made an offer that is subject to finance.

Outcome:

The client was informed about the timeline it takes to approve a loan, but out of goodwill the lender agreed to fast track the process in two business days.

Assessor feedback for Task 7 — Respond and report on complaints

(Insert feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission
Resubmission (if required)	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’s school, social/professional media platforms.

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

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.

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 Complete the table below by outlining how your connection with these networks is of benefit to you and to the broking business.
From the list in Part (b), choose three (3) connections/networks. Explain how you develop and maintain those Include how you will stay in contact and also how you will enhance the relationship to ensure it remains mutually beneficial.
Identify and explain the importance of three (3) communication channels and tools that you use to develop and maintain professional

(100 words)

Student response to Task 8: Question 1

Network

Benefit You

1.Project Manager

Guidance

2. Realtor

He acts as a liason between me and the client

3. Investment Banker

Liason between the client and the Lender

Network

Benefit to the business

4. AFCA representative

Advisory external dispute resolution mechanisms.

5.Financial Consultant

Reviewing the different loans offers and client background checks

6.IT officer

Updating the systems in a timely manner.

Network/Connection – Name	Type of Network/Connections	Actions you take to Develop & Maintain the relationship
1.Manager	Internal	Constant communication
2.IT officer	Internal	Team Building
3. Realtor	External	Collaboration on projects

Communication method

Why is this method important?

1.Email

Faster, cheaper, convenient and timely

2.Website

Accesible

3.Phone calls

It is responsive and convenient when information is needed to be relied quickly

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

Task 8: Question 3

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

(75 words)

Student response to Task 8: Question 3

Assessor feedback for Task 8 — Professional networks

(Insert feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission
Resubmission (if required)	Not applicable

Section 3: The lending process

Task 9: Understanding the client’s needs

Brokers have both ethical and legislative obligations to understand a client’s needs and objectives. There are obligations for making reasonable inquiries and verifications under the NCCP’s 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

Task 9: Question 2

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

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

(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

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

Task 9: Question 4

Explain the information that is contained in a credit
Why it is important that the client provides all the details about their credit report to their broker upfront?
What are the credit provider’s obligations to the client if a loan is declined due to their credit report?
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

Assessor feedback for Task 9 — Understanding the client’s needs

(Insert feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission
Resubmission (if required)

Task 10: Developing and presenting solutions

Task 10: Question 1

What steps would you take when presenting loan solutions to a client to ensure it is effective in meeting their needs and objectives? Include the techniques and technology that you could use to make your presentation.

(50 words)

Student response to Task 10: Question 1

Task 10: Question 2

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

List a minimum of three (3) types of assets that lenders may take as collateral to secure a (This can be security for either consumer or commercial lending)
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
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?
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 2

Assessor feedback for Task 10 — Developing and presenting solutions

(Insert feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission
Resubmission (if required)

Task 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 lender’s requirements.

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

Task 11: Question 1

Explain what documents you would gather to verify:
- a PAYG employee income
- rental income for an existing investment
Choose two (2) 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

(60 words)

Student response to Task 11: Question 1

Document	Write one (1) question to confirm information with your client
1. payslips and letter from employer
2. credit representative’s

Task 11: Question 2

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

Explain how you confirm that you have the correct supporting documents for your client’s loan requirements in accordance with the lender’s

(For example. If the loan application was for an investment property, there would be specific supporting documents for this loan requirement.)

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

(40 words)

Student response to Task 11: Question 2

Assessor feedback for Task 11 — Packaging the application to send to the lender

(Insert feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission
Resubmission (if required)

Task 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

Assessor feedback for Task 12 — Monitor the lending process

(Insert feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission
Resubmission (if required)

Section 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 broker’s office or in the client’s 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.

What documents would you attach to the email?
What information would you include in the email about your service?

(50 words)

Student response to Task 13: Question 1

Task 13: Question 2

How do you assess the need to adjust your interpersonal style to communicate with different types of clients effectively?

Provide two (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

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

Assessor feedback for Task 13 — Purchasing an owner-occupied home

(Insert feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission
Resubmission (if required)

Task 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

Student response to Task 14: Question 1

Client information collection tool/Fact finder

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 lender’s LMI provider. Please use the Genworth LMI calculator for all LMI calculations. There are links provided in the Toolbox to help you calculate the applicable fees and charges. For the purposes of this assignment, you may use the LMI premium excluding stamp duty.

Appointment date: Student to insert date

Appointment time: Student to insert time

		Applicant 1	Applicant 2
Surname		Brown
Other names		Philip
Contact details	Address	1181 Joseph St Dekaware 2211
	Duration at the Address	5 years 7 months
	Phone	(02)9811134
	Email	[email protected]
Employment		Techno Bridges Corporation
How long?		Started 12/2/2010
Previous employer (if less than two years)		N/A
How long?		N/A
Employment type (FT/PT/Casual/Self-employed)		FT
Gross income (p.a.)		$120,000

Number of dependants	3
Motor vehicles Make/Model/Year/Value $	1
Loan purpose	To purchase a 45mx 100m investment property
Purchase price/Valuation	$750,000
Deposit on property	$250,000
Loan amount	$500,000
Borrowing capacity (using Genworth serviceability calculation)	$600,000

Assets and liabilities

Assets		Liabilities
Details	Market value	Details	Monthly payments	Amount owing
Owner Occupied Property at:		Mortgage with:
Investment Property at:		Mortgage with:
Cash at bank (includes fixed deposits)	$250,000	Car leasing
Other cash		Personal loans
(includes offset accounts)		1.
		2.
Deposit paid on property (only if paid)		Overdraft
Motor vehicles: 1.	$40,000	Other loans: 1.
2.		2.
Personal effects	$75,000	Credit card limit: ABA $15,000	$1500	$500
Business value (if self- employed)		Credit card limit Westpac $10,000	$2500	$4500
Shares and investments		Other:
Superannuation	$105,000	Other:
Other assets (give details)		Other:
Total assets	$470,000	Total liabilities	$4000	$5000

Surplus/deficiency: (Total assets less Total liabilities) $461,000

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)	$5000
Entertainment (include online subscriptions, e.g. Netflix/Stan)	$1000
Other (detail below):	N.A

MONTHLY LIVING EXPENSES	$29,000

Needs analysis

1	Name of your current lender?
2	What type of loans do you have?		N/A
3	Why did you choose this particular loan and lender?
4	What is the interest rate on your current loan?
5	What are your payments?	Amount
6		Frequency
7	Do you know the fees and charges?
8	What is your proposed purpose for the new loan you are applying for?		Property Investment Loan
9	Branch access available with current lender
10	Internet banking available with current lender
11	Phone banking available with current lender
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		Monthly
16	Redraw
17	Offset
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.

Anticipated fees and charges

Anticipated purchase price Deposit on property

Total Loan amount

LVR %

$750,000

$250,000

$500,000

4.5%

Purchase costs

0Stamp duty – Transfer of Land

Registration fee – Transfer of Land

Solicitor/conveyancer Fee

Rates and land taxes (estimate) Pest inspection (estimate)

Building Inspection (estimate)

$500

$75,00

$500

N/A

$1,000

Borrowing costs Application/establishment fee Valuation fee

Security admin fee LMI

Registration of mortgage Discharge/Release of mortgage fee Search fees

Other

$50

$100

$50

N.A

N/A

$50

Total purchase and borrowing costs

$9750

Funds to complete

PURCHASE AND LOAN COSTS:		AVAILABLE FUNDS:
Purchase price:	$750,000	Deposit if already paid to Agent:	$250,000
Lender application/valuation fees:	$500	Cash savings:
Stamp duty payable – Transfer of Land		Sale proceeds:
Registration fee – Transfer of Land	$1000
Registration of Mortgage – Land titles office		Gift:
Solicitors fees:	$75000	FHOG:
Other		Other:
Lenders Mortgage Insurance Added to Loan		Other:
TOTAL COSTS (A):	$759,000	TOTAL OWN FUNDS (D):	$250,000
LOAN AMOUNT REQUESTED (B):	$500,000	OWN FUNDS REQUIRED(A–B) = C:	$259,000
OWN FUNDS REQUIRED (A– B) = C	$259,000	SURPLUS/SHORTFALL (D–C)	$-9,000

Assessor feedback for Task 14 — Completing the fact find

(Insert feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission
Resubmission (if required)

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

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 Organisation’s 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

Assessor feedback for Task 17 — The loan approval and settlement process

(Insert feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission
Resubmission (if required)

Case 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.

T0ask 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.

Using the client information collection tool / Fact finder, complete:
- assets and liabilities
- needs analysis
- anticipated fees and charges
- funds to complete

Student response to Task 18: Question 1

Client information collection tool/Fact finder

Appointment date: Student to insert date

Appointment time: Student to insert time

		Applicant 1
Surname		Miss
Other names		Mary Azacca
Contact details	Address	114 William street, Woolooware NSW 2230
	Phone (W) Phone (H)	3 years
	Mobile	0426 123 987
	Email	[email protected]
Employment		Technologies NSW Pty Ltd
How long?		Started 12/7/2012
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.)	$75,000
Net income (monthly)	$60,00
Number of dependants	0
Motor vehicles Make/Model/Year/Value $	Holden commodore S5 2007
Loan purpose	To purchase an existing 45sqm sized, 2-bedroom apartment
Purchase price/Valuation	450,000
Deposit on property	100,000
Loan amount	350,00
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		Mortgage with: Simply Home Loans
Investment Property at:		Mortgage with:
Cash at bank (includes fixed deposits)	$135,000	Car leasing
Other cash		Personal loans
(includes offset accounts)		1.
		2.
Deposit paid on property (only if paid)		Overdraft
Motor vehicles: 1. Holden Commodore SS 2007 2. Nissan Qashqai 2019	Holden Commodore S5 2007	Other loans: 1.$25,000 2.
3. Indian Scout Motorcycle 2018	$25,000
Personal effects	$30,000	Credit card limit: NAB $3000	$150
Business value (if self- employed)		Credit card limit: Westpac $4000	$120
Shares and investments		Other:
Superannuation	$50,000	Other:
Other assets (give details)		Other:
Total assets	$240,000	Total liabilities	$270

Surplus/deficiency: (Total assets less Total liabilities) $239,730

CURRENT MONTHLY LIVING EXPENSES (Provide a breakdown of the total amount listed in the case study — use your discretion)
Food/housekeeping	$10,000
Insurance (e.g. motor vehicles, home contents/ building, medical, life/income protection)	$5,000
Utilities (e.g. rates, gas, electricity, transport)	$5,000
Transport (e.g. public transport, petrol, registration, repairs)	$5,000
Education (e.g. school, college, university)	$5,000
Dependants support (e.g. childcare, child maintenance)	$5,000
Entertainment (include online subscriptions, e.g. Netflix/Stan)	$5,000
Other (detail below):

MONTHLY LIVING EXPENSES	$40,000

Needs analysis

1	Name of your current lender?		WBC
2	What type of loans do you have?		Car loan
3	Why did you choose this particular loan and lender?		efficiency
4	What is the interest rate on your current loan?		4.25%
5	What are your payments?	Amount	$10,000
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		ye
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		2.30%
15	Payment frequency		monthly
16	Redraw		n/a
17	Offset		n/a
18	Salary crediting		n/a
19	Low fees and charges		Yes

Assessor feedback for Task 18 ― Refinancing a home loan ― Gathering information

(Insert feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission
Resubmission (if required)

Task 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:

provide the result using the calculator
explain if the customer will benefit from switching

The MoneySmart link can be located in the Toolbox. Use the Mortgage switching calculator.

(50 words)

Student response to Task 19: Question 1

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

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:
Lender’s name	Azx	ABC	ADC
Loan product:	Home loan	Home loan	Home loan
Loan Amount:	$350,000	$400,000	$450,000
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 wont be able to sustain her livelihood and pay two loans concurrently.

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

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

Task 19: Question 6

What other issues may impact, now or in the future, on the client’s ability to meet their obligations, including any possible risks?

(30 words)

Student response to Task 19: Question 6

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 Use the internet or, if working in the industry, internal software to do this.
Explain the option you recommend and the reasons for the recommendation — including the loan amount, term and Explain how the recommended product meets the clients’ needs (refer to the case study)
Invite questions from the client and respond in a follow up email

(200 words)

Student response to Task 19: Question 7

Task 19: Question 8

Mary has responded to your email asking some questions.

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

Assessor feedback for Task 19 — Preparing a preliminary assessment

(Insert feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission
Resubmission (if required)

Case 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.

The clients have already paid the 10% deposit, so you will need to act fast as they need to settle in 60 days.

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

Task 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:

Client information collection tool / Fact finder
Assets and liabilities
Needs analysis
Credit representative notes
Anticipated fees and charges
Funds to

Student response to Task 20: Question 1

Client information collection tool/Fact finder

Appointment date: Student to insert date

Appointment time: Student to insert time

		Applicant 1	Applicant 2
Surname		Ravi
Other names		Patel
Contact details	Address	02100-mainstreek Delamere	Answer here
	Phone (W) Phone (H)	0435-34567	Answer here
	Mobile	(02)9785632	Answer here
	Email	[email protected]	Answer here
Employment		Tech house	Answer here
How long?		6 years	Answer here
Previous employer (if less than two years)		n/a	Answer here

How long?	n/a	Answer here
Employment type (FT/PT/Casual/Self-employed)	FT	Answer here
Gross income (p.a.)	$80,000	Answer here
Number of dependants	1	Answer here
Motor vehicles Make/Model/Year/Value $ Toyota Prado 2015	Toyota Prado 2014 $20,000	Answer here
Loan purpose	Investment property
Purchase price/Valuation	$500,000
Deposit on property	$50,000
Loan amount	$450,000
Borrowing capacity (using Genworth serviceability calculation)	$600,000

Assets and liabilities

Assets		Liabilities
Details	Market value	Details	Monthly payments	Amount owing
Owner Occupied Property at:		Mortgage with: Penrith Mutual Home Loan
Investment Property at:		Mortgage with:
Cash at bank (includes fixed deposits)	$200,000	Car leasing
Other cash (includes offset accounts)		Personal loans 1. 2.
Deposit paid on property (only if paid)		Overdraft
Motor vehicles: 1. Toyota Prado 2015 2.	$20,000	Other loans: 1. 2.
Personal effects Household effects	$75,000	Credit card limit: Answer here	$1500	$500
Business value (if self- employed)		Credit card limit: Answer here	$200o	$4000
Shares and investments		Other:
Superannuation Ravi Alice	$100,000	Other:
Other assets (give details) Boat: Bar crusher 2017		Other:
Total assets	$395,000	Total liabilities	$3500	$45000

Surplus/deficiency: (Total assets less Total liabilities) $387,000

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)	$15oo
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?
2	What type of loans do you have?
3	Why did you choose this particular loan and lender?
4	What is the interest rate on your current loan?
5	What are your payments?	Amount
6		Frequency
7	Do you know the fees and charges?
8	What is your proposed purpose for the new loan you are applying for?		Property Investment loan
9	Branch access available with current lender
10	Internet banking available with current lender
11	Phone banking available with current lender
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
17	Offset
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.

Anticipated fees and charges

Anticipated purchase price Deposit on property

Total Loan amount

LVR %

$600,000

$50,000

$550,000

4.5%

Purchase costs

Stamp duty ― Transfer of Land Registration fee ― Transfer of Land

Solicitor/Conveyancer Fee Rates and land taxes (estimate)

Pest inspection (estimate)

Building Inspection (estimate)

$1,000

$7,500

$500

$200

$1,000

Borrowing costs Application/Establishment fee Valuation fee

Security admin fee LMI

Registration of mortgage Discharge/Release of mortgage fee Search fees

Other

$100

$50

N/A

$50

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:
Stamp duty payable – Transfer of Land		Sale proceeds:
Registration fee – Transfer of Land	$1000
Registration of Mortgage – Land titles office		Gift:
Solicitors fees:	$7,500	FHOG:
Other		Other:
Lenders Mortgage Insurance Added to Loan		Other:
TOTAL COSTS (A):	$608,700	TOTAL OWN FUNDS (D):	$50,000
LOAN AMOUNT REQUESTED (B):	$550,000	OWN FUNDS REQUIRED(A–B) = C:	$53,700
OWN FUNDS REQUIRED (A– B) = C	$53,700	SURPLUS/SHORTFALL (D–C)	$-3,700

Assessor feedback for Task 20 — Case study 3 — Purchasing an investment property

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Task 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 owner-occupied 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	02100-mainstreek Delamere
Phone and e-mail	(02)9785632
Proposed 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 features:
Split 2	Purpose:pProperty 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. We estimate this to be $ .

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

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

you.

Application fee: Establishment fee:

Lenders mortgage insurance: Valuation fee:

Transfer duty fees:

$500

$400

$800

$300

$450

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.

Refinancing fees: Discharge fee: Other known costs: Total

$900

$650

$300

$4300

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.

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, internal software 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
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

(200 words)

Student response to Task 21: Question 2

Task 21: Question 2

Ravi has responded to your email asking some questions. Send a reply email to Ravi and respond to their questions.

Send a reply email to Ravi ensuring that you answer all of their questions:

(100 words)

Student response to Task 21: Question 3

Assessor feedback for Task 21 — Preparing a loan proposal

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Task 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

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

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

Task 22: Question 4

Now that the client has signed the documents, explain how you will submit the documents to the
Include a comprehensive list of the documents that the lender will require in order to proceed with This may also include lender specific documents for the new loan account etc.

(50 words)

Student response to Task 22: Question 4

The first step for the broker is to liase with the lender to clarify on the documentation needed and where to drop the paperwork. It is usually there headquaters but it is important to be proactive and available incase the lender needs additional
The documents needed are personal and financial information, they may include: Pay stub for the last 30 days

W-2 forms, last two years

Signed federal tax return, last two years Documentation of any other sources of income Bank statements, two most recent

Documentation of the source of your down payment: investment or savings account statements showing at least two months’ history of ownership. If some of the funds were a gift, get a signed statement from the giver stating that the funds were a gift.

Documentation of name change, if recent

Proof of your identity (typically a drivers’ license or non-driver ID) Social security number

Certificate of housing counseling or home buyer education, if you have one

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 organisation’s service standards as outlined in the Toolbox.)

(20 words)

Student response to Task 22: Question 5

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

Assessor feedback for Task 22 ― Loan contracts and security documentation

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Task 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.

Building insurance
Independent legal

Why are these two pre-settlement conditions required? Explain the importance of each of item.

(40 words)

Student response to Task 23: Question 1

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

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

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

Task 23: Question 5

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

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

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

Student response to Task 23: Question 5

Purchaser/s:	Ravi and Alice Patel
Property:	Investment Property
Purchase
Purchase price:		1000000$
Less:
	Deposit paid	450000($ )
Subtotal		550,000$
Adjustments
Plus	Council rates	100000$
Less
Amount due on settlement to vendor		450000$
Disbursements
	Eastern Conveyancing	30,000$
	Land transfer duty & fees	20,000$
Amount due on settlement from purchaser		400,000$

Assessor feedback for Task 23 — Preparing the loan for settlement

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