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Course Code
FNS50315
Module No.
2
Course Title
Diploma of Finance and Mortgage Broking Management
Units Assessed
BSBITU306 Design and produce business documents FNSFMB403 Present broking options to client FNSFMB401 Prepare loan application on behalf of finance or mortgage broking clients FNSFMB501 Settle applications and loan arrangements in the finance and mortgage broking industry FNSCRD301 Process applications for credit
Assessment Name
Module 2 Practical Assessment
Type of Assessment
This summative assessment will enable your Assessor to make a judgement of competency based on the submission of your completed assignments against the requirements of the unit/s of competency in this module.
Benchmark
The Assessment Benchmark developed for each unit of competency is the evidence criteria used to judge the quality of performance (i.e. the assessment decision-making rules). Assessors use these benchmarks to make judgement on whether competency has been achieved and to determine if you have performed to the standard expected to meet the unit requirements. 
Reasonable Adjustment
Where appropriate Monarch Institute will allow flexibility in the way in which each unit is assessed based on the needs of an individual.
Assessment Coding
Assessment of this course is based on competency-based principles.
S = Satisfactory NS = Not Satisfactory
If you fail to perform satisfactorily for the assessment in the prescribed way you may be assessed as ‘not satisfactory’. You are required to be assessed as ‘Satisfactory’ in all assessments for each unit of competency.
Re-assessment
Re-assessment can be submitted after you have reviewed the learning materials and practiced enough to feel confident in your resubmission. You are re-assessed in only the areas where your assessor has indicated they were initially assessed as NS. It is at the assessor’s discretion to re-assess the entire assessment should an overall understanding not be demonstrated.  When you are re-assessed as ‘satisfactory’ after re-submission you will achieve competency for this assignment.
Declaration of Understanding and Authenticity
I acknowledge the assessment process has been explained and agree to undertake assessment. I am aware of where to find the assessor’s feedback for the assessment. I am aware of the appeals process, should the need arise. I also understand I must be assessed as ‘satisfactory’ in all parts of the assessment/s to gain an overall satisfactory result for unit/s of competency. If I am found to be NS after a second attempt, I may incur fees for re-enrolment in the unit/s.
I certify that the attached material is my original work. No other person’s work has been used without due acknowledgement. I understand that the work submitted may be reproduced and/or communicated for the purpose of detecting plagiarism. I understand a person found responsible for academic misconduct will be subject to disciplinary action (refer to Student Information Guide).
* I understand that by typing my name or inserting a digital signature into this box that I agree and am bound by the above student declaration.
Student Name*:
Date:
Submission instructions:
Key steps that must be followed:
Complete the Declaration of Understanding and Authenticity.
Once you have completed all parts of the assessment login to the Monarch Learning Management System (LMS) to submit your assessment.
In the LMS, click on the link to ‘Submit [assessment name]’ in your course and upload your assessment files. Click save and then click submit assignment
Please be sure to click ‘continue’ after clicking ‘submit assignment’.
Before you start
You’ll need to download from the Course website a number of documents to complete these assessment questions. Here’s a checklist:
Application form-generic
Angus Anderson credit application summary
Bank loan offer documents list
Bank statement H Harris
Client objectives and requirements
Contract note H Harris
Cover sheet example
DD example
Estimated living expenses
Fact finder
Genworth guidelines
Home mortgage consumer reference
How much cash is required to purchase worksheet
ID example H Harris
H Harris information
H Harris further information
Key facts example
Land transfer example
Lending terms and conditions example
Loan application supporting doc list
Loan application supporting documentation procedure
Loan offer docs example H Harris
Loan options
Mary Rose credit application summary
Matilda Home loans credit assessment procedure
Mortgage of land example
Outback home loans document style guide
Payment summary H Harris
Payslip example H Harris 1
Payslip example H Harris 2
Preliminary Assessment
Qualifying criteria lvr
Serviceability-generic
Title search example
Valuation fee authorisation
Activity 1
Design and produce business documents 1
BackgroundYou are a broker who is employed by Outback Home Loans. Your manager wants to improve the Loan File documentation – a new Cover sheet is required.
Your tasks
At the front of each Loan File is a cover sheet which shows the progress of the loan application from start to completion. Prepare a cover sheet as a checklist for the steps in the loan process. The cover sheet should list the clients basic contact details and each of the steps in the loan process with a check column/box to mark the date completed/actioned.
You can use whichever software/app you want as long as the finished product is saved in pdf format for uploading with your submission. A spreadsheet such as Excel is ideal.
Hint: For the list of steps refer to sect 2.1.1. Refer to the resource ‘Outback home loans document style guide’ and sect 2.2.3 Basic principles of document design in Module 2 Learner Guide.
See attachment
Which software application did you use for this activity and why?
Excel software is easy to store and organize data sets. Tools help make sense of data can add formulas for totals.
Explain how you completed the document within the designated timelines.
Hint: How would you find out when the document was due to be completed and how would you check you were within time.
How can create Time/reminder tasks on excel to track the deadlines.
How and where would you store the doc to avoid data loss/damage?
How did you name the file?
Hint: Where will you store all your standard forms so they are all together (what folder name to use)?
For the most effective backup plan, store your backups in a physically separate location to prevent the risk of data loss from physical destruction or theft. Cloud storage is also an effective means of backing up data as it stores data remotely and is easily accessed from any device through the Internet.
What help/information did you use to overcome basic difficulties with doc design?
Hint: Can be the App help, google search or you asked someone.
Google to look at designs
What type of device did you use to create the document?
Hint: Laptop PC, Smart Phone etc and operating system such as windows/apple/android.
Laptop
Explain how you selected the layout and style for the document.
Hint: Refer resource ‘Outback home loans document style guide’ and sect 2.2.3 of Module 2 Learner Guide.
Follow the The traditional principles of graphic design are: Contrast, Repetition, Alignment and Proximity. For document design this list can be expanded to include 6 general principles: Proximity Related items/elements are grouped together logically. Balance The distribution of text blocks and graphics is balance on the page. Alignment Elements should have a visual connection with the other elements. Repetition Repeating critical elements creates association and emphasis. Contrast Elements should be very different not similar. Space Spacing between elements and margins should be consistent
Explain how you applied basic design principles to the design of this document.
Hint: Refer sect 2.2.3 of Module 2 Learner Guide.
Follow the example coversheet
Explain how you ensured consistency of design, layout and formatting in preparing this document.
Hint: Refer resource ‘Outback home loans document style guide’ and sect 2.2.3 of Module 2 Learner Guide.
Use a Range Of Functions to Ensure Consistency of Design and Layout Functions … and footers Editing Merging documents Spell checking Table formatting 
Explain how you proofread the document.
Hint: Refer to resource ‘Outback home loans document style guide’ as a checklist.
Check grammar, spacing, sentence
Activity 2
Design and produce business documents 2
Background
You are a broker who has recently started working with Outback Home Loans.
You have just prepared your first loan application and submitted it to the lender today.
Your manager has indicated that you need to send an email to your client giving them an update of progress. Your manager wants to see your first email to check it is OK for content and format/style.
Your task is to design an email (to the client) to confirm the submission and advise how long you expect before the lender will get back to you on the application.
This is primarily a design task to create a standard email template that you will re-use for other clients.
Your email should cover: Subject, Greeting, Purpose/content, sign off and Footer/Disclaimer.
Create in a word type application and save as a pdf for uploading.
Hint: Google.
See attachment
Which software application did you use for this activity and why?
Word
How did you search/look for help?
Hint: A colleague or did you google ‘Disclaimer’.
Financial experience
Activity 3
Design and produce business documents 3
Background
You are a broker who is employed by Outback Home Loans. Your manager has taken you through the company’s processes and has shown you a worksheet form ‘How much cash is required to buy a property’. This form is used for clients seeking a loan to buy a property and records your calculations – you give it to the client during a meeting/discussion.
Your tasks
Your manager wants you to modify the form as detailed below.
Download the form from the Course website – it is in a basic Excel spreadsheet format that should be able to be read and edited in any spreadsheet application. You can use whichever application you prefer as long as the application can save in a standard excel format of .xls or .xlsx
This activity will explore your knowledge and skill in using a spreadsheet application.
Modify the form to add the Company’s name at the top. You are free to change the format, fonts, size or layout as you want. Save the completed file with a new name in excel format and upload with your submission
Hint: Your modifications can be as simple or as complex as you want.
Use the spreadsheet formula features to create formulae to automatically do the calculations in the form. The calculations are described on the form to undertake manually. Save the completed file with a new name in excel format and upload with your submission.
Hint: Search the App help on how to input a formula. You only need to use the basic calculation operations of + – / *. You will still input the estimated fees and LMI etc – you are just automating the result.
Demonstrate that your new spreadsheet is doing calculations correctly by using this data:
– Client name: Fred and Wilma Flintstone
– Property: 25 Rock St, Rocktown, 7000
– Purchase price: $425,000
– Stamp duty: $15,500
– Title Reg: $1,500
– Conveyancer cost: $ 700
– Home loan: $382,500
– Loan fees: $ 900
– LMI: $7,650 (which CAN be capitalised)
– No FHOG
Save with a new name (which includes the clients name) as a pdf and upload.
Hint: Check the formatting of all the cells for appearance as you will be giving this to your client. Are $ symbols and decimal points correct.
What software application did you use to create/modify the form and what type of equipment (device) did you use?
Hint: Name the App and the phone or laptop.
You will have a brief discussion with your manager about their requirements for the form. What questions could you ask to clarify format and style?
Hint: Also ask when required.
How and where would you store this document/file to avoid data loss/damage. How did you name the file?
Hint: Where should everything to do with each client be stored.
What help/information/google did you use to overcome basic difficulties with document design especially formula?
Hint: The App help or google?
Activity 4
Requirements and Objectives
Background
Harry Harris has approached you seeking a home loan to buy a home. You held a meeting with him in Module 1 Practical Activity 2 to discuss his Requirements and Objectives.
For this activity, you will need to download from the website these files:
– Harry Harris information sheet
– The Client Objectives and Requirements form you prepared in Mod 1
– Fact finder form
Your tasks
Mod 1 was just an introduction to the Requirements and Objectives procedure. In this activity you will explore this procedure in more detail.
Using the Harry Harris information sheet and any information you obtained from the meeting with him, complete the Fact finder form. You don’t need to complete all the cells and you can make up data if you want. Assume Harry has stated that his estimated Living Expenses are around $1,000 per month. Name the file “Harris H- fact finder’ or whatever name filing system you decide. Save as a pdf and upload.
Hint: You should decide your own file naming system.
Update the Clients Objectives and Requirements form if required in view of the latest information received. Make sure you complete the Summary. If you are missing any information, make your own assumptions to complete the form. Save as a pdf and upload.
Activity 5
Analysis of loan request
Background
You are continuing to work on the loan request from Harry Harris. You now have two forms completed:
– Harry Harris Fact finder
– Harry Harris Clients Objectives and Requirements
The next stage is to do some analysis of Harry’s request and prepare loan calculations.
For this activity download from the Course website:
– Qualifying Criteria
– Serviceability calculator- generic (this is an Excel spreadsheet)
– How much cash is required to buy a property. Either use the blank form downloaded or you can use the customised version you have completed in Practical activity 3 above.
Assume Harry is wanting to buy a standard residential house in suburban Melbourne. He may want to borrow up to 95% lvr. Using a blank ‘Qualifying criteria’ form, go through this checklist to see if anything about Harry’s situation indicates that 95%lvr may not be available. Tick each row as appropriate.
Record the max LVR applicable on the bottom section of the form. Also note any issues that may require further discussion or checking especially if you think 95% is not likely to be available.
The form can be completed in handwriting or on computer. Save or scan as a pdf for upload.
Hint: Make assumptions as you need too (in real life you would make phone calls to the client to clarify issues).
At this stage Harry hasn’t indicated the loan amount he wants – he wants to use his available cash to obtain the largest loan available (to buy in a suburb closer to the city). You will start by assessing the max loan based on LVR. To prepare basic analysis you need a starting ‘ballpark’ calculation.
Follow the procedure in sect 2.4.3 under ‘Purchase’ and ‘The max loan based on lvr’.
Using the LVR identified in question 1 above and the cash Harry has indicated on the information sheet, prepare calculations of:
– Max loan based on LVR
– Max purchase price based on LVR
Record your answers below.
Hint: Refer sect 2.4.3.
Now to look at Harry’s Borrowing Capacity. Download ‘Serviceability-generic’ and open in your spreadsheet app. On the ‘Report’ tab, input Harry’s data. For the loan amount, at this stage use the max loan based on lvr that you have calculated in question 2 above.
In the ‘Assessed Borrowing Capacity’ section of the calculation, note the results for:
– Max loan
– Net Surplus Ratio
Record these results as your answers below.
Hint: Refer sect 2.4.2 for help on Serviceability calculations.
Is it still satisfactory to proceed with the ballpark loan max amount based on lvr or should it be modified? Explain your answer and state the new max loan amount if you are recommending it be modified.
Hint: Refer to sect 2.4.2.
Open the Serviceability calculator again for Harry. Input the new loan amount you have just calculated in question 4 above. Round it DOWN to the nearest $1,000. The NSR should now be at least 1.00
Save the file with Harry’s name as an excel file and upload.
Calculate the new max property purchase price using the new loan amount from Q5 and 95%lvr.
Record your answer below.
Hint: Divide the loan amount by 0.95 and round down to the nearest $1,000.
The next step is to undertake some loan calculations for Harry’s loan request. Refer to the procedure in sect 2.4.3 for a Purchase. List below from the procedure, ‘the issues to consider’ and ‘the calculations to undertake’.
Hint: Don’t do any calculations yet – just list the items in the procedure.
Open the customised file you prepared ‘How much cash is required to buy a property’ in a spreadsheet app.
Your task is to complete this calculation sheet so you can report back to Harry on how much cash he will need to use for the purchase.
Assumptions:
– Purchase price as per your calculation in Q6 above
– New loan amount as per your calculation in Q5 above
– LMI cannot be capitalised for this loan example (most lenders won’t capitalise 95% lvr loans)
– No FHOG
– Make your own assumptions for Conveyancer and Building insurance
You will need to follow the procedure in sect 2.4.3 under ‘purchase’ and ‘government fees’ to calculate govt fees.
Similarly, follow the procedure in sect 2.4.3 to calculate estimated LMI.
Input this data to complete the calculation sheet.
Record below the ‘Net cash needed’ for Harry.
Also save a pdf for upload.
Hint: Refer sect 2.4.3.
Activity 6
Researching loan options
You have completed some loan calculations for Harry Harris and now have identified:
– Loan amount
– LVR
– Harry’s Requirements and Objectives
You are now ready to do some research of the lender/loan options for Harry. Download the template ‘Loan Options’ or you can design your own.
Refer to sect 2.5.3 for the Research loan options procedure.
Refer to the research loan options procedure and list the steps in the procedure. Create a document and name it ‘procedure to research loan options’. Save as a pdf for uploading.
Hint: You can just copy & paste – no need to put in your own words.
Following this procedure for Harry, you should be able to tick off the first four items as now complete (from your activities completed above). The next step is to prepare a ‘Loan Options’ table or list. Follow the steps 5 to 9 to prepare the Loan Options doc – you will be presenting this to Harry shortly. Save as a pdf for uploading.
Hint: Sect 2.5.3.
Activity 7
Preparing the Preliminary Assessment
From activities 1, 2 and 3 you will now have these completed docs and worksheets:
– Fact finder
– Clients Requirements and Objectives
– Qualifying Criteria checklist
– How much cash is required to buy a property
– Serviceability calculations
– Loan options list (with at least 3 loan options)
You are now in a position to do further analysis and a preliminary assessment. The purpose of this activity is to be ready for the second meeting with the client.
Download from the Course website ‘preliminary assessment’.
Select one of the loan options you have listed on your Loan Options table (the one you would recommend).
Your task is to prepare a Preliminary Assessment for presentation to Harry at the next meeting.
Use the template provided or create your own and make whatever assumptions necessary to complete.
Name the file and save as a pdf for uploading.
Hint: Sect 2.6 details how to prepare the preliminary assessment.
Activity 8
Present broking options to client
With activities 1 to 4, you have been putting together a range of documents and assessments. These are all for use or presentation at the second meeting with the client.
At the second meeting, the client is expecting that you will be reporting back on loan options. There are, however, several other actions for the broker to undertake in the meeting. In particular, you will be going through the docs you have been working on.
This activity involves role play. You will need a partner to play the role of the client – Harry Harris.
You are to video record the meeting.
Explain to your partner that you will be presenting loan options in the meeting and that they should ask whatever questions that are considered appropriate in relation to the documents you are presenting. Give your partner these documents prior to the meeting:
– H Harris information sheet
– H Harris further information
You will ask the client questions and your partner should respond as appropriate.
Hint: Video record on a smart phone is often easier but you may need to do several as most phones only record about 5mins at a time.
At the meeting, you will are expected to cover:
– Recap the Requirements and Objectives
– Explain and discuss:
– Qualifying criteria and the max LVR calculations
– Serviceability
– Your assessment of max loan and purchase price
– How much cash is required to buy the property
– Present the loan options
– Ask questions about Living Expenses
– Present and discuss your Preliminary Assessment
– Explain the next step which is for the client to decide on the loan they seek or to request you to do some more research. Ask the client for their decision on whether they want to proceed with a loan application.
During the meeting you are also expected to:
– Explain each suitable loan product option and its features in a clear and unambiguous way.
– Discuss the impact of each option clearly and comprehensively including benefits and risks.
– Explain fees, charges and commissions.
– Communicate any strategic or commercial relationship that the broker has with any lender.
– Identify and respond appropriately to client concerns, if any, and present alternatives when required.
– Support client to make an informed choice using relevant information and documentation presented.
– Obtain agreement to proceed with a loan option once any client concerns or issues are resolved.
– Negotiate and effectively gain commitment from client to proceed.
– Discuss and document implementation actions in anticipation of a loan application.
– Present documentation using logical structure in a range of formats suitable for the purpose.
– Use clear and concise language, terminology and concepts appropriate for the client.
– Use active listening and questioning techniques to convey and clarify information.
– Build rapport to establish and maintain an effective working relationship.
– Adapt personal communication style to show respect for the values, beliefs and cultural expectations of others.
– Carefully tailor communication style to impart information clearly and without ambiguity.
Activity 9
Preparing a Written Assessment
The second meeting with the client Harry Harris has now been completed. Harry has decided to proceed with the loan amount and loan option that you recommended.
At the second meeting you presented your preliminary assessment. The information obtained at the meeting and the decision(s) made by the client now need to be used to amend the preliminary assessment and convert it into the final Written Assessment.
Prepare a Written Assessment for Harry Harris using the Preliminary Assessment and any modifications necessary from discussions with Harry at the second meeting.
Save the finished product with the clients name and save as a pdf for uploading. Remember to change the title to ‘Written Assessment’.
Hint: Refer sect 2.8 and follow the procedure (which is basically to modify and rename the preliminary assessment into the written assessment).
Write an email to send to the client to confirm what was decided at the second meeting and attached your Written Assessment.
Activity 10
Prepare loan application
This activity explores the process of preparation of a loan application.
You will continue with the Harry Harris example and all the docs prepared up to now.
Before you start preparing a loan application, your task is to prepare a loan application checklist.
Refer to sect 2.9 and copy-paste the steps into a checklist format.
Save the finished product as a pdf for uploading.
Hint: Refer sect 2.9.
Download the ‘loan application supporting docs’ checklist. For Harry Harris, mark with a X each of the docs you want Harry to provide to support the loan application. Save/scan as a pdf for uploading.
Hint: Refer sect 2.9.
Harry has sent you the following supporting docs (download from the website):
– ID example H Harris
– Bank statement- H Harris
– Contract Note – H Harris
– Payslip example- H Harris 1
– Payslip example- H Harris 2
– Payment summary- H Harris
Are the docs satisfactory and in accordance with the supporting docs list you sent to Harry (in Q1 above)?
Hint: Refer sect 2.9.
Check you have all the necessary information to start the loan application. Collect/download for Harry Harris the following docs:
– Fact finder
– Harry Harris information sheet
– Harry Harris further information
Download the ‘application form- generic’ from the course website.
Commence filling in the application form. Refer to the above docs and to the supporting docs (Id, pay slips etc) that Harry has sent you as they will contain a lot of information needed for the application form.
Note any information that is missing.
Your task is to write an email to the client requesting answers to your questions seeking more information for the application form (the items missing).
Hint: Refer sect 2.9.
Do a Serviceability calculation. Use the Serviceability-generic calculator. Note that Harry has indicated he wants a loan of $400,000.
Firstly, calculate the income you will use in the calculator (and loan application). Refer to the Payslips and calculate the annual income before tax as this is the figure used in this calculator.
How did you calculate that figure and what is the annual income you have calculated?
Hint: Refer sect 2.4.2.
Complete the Serviceability calculation, save as a pdf for uploading.
Hint: Refer sect 2.9.
Calculate funds to complete for Harry based on a purchase price of $445,000 and loan of $400,000. You will need to update your cost estimates prepared earlier for the new figures.
Record your calculations for Funds to complete below.
Hint: Refer sect 2.9.4.
Write a brief summary of Harry’s loan application to explain to the lender what it’s about. Write your response below and also record it on the application form under ‘loan application background’.
Hint: Refer sect 2.9. Remember, keep it brief – it should only be 20 to 100 words.
Now finish the loan application. This can be either handwritten or typed using the generic form or any other lenders application form. Save as a pdf for uploading.
Hint: Refer sect 2.9.
You have finished preparing the loan application. Now it needs to be given to the client to check and sign.
Write an email to the client attaching the draft loan application. Ask the client to check the application for accuracy and if satisfactory, to sign the last page where indicated.
Hint: Refer sect 2.9.
You have now lodged the loan application with the lender. What are the next steps involved in the process up to the stage when the loan is unconditionally approved?
Hint: Refer sect 2.9.6.
After lodging the loan application, you have contacted the lender and found that the current queue for assessment is 4 to 5 days.
Write an email to the client advising that the application has been lodged and when to expect a response from the lender.
Hint: Refer sect 2.9.6 and remember that lenders don’t count weekend days.
You have received a Conditional Approval from the lender.
Who orders the Valuation?
Hint: Refer sect 2.9.6.
The loan is now Unconditionally Approved. Write an email to the client advising of this status and also what happens next.
Hint: Refer sect 2.9.6.
Estimate the appropriate time frame to complete these processes for the above activity:
-Assess supporting documentation
-Prepare loan application
-Lender assessment including queue time
Activity 11
Third Client Meeting
Harry Harris’s loan has been unconditionally approved. The loan offer docs have been mailed to the client and the lender emailed you a copy.
To prepare for the third meeting with the client, you need to familiarise yourself with the loan offer docs so you can explain them to the client.
Download the following example docs from the course website – these make up the ‘loan offer pack’ that was sent to the client.
– Loan offer docs example – H Harris
– Mortgage of land example
– DD example
– Bank loan offer documents list
– Lending terms and conditions
– Home mortgage consumer reference
– Key facts example
To prepare for the meeting, answer the following questions:
What is the loan amount?
Hint: Refer p 2 of Loan Offer under ‘1. Amount of credit’.
What is the interest rate?
Hint: Refer p 2 of Loan Offer under ‘2. Annual percentage rate’.
What are the loan repayments?
Hint: Refer p 2 of Loan Offer under ‘4. Repayments’.
Under ‘5. Fees and charges’ explain what ‘(a) Fees and charges definitely payable:’ means and what are the total fees and charges.
Under ‘5. Fees and charges’ explain what ‘(b) Fees and charges that may be payable:’ means.
Hint: These fees are only payable if certain things occur.
Explain the purpose of the Direct Debit Authority.
Hint: Sect 2.9.7.
Can the borrower change the DD frequency after settlement?
Explain briefly what the document ‘lending terms and conditions’ means.
Hint: You are explaining this to the client.
Explain briefly what the document ‘home mortgage consumer reference’ means.
Hint: You are explaining this to the client.
To prepare for the third meeting, describe the purpose of the meeting and what will be actioned.
Hint: Refer sect 2.9.7 for the 6 items ‘to do’ at the meeting.
During the previous conversations with the client, you noticed Harry appeared to have difficulty understanding finance terminology. This may come from his limited education or other circumstances.
Describe how you would adapt your explanations in the meeting to allow for Harry’s special needs.
You are now ready to hold the third meeting with the client Harry Harris.
This is a role play activity which you are to video record.
Arrange a role play partner and advise them to act as a typical consumer who is taking out a home loan for the first time. Give them the documents:
– H Harris information
– H Harris further information
They should assume they don’t know anything about home loans and can ask any questions about the docs or your explanations that they want.
Hint: Encourage your client to ask any questions they want and advise that there is no such thing as a ‘silly question’.
At the meeting, you will are expected to cover:
– Explaining the documentation (as per your answers to Q1 to 7 above).
– Collect the required docs at the end of the meeting as per the lenders list.
– Advise the client what happens next
During the meeting you are also expected to:
– Use language and concepts appropriate to the audience and purpose to convey and clarify information.
– Use questioning and active listening in verbal exchanges.
– Recognise and follow explicit and implicit protocols, legislative and ethical requirements.
– Select and use the appropriate conventions and protocols when communicating.
– Build rapport.
– Adapt personal communication style to show respect for the values, beliefs and cultural expectations of others.
– Tailor communication style to impart information clearly and without ambiguity.
Activity 12
Settle loan application
This activity explores the process of settlement of a loan application.
The Harry Harris loan has been fully approved and is due to settle soon.
Download the following docs to assist with this activity:
– Bank loan offer documents list
– Contract Note- H Harris
– DD example
– Key facts example
– Land transfer example
– Lending terms and conditions example
– Loan offer docs example
– Mortgage of land example
Before you start the process, your first task is to prepare a loan settlement checklist. Refer to sect 2.11.2 of the course book and copy-paste the steps into a checklist format document. Save the finished product as a pdf for uploading.
Hint: Refer sect 2.11.2.
You are preparing a set of loan offer documents to be sent to the borrower. List the docs that you would send to Harry Harris.
Hint: Refer sect 2.11.9 and ‘bank loan offer docs list’.
You are about to undertake a Title search. Describe the documents you could refer to for the Title Reference.
Hint: Refer sect 2.11.6.
What is the Title Reference for the property involved in the H Harris transaction?
Hint: Refer sect 2.11.9 and ‘Contract note- H Harris’.
The next three questions all relate to Titles searches. To gauge your understanding of the concepts, refer to the resource document ‘Title search example’. This is a different example to Harry Harris. You searched for a title with title reference Volume: 09574 and Folio: 429.
Now answer these next three questions about the Title search example doc.
Is there a mortgage listed on the title?
Hint: Refer sect 2.11.9.
Is there an Owners Corporation or Body Corporate involved?
Hint: Refer sect 2.11.9.
Who is the current owner of the property?
Hint: Refer sect 2.11.9.
Now return to the Harry Harris loan and downloaded docs.
Write an email to the lenders solicitor requesting they liaise with all parties and attend settlement
Hint: Refer sect 2.11.9.
Describe the checks you will undertake when the loan offer docs are returned from the borrower.
Hint: Refer sect 2.11.2.
Assume the returned loan offer docs are all in order. Write an email to all parties confirming that documentation and other pre-settlement issues are in order.
Hint: Refer sect 2.11.9.
Calculate the borrowers contribution for Harry Harris.
Assumptions:
– Loan = $400,000
– Purchase price = $ 445,000
– LMI = $12,298.24
– Settlement fee = $ 150
List how you undertook the calculation and the calculated borrowers contribution.
Hint: Refer sect 2.11.8 and resource docs.
Write an email to the borrowers conveyancer stating the borrowers contribution and explain how/when to pay.
Hint: Refer sect 2.11.8.
How much notice does a lender require to book settlement?
Hint: Refer sect 2.11.2.
Settlement has been completed.
Write an email to all parties confirming settlement and disbursement of funds.
Hint: Refer sect 2.11.2 and 2.11.9.
List the final steps in the settlement process once settlement has occurred.
Hint: Refer sect 2.11.2.
Refer to the document ‘loan offer docs example- H Harris’.
What security(s) are required to be used in the transaction and are there any conditions?
Hint: Refer to item 10 in loan contract.
Write an email to the Lender’s Solicitor to instruct them to:
-Lodge the Land Transfer and Mortgage of Land forms with the State Revenue Office for stamping of stamp duty.
-Lodge the Land Transfer and Mortgage of Land forms with the Titles Office to register ownership and the lenders financial interest.
Activity 13
Process credit applications
This activity explores the credit assessment process of loan applications.
Download the following documents to assist with this activity:
– Matilda home loans credit assessment procedure
– Genworth guidelines
– Mary Rose credit application summary
– Angus Anderson credit application summary
Before you start the process, your first task is to prepare a credit processing checklist. Refer to sect 2.10.1 of the Course book and copy-paste the steps into a checklist format. Save the finished product as a pdf for uploading.
Hint: Refer sect 2.10.1
Your task is to assess the credit application submitted by a broker for Mary Rose.
Refer to these docs:
– Mary Rose credit application summary
– Matilda home loans credit assessment procedures
The loan application has already had preliminary checks completed by the docs verification and validation officers. They have input all the application details into the lenders computer system and forwarded a summary to you for final assessment.
Go through the forms checking the credit application summary against the credit assessment criteria checklist.
Mark the ‘check if satisfies guidelines’ column with a ‘yes’ if satisfactory. If not, mark ‘No ‘ and make a comment below it as to why it is not satisfactory.
On completion, mark ‘X’ for your recommended action. Sign and date. Handwritten or typed are both acceptable.
Save as a pdf for uploading.
Write an email to the broker stating your decision.
Your task is to assess the credit application submitted by a broker for Angus Anderson.
Refer to these docs:
– Angus Anderson credit application summary
– Matilda home loans credit assessment procedures
The loan application has already had preliminary checks completed by the docs verification and validation officers. They have input all the application details into the lenders computer system and forwarded a summary to you for final assessment.
Go through the forms checking the credit application summary against the credit assessment criteria checklist.
Mark the ‘check if satisfies guidelines’ column with a ‘yes’ if satisfactory. If not, mark ‘No ‘ and make a comment below it as to why it is not satisfactory.
On completion, mark ‘X’ for your recommended action. Sign and date. Handwritten or typed are both acceptable.
Save as a pdf for uploading.
Write an email to the broker stating your decision.
The broker replies to your email requesting more details on why you have Declined the application.
Write an email to explain your decision.
Hint: From your decision in Q4 above there should be several reasons why you declined the loan.
If you weren’t sure about declining the loan, who could you have referred too for confirmation.
Hint: Refer sect 2.10.6
Write an email to that officer referring the credit application for review. Detail the issues of concern.
Before you submit: checklist
Remember, this assessment requires you to upload and submit more than one document. Here’s a checklist for your reference.
This Word document, with all answer boxes filled in
Activity 1 Q 1
Activity 2 Q 1
Activity 3 Q 1
Activity 3 Q 2
Activity 3 Q 3
Activity 4 Q 1
Activity 4 Q 2
Activity 5 Q 5
Activity 5 Q 8
Activity 6 Q 1
Activity 6 Q 2
Activity 7 Q 1
Activity 9 Q 1
Activity 10 Q 1
Activity 10 Q 2
Activity 10 Q 6
Activity 10 Q 9
Activity 12 Q 1
Activity 13 Q 1
Activity 13 Q 2
Activity 13 Q 4

QUALITY: 100% ORIGINAL PAPERNO PLAGIARISM – CUSTOM PAPER