Mortgage Broking
FBP: Chapter 6
Finance Broking
in
Practice
(FBP)
Student
Assessment Booklet
Name:
Date:
Manual Version Number:
International Institute of Technology 1 VR390718
Please note: It is a requirement for students to make their submissions using this electronic assessment booklet. At the facilitators discretion any submissions made in another format may not be accepted. If you are completing the course via various computers, please save the one booklet on a USB so you can send the submission in using the one file
Getting Started
Please insert your NAME, DATE and the Manual Version Number on the first page of your Assessment Booklet.
Answering Assessment Questions
Each Assessment Booklet contains blank spaces for following assessment items:
Short Answer Questions
When submitting Assessment Booklets for marking, please ensure that the entire booklet is completed.
Short Answer Questions
Using the space/s provided, please complete your answers making sure to:
Please restrict your answers to no more than 300 words per question
Please include any calculations that you used to reach your answer
Referencing Your Answers
Students undertakingthecourse must exhibit a range of skills in order to be confirmed as competent in their course. These skills include:
Understanding a question.
Possessing knowledge about the issue, which in some assessments includes locating information from references.
Providing an answer, this showspersonalunderstanding.
Pleasemake sure that all assessments aredocumented in a way that exhibitsyour personal study and/or research.To that end would you pleaseacknowledge all material and sources used in the presentationof your assessment whether they are books, articles, reports,Internet searches, or any other document or personalcommunication. For exampleif:
An idea is sourced;reference it e.g. (Bagra2010).
You are directly quoting,wrap it in quote marks e.g.Tom Horner sat in a corner (Peters 2007 page 7).
You are quoting from the internet include quote marksand the web referencee.g. ban on conflicted remuneration structures including commissions
Please note that no more than 5% of direct quoting which is referenced is deemedto be acceptable and no amount of direct quoting withoutreferencing isdeemedacceptable. Any direct quoting should form only asmall portion of any answer and the answer should demonstratethe student understands and can interpret the question andprovide an appropriate answer.
Whilst this will require more work for you I hope you will understand that we are trying to maintain high standards and support your progression into further qualifications.
Document Naming Instructions:
Save this file to your computer and please use the following protocol when naming the file:
SUBMISSION this relates to the number of times the file has been submitted. For example, your first submission would be S1, with any re-submission the file name should be recorded S2.
Note:
If you are submitting handwritten assessments all questions must be completed in blue or black pen. If assessments are received in pencil or with illegible handwriting, a resubmission will be required.
Note:
It is your responsibility as a student to keep a copy of all assessment submissions. IIT do not take responsibility for the loss of any submissions.
Distance Education Students
Student Declaration
I understand that by completing this form I am bound by the following declaration.
To the best of my knowledge and belief, no part of this assignment for the above unit has been copied from any other students work or from any other source except where due acknowledgment is made in the text, or has been written for me by another person.
Name: Date:
FBP: Chapter 6
International Institute of Technology 7 VR261018
Short Answer Question 1
What is involved in preparing a loan application?
Short Answer Question 2
Describe the 5 Cs of establishing credit worthiness?
Short Answer Question 3
Briefly explain the loan-to-value ratio.
Short Answer Question 4
What factors affect the loan price?
Short Answer Question 5
What is the difference between pre-approval and pre-qualification? Chapter 5 Understanding Loan Products
Finance Broking
in
Practice
(FBP)
Student
Assessment Booklet
Name:
Date:
Manual Version Number:
International Institute of Technology 1 VR240919
Please note: It is a requirement for students to make their submissions using this electronic assessment booklet. At the facilitators discretion any submissions made in another format may not be accepted. If you are completing the course via various computers, please save the one booklet on a USB so you can send the submission in using the one file
Getting Started
Please insert your NAME, DATE and the Manual Version Number on the first page of your Assessment Booklet.
Answering Assessment Questions
Each Assessment Booklet contains blank spaces for following assessment items:
Short Answer Questions
When submitting Assessment Booklets for marking, please ensure that the entire booklet is completed.
Short Answer Questions
Using the space/s provided, please complete your answers making sure to:
Please restrict your answers to no more than 300 words per question
Please include any calculations that you used to reach your answer
Referencing Your Answers
Students undertakingthecourse must exhibit a range of skills in order to be confirmed as competent in their course. These skills include:
Understanding a question.
Possessing knowledge about the issue, which in some assessments includes locating information from references.
Providing an answer, this showspersonalunderstanding.
Pleasemake sure that all assessments aredocumented in a way that exhibitsyour personal study and/or research.To that end would you pleaseacknowledge all material and sources used in the presentationof your assessment whether they are books, articles, reports,Internet searches, or any other document or personalcommunication. For exampleif:
An idea is sourced;reference it e.g. (Bagra2010).
You are directly quoting,wrap it in quote marks e.g.Tom Horner sat in a corner (Peters 2007 page 7).
You are quoting from the internet include quote marksand the web referencee.g. ban on conflicted remuneration structures including commissions
Please note that no more than 5% of direct quoting which is referenced is deemedto be acceptable and no amount of direct quoting withoutreferencing isdeemedacceptable. Any direct quoting should form only asmall portion of any answer and the answer should demonstratethe student understands and can interpret the question andprovide an appropriate answer.
Whilst this will require more work for you I hope you will understand that we are trying to maintain high standards and support your progression into further qualifications.
Document Naming Instructions:
Save this file to your computer and please use the following protocol when naming the file:
SUBMISSION this relates to the number of times the file has been submitted. For example, your first submission would be S1, with any re-submission the file name should be recorded S2.
Note:
If you are submitting handwritten assessments all questions must be completed in blue or black pen. If assessments are received in pencil or with illegible handwriting, a resubmission will be required.
Note:
It is your responsibility as a student to keep a copy of all assessment submissions. IIT do not take responsibility for the loss of any submissions.
Distance Education Students
Student Declaration
I understand that by completing this form I am bound by the following declaration.
To the best of my knowledge and belief, no part of this assignment for the above unit has been copied from any other students work or from any other source except where due acknowledgment is made in the text, or has been written for me by another person.
Name: Date:
FBP: Chapter 5
International Institute of Technology 9 VR240919
Short Answer Question 1
First Home Owner Grants and Stamp Duty concessions are State and Territory Based and are subject to constant change. For the State or Territory you live in confirm that the details in the book are consistent with the most current First Home Owner Grants and Stamp Duty exemptions quoting the website address and date you accessed it. If the details have changed document the changes.
Short Answer Question 2
Explain to your client what a 100% loan is?
Short Answer Question 3
Briefly explain split and blended loans.
Short Answer Question 4
(a) Briefly explain a line of credit loan.
(b) What is an interest only loan?
Short Answer Question 5
You begin work at your new place of employment. One of your key responsibilities is to process applications for credit. Your new manager, Robson Mischkulnig, is aware of your background as a mortgage broker and wants to draw upon your existing knowledge base. As such, he asks you to bring in the last credit application you managed to help train you into your new role.
Equipped with Basil and Daisys application, you begin one week of induction. You are given a copy of the Sample Credit Policies and Procedures Manual, and told these are the guidelines that inform you day to day decision making. Supplementing the manual are other protocols and laws such as the National Credit Act. You are told that in this office, decisions to reject or accept an application are formed on the basis of two criteria; credit policy and the total credit assessment which you should conduct. Any decisions to advance funds or extend credit that fall outside your approval or limits of authority must be referred to relevant approving personnel. In your case, this is Robson. You are expected to prepare and forward your recommendations to accept or reject applications to Robson promptly and in accordance with the organisations procedures. Of course, any required security must also be attached. Your trainer emphasises another key responsibility for those providing credit and credit reporting services. That is to keep the records system up to date. This means recording and monitoring file and record movements as well as maintaining the records according to legislative requirements and organisational policies and procedures.
Having worked through the essentials, your trainer throws you in the deep end and asks you to follow the procedures and process the sample credit application you brought with you. To test whether you are competent, you are given the following questions to complete.
(a) Under what circumstances would you be expected to refer your decision to Robson?
(b) Provide financial and legal reasons including the security used to justify your decision and present them in a format that Robson can use to review your decision.
(c) Refer to the So Sweet client record prepared in Chapter 4 short answer 5cii. Copy and paste the client record and call it Updated Client record and update the client database with Basil and Daisys details from a to b above (specifically referring to the justification for approval based on their financial and legal reasons, and the security used). Highlight the changes so that these are clearly evident in the Updated Client record.
(d) Outline the steps you would take to monitor file and record movements.
International Institute of Technology
1
VR240919
Finance Broking
i
n
Practice
(FBP)
Student
Assessment Booklet
Name
:
Date
:
Manual Version Number:
International Institute of Technology 1 VR240919
Finance Broking
in
Practice
(FBP)
Student
Assessment Booklet
Name:
Date:
Manual Version Number: FBP: Chapter 4
Finance Broking
in
Practice
(FBP)
Student
Assessment Booklet
Name:
Date:
Manual Version Number:
International Institute of Technology 1 VR390718
Please note: It is a requirement for students to make their submissions using this electronic assessment booklet. At the facilitators discretion any submissions made in another format may not be accepted. If you are completing the course via various computers, please save the one booklet on a USB so you can send the submission in using the one file
Getting Started
Please insert your NAME, DATE and the Manual Version Number on the first page of your Assessment Booklet.
Answering Assessment Questions
Each Assessment Booklet contains blank spaces for following assessment items:
Short Answer Questions
When submitting Assessment Booklets for marking, please ensure that the entire booklet is completed.
Short Answer Questions
Using the space/s provided, please complete your answers making sure to:
Please restrict your answers to no more than 300 words per question
Please include any calculations that you used to reach your answer
Referencing Your Answers
Students undertakingthecourse must exhibit a range of skills in order to be confirmed as competent in their course. These skills include:
Understanding a question.
Possessing knowledge about the issue, which in some assessments includes locating information from references.
Providing an answer, this showspersonalunderstanding.
Pleasemake sure that all assessments aredocumented in a way that exhibitsyour personal study and/or research.To that end would you pleaseacknowledge all material and sources used in the presentationof your assessment whether they are books, articles, reports,Internet searches, or any other document or personalcommunication. For exampleif:
An idea is sourced;reference it e.g. (Bagra2010).
You are directly quoting,wrap it in quote marks e.g.Tom Horner sat in a corner (Peters 2007 page 7).
You are quoting from the internet include quote marksand the web referencee.g. ban on conflicted remuneration structures including commissions
Please note that no more than 5% of direct quoting which is referenced is deemedto be acceptable and no amount of direct quoting withoutreferencing isdeemedacceptable. Any direct quoting should form only asmall portion of any answer and the answer should demonstratethe student understands and can interpret the question andprovide an appropriate answer.
Whilst this will require more work for you I hope you will understand that we are trying to maintain high standards and support your progression into further qualifications.
Document Naming Instructions:
Save this file to your computer and please use the following protocol when naming the file:
SUBMISSION this relates to the number of times the file has been submitted. For example, your first submission would be S1, with any re-submission the file name should be recorded S2.
Note:
If you are submitting handwritten assessments all questions must be completed in blue or black pen. If assessments are received in pencil or with illegible handwriting, a resubmission will be required.
Note:
It is your responsibility as a student to keep a copy of all assessment submissions. IIT do not take responsibility for the loss of any submissions.
Distance Education Students
Student Declaration
I understand that by completing this form I am bound by the following declaration.
To the best of my knowledge and belief, no part of this assignment for the above unit has been copied from any other students work or from any other source except where due acknowledgment is made in the text, or has been written for me by another person.
Name: Date:
FBP: Chapter 4
International Institute of Technology 13 VR261018
Short Answer Question 1
You had recommended a variable interest rate product with an offset account to your client and they emailed you and said they did not want to take up the product as it was too expensive. A cheaper product exists but you believe it doesnt meet their needs as it does not have the features they need. Write an email in response (referred to a sales response) designed to overcome their reluctance. Ensure you sign off with your name and provide your mobile phone so they can contact you.
Short Answer Question 2
(a) Which software applications would you use to calculate a clients financial position?
(b) All brokers are required to pass the So Sweet credit guide to their clients. Devise an item on an audit program to prove she does it.
(c) So Sweet requires all new brokers to email a summary of their efforts each week to their mentor. Devise an internal monitoring program to ensure they do it.
(d) Keeping up with new regulations is vital. Devise a mechanism to ensure the currency of regulatory literature is distributed in a timely fashion in accordance with organisational policy.
(e) How would you ensure operational procedure is updated to reflect changes to regulation and legislation, including the identification of implications for product and services?
(f) Research and calculate the cost of implementing triple bottom line principles in an office with no eco policies.
(g) Via email ask if any staff would like to undertake the triple bottom line implementation process as a business opportunity.
Short Answer Question 3
Under the laws of agency, when can a finance broker act as a limited agent of a credit provider?
Short Answer Question 4
(a) Prospecting is a continuous process of gathering the names of potential buyers who are likely to be interested in purchasing the broker’s product. Select one business or professional contact e.g. brokers, business associates and associations and one person from your personal network e.g. friends and family and detail how you will contact them by using a technique from the list below or other technique:
advertisements
databases
direct mail
internal company referral systems
networking groups and events
referrals
telemarketing.
(b) You have contacted a person and have spoken to them using one of the techniques above. How would you develop and cultivate the relationship, in order to market to them and benefit the organisation, in an agreed upon timeframe?
(c) How would you cooperate with other professionals and third parties to expand and enhance the reputation of the organisation and to identify new and improved business practices?
(d) Once you get a referral how would you follow them up to secure the new business relationship?
(e) What (i) media (ii) marketing and (iii) public relations tools would you use for your business?
(i)
(ii)
(iii)
(f) The text states that sales Techniques involve looking at things from the point of view of the prospective client and understanding buyer motives. Identify three potential buyers motives and discuss how you would tailor your approach to each.
Short Answer Question 5
Pleased with the way you handled his complaint, Bob recommends you to his 45 year old son, Basil. Basil Butler is a management consultant who is living and working with his wife Daisy in Manhattan. Basil sends you an email, explaining that his 41 year old wife is expecting triplets in six months time. They plan to return to Melbourne next month and take up residence in their old warehouse apartment in Fitzroy. They need urgent help because their neighbour is planning to sell her adjoining apartment, which they wish to secure. Daisy loves her old place and dreams of extending their living space by acquiring and renovating the neighbours apartment. She envisions demolishing part of the shared wall to join the two apartments into one large, liveable space for a family of five.
Basils firm is relocating him to the Collins Street office. Daisy, however, is a contractor who has successfully completed a series of projects for Basils firm. She has been self-employed for 10 years and does not intend to work for the next five years. Basil earns $200,000 p.a. and Daisy earns $130,000. They owe $280,000 on the Fitzroy apartment, but they own a beach house in Portsea outright. The beach house is valued at $650,000. With a penchant for luxury cars, they also have $60,000 to repay on their BMW and $10,000 on the vintage MG. They have put the majority of Daisys earnings into her superannuation fund, which has now accrued $400,000. Basil is unsure how much is in his superannuation fund. Sadly, they invested the bulk of Basils earnings in a share portfolio which crashed with the global financial crisis. The portfolio dividends only paid $5,000 last financial year. Together, they have $127,000 in a savings account and $50,000 invested in a long-term deposit. The reserve price on the neighbours property is $510,000, however, she is prepared to sell it for $495,500 if she does not need to engage a real estate agent and if they will commit to a 30 day settlement. She has given Basil and Daisy the option of a private sale and two weeks in which to make her an offer. As she is divorcing, she is not prepared to extend the time to allow Basil and Daisy to secure finance in Melbourne in person.
Basil and Daisy are too busy packing up their Manhattan loft to search for finance options. They want you to find a suitable loan with attractive terms and arrange all the necessary paperwork. Timing is their utmost concern.
(a) Respond to Basils email by taking the following steps:
i. Analyse Basil and Daisys financial position based on the extent of their disclosures. Use a financial calculator or relevant software systems to help calculate their personal and financial situation. Note good calculators can be found online e.g.
https://www.genworth.com.au/lender/lmi-tools/serviceability-calculator
https://mozo.com.au/home-loans or http://www.loansense.com.au/calculator/loan-payment.html
ii. Outline the relevant processes for proper execution of loan documentation and determine whether you will be able to implement the necessary actions within the neighbours timeframe. Also note whether there is any need for specialist advice or involvement from other main sectors of the financial services industry in this case.
iii. Describe how you will submit the documentation to the appropriate lender in an appropriate manner to protect client confidentiality.
iv. Research products and additional industry information, then apply your industry knowledge to the current situation. Synthesise this information into a clear and concise format (e.g. short report or proposal) so that Basil and Daisy can make an informed decision.
v. Write an email to Basil and Daisy to establish and confirm their priorities:
Establishing their risk tolerance and determining their investment goals and expectations.
Ask for any additional information you require to complete your analysis in accordance with your firms credit policy.
Provide Basil and Daisy with an overview of the three best products you believe are most suited to their needs. Be sure to discuss the strengths, weaknesses, benefits and risks, fees and charges attached to each product.
(b) Write a confirmation email to Basil outlining the following:
Basic requirements of the loan, including the amount, term and interest rate.
Disclose whether you have a strategic and commercial relationship to the recommended product.
Outline which documents you have attached as per compliance requirements.
Describe the appropriate timing of events in the loan approval process. Check your writing for accuracy and readability.
(c)
i. Download and complete the loan documentation (this is found in your IIT elearning platform supporting documents) Basil and Daisy require in a way that accurately reflects their financial situation, personal information and complies with lender requirements and guidelines.
ii. Copy and paste the Loan Application into sheet 2. Name sheet 1 Loan application and sheet 2 Client records. Create a client record in an appropriate format which will be accessible to other appropriate advisers. You wont need all of the loan application you copied so cut the redundant details out and dont forget to change the heading from Loan Application to the Client Record. Hint: in chapter 5 short answer question 5d you are required to copy and paste the client record you just created and update it with the case study details in chapter 5. You might find it efficient to do this while you are dealing with this question.
iii. Describe how you are going to prevent fraud and verify Basils and Daisys identity/signature and their other undertakings when you are not able to meet them person. Chapter 3 Legislative and Regulatory Frameworks
Chapter 3 Legislative and Regulatory Frameworks
Finance Broking
in
Practice
(FBP)
Student
Assessment Booklet
Name:
Date:
Manual Version Number:
International Institute of Technology 1 VR240919
Please note: It is a requirement for students to make their submissions using this electronic assessment booklet. At the facilitators discretion any submissions made in another format may not be accepted. If you are completing the course via various computers, please save the one booklet on a USB so you can send the submission in using the one file
Getting Started
Please insert your NAME, DATE and the Manual Version Number on the first page of your Assessment Booklet.
Answering Assessment Questions
Each Assessment Booklet contains blank spaces for following assessment items:
Short Answer Questions
When submitting Assessment Booklets for marking, please ensure that the entire booklet is completed.
Short Answer Questions
Using the space/s provided, please complete your answers making sure to:
Please restrict your answers to no more than 300 words per question
Please include any calculations that you used to reach your answer
Referencing Your Answers
Students undertakingthecourse must exhibit a range of skills in order to be confirmed as competent in their course. These skills include:
Understanding a question.
Possessing knowledge about the issue, which in some assessments includes locating information from references.
Providing an answer, this showspersonalunderstanding.
Pleasemake sure that all assessments aredocumented in a way that exhibitsyour personal study and/or research.To that end would you pleaseacknowledge all material and sources used in the presentationof your assessment whether they are books, articles, reports,Internet searches, or any other document or personalcommunication. For exampleif:
An idea is sourced;reference it e.g. (Bagra2010).
You are directly quoting,wrap it in quote marks e.g.Tom Horner sat in a corner (Peters 2007 page 7).
You are quoting from the internet include quote marksand the web referencee.g. ban on conflicted remuneration structures including commissions
Please note that no more than 5% of direct quoting which is referenced is deemedto be acceptable and no amount of direct quoting withoutreferencing isdeemedacceptable. Any direct quoting should form only asmall portion of any answer and the answer should demonstratethe student understands and can interpret the question andprovide an appropriate answer.
Whilst this will require more work for you I hope you will understand that we are trying to maintain high standards and support your progression into further qualifications.
Document Naming Instructions:
Save this file to your computer and please use the following protocol when naming the file:
SUBMISSION this relates to the number of times the file has been submitted. For example, your first submission would be S1, with any re-submission the file name should be recorded S2.
Note:
If you are submitting handwritten assessments all questions must be completed in blue or black pen. If assessments are received in pencil or with illegible handwriting, a resubmission will be required.
Note:
It is your responsibility as a student to keep a copy of all assessment submissions. IIT do not take responsibility for the loss of any submissions.
Distance Education Students
Student Declaration
I understand that by completing this form I am bound by the following declaration.
To the best of my knowledge and belief, no part of this assignment for the above unit has been copied from any other students work or from any other source except where due acknowledgment is made in the text, or has been written for me by another person.
Name: Date:
FBP: Chapter 3
International Institute of Technology 9 VR240919
Short Answer Question 1
(a) Which sort of loans does the National Credit Code cover?
(b) What evidence would So Sweet as a holder of an Australian Credit License be required to prove the following?
Maintaining Australian Credit License
Authorisations with aggregator.
Mortgage brokers must complete their Continuing Professional Development points 2 months before the professional bodys due date. Note: So Sweet keep training records.
Audit loan documentation.
(c) What would you do to implement an audit of loan documentation for staff and authority holders?
(d) What statutory records does a financial services organisation need to maintain?
Short Answer Question 2
(a) How can a mortgage broker avoid perpetrating unconscionable conduct?
(b) What are the most common client complaints?
Short Answer Question 3
You as part of a team have been requested by So Sweet to produce a Credit Guide. Your role is to emulate the credit guide which is located on the elearning platform under supporting documents called Student Credit Guide Assistance.
You must use your own address and phone number as the office address and number and your date of birth as the Australian Credit Licence Number i.e. ddmmyy.
Include a footer to show where the document is stored electronically. The document should be named so that the content and author are easily identifiable.
Use the following Style Guide to prepare the Credit Guide
Style Guide
Fonts
Heading 1 Main headings Calibri 16pt, Bold
Heading 2 Sub-headings Calibri 11pt, Bold
Normal Normal text Calibri 12 pt. at 1.15 spacing
Signature – Lucida Handwriting 16 pt.
Letters
Date format Write the date number in digits, the name of the month in words and the year in digits, for example 21st August 2009 not 21.8.2009
When writing numbers in a paragraph or letter From zero to nine, use words rather than digits and from 10 and above use the numbers themselves.
Colour Unless otherwise directed, do not use colour or highlighting.
Numbers style is Arabic 1, 2, 3.
Bullet Style as used in this document
Spaces after full stops or other punctuation marks – Leave only one space.
Letter Margins – must be 3.5 cm on both sides.
Indents Do not use indents and apply block formatting to all documents.
Paragraph spacing Set to add space before and after each paragraph.
Text spacing – All text spaced at 1.15
Short Answer Question 4
(a) Briefly explain the most common types of frauds perpetrated in the mortgage industry?
(b) If a client perpetuates fraud, will the mortgage broker be liable?
Short Answer Question 5
One afternoon, Millicent asks if you would help with a client. She introduces you to Bob Butler who is one of Yings clients and then leaves. You invite Bob to sit down and ask him how you can help. Bob, who is 80 years old, launches into a tirade. You are able to move past his emotion and begin to determine whether there are genuine causes for what appears to be a pressing complaint. Firstly, according to Bob, Ying has failed to return his phone calls for the past two weeks. This means that Bob has been experiencing great difficulty in obtaining a refund of the brokerage fee. Bob wants
