Reference no: EM132534378

Part 1:

(a) Leading credit providers and other financial organisations have code of ethics, sometime called codes of conduct. Select one of them and summarise it by itemising its main principles.

(b) It is important to keep up to date with compliance requirements so that the required changes can be made to organization procedures and product offerings. Suggest three sources that you can use.

(d) How is client service commonly monitored in your organisation? What are the two possible outcomes?

(a) How could you prepare yourself to deal with client concerns?

(b) Give examples of the following legal breaches: breach of the duty of care, false and misleading conduct, unconscionable conduct & conflict of interest without disclosure. Put some real life examples after the explanations

(c) What are the procedures for dealing with client complaints in your organisation?

Part 2:

(a) Briefly indicate the environmental protection assistance that your business organization is able to receive from your State(NSW) or Territory environment protection agency.

Part 3:

(a) What needs to be demonstrated at the outset in a client relationship? When is appropriate to demonstrate competence?

(b) Explain the importance of a code of ethics in the relationship between a professional and clients.

(c) Drawing on your own experience or the experience of a more experienced colleague or manager, describe a situation where a need was identified to use language and concepts appropriate to cultural differences. How was the need met?

Part 4:

(a) List two others type of professional your organization uses to develop client relationships andindicate in each case how it is able to provide them with a benefit in the relationship.

Task: Prepare a loan application on behalf of mortgage broking clients

Case Study - Evaluating and processing a loan application

Read the following case study then answer the questions that follow.

Ross and MelissaCooperarea young couple who have been married for five years, during which they have been renting an apartment while saving to buy an apartment of their own. They do not have any children at this stage.
After some months searching, they have found a small two-bedroom apartment that suits their needs. The purchase cost of the property is $480,000, and they have provided a deposit of $60,000. You are recommending a standard variable loan.

Ross has been working at Gaines Consulting Pty Ltd. for 12 years and has a salary of $80,000. Melissa has been working at Jackson Equipment Hire Pty Ltd for 8 years and has a salary of $70,000. Neither has had previous employment, apart from casual work when they were younger.
The full details of Ross and Melissa that you have collected are attached below:

Task 7.1.

Apart from requiring the presentation of a Credit Guide, the NCCP Act says nothing about what a mortgage broker should say about him/herself at the beginning of a client interview. In the space below, make a few brief points about what you would say about yourself and your firm at this stage. Remember that at the outside the client is primarily looking for assurance that the broker is concerned about them and their interests.

Task 7.4.
Mortgage brokers should present adequate information to clients to enable them to make a choice between loans. This involves conducting research to determine suitable loans and presenting clients with a choice among, say, three loans that are considered to be suitable for the client's requirements. The characteristics of the three selected loans are then presented to clients in a way that allows a comparison to be made. The presentation may be made a piece of paper, or other means such as a Powerpoint overhead.

You are now required to use the internet or other sources to choose three loans from banks in AUSTRALIA that you believe will meet the requirements of Ross and Melissa. The relevant details should be placed in the spaces provided.

Task 7.5 (a)
Explain significant features of the loan products that you have chosen in words that the client would understand. Your answer should be restricted to features relevant to the clients.

Task 7.5 (b)
Credit providers always have other fees and charges beyond their stated interest rates. Select one of the best loans you have set out in Task 7.4 as the one preferred by Ross and Melinda, and explain any additional fees and charges in a manner that your clients can understand.

a) Capacity
(i) What will the applicants' monthly payment be, given the current variable lending rate of 6% p.a.? (Hint: visit a website
(ii) Using the ‘income percentage method', assess the applicants' capacity to repay the loan (25 words)

b) Collateral
(i) Assuming the valuation placed on the property is $480,000, calculate the loan to valuation ratio (LVR).
(ii) Given the LVR that you have calculated, what steps might the bank take to protect its position? (25 words)

c) Conditions
Using the information that has been presented, identify any ‘conditions' that might impact on this loan application. How should they be handled?

Task 8.3.
Sometimes additional support, such as a third party guarantee is required in housing loans. Indicate when such support may be required and the matters about which the credit provider should seek to be satisfied. How is the required evidence about those matters normally obtained?

Attachment:- Finanace and Mortgage Broking.rar