Reference no: EM132588042

FNSFMB401 Prepare loan application on behalf of finance or mortgage broking clients

Assessment Task 1:

1. What are the key features of Schedule 1 of the National Consumer Credit Protection Act 2009?

2. What legislation gives ASIC power to approve financial services sector codes of conduct?

3. Describe the key features of the Australian Bankers' Association Code of Banking Practice.

4. Explain the purpose and contents of the following lender forms

a. Home Loan Application Form

b. Identification form

5. Describe the information on assets and liabilities that is required to support a loan application

6. Describe the information on income and expenses that is required to support a loan application

7. Describe the features of each stage of the loan settlement processes

8. What are the key features of loan management?

9. When do valuers assess the value of a property (or other types of security)?

10. Explain lender requirements for loan applications and securing a loan

11. Give three types of security that may be required by lenders.

Assessment Task 2: Loan application project

Task summary
You are required to complete and submit a loan application on behalf of a client. This assessment is to be completed in the simulated work environment in the RTO.

Required
• Access to textbooks/other learning materials
• Computer with Microsoft Office and internet access
• Client Information
• Completed Fact Find
• Fees and Charges
• ANZ Home Loan Application Form

Instructions

Carefully read the following:

You are working as a Mortgage Broker at Morgan Mortgages, and you have been assigned a new client. Joan Stamp has received an inheritance and has decided to purchase an investment property with it. She has a two-year old daughter, who is taken care of full-time by her father, Juan.
She has found a property nearby that she is interested in. It is on the market for $450,000, and she has a cash deposit of $300,000.
Joan was going to go to her bank, but a friend recommended Morgan Mortgages could find them a better deal than at their bank. She has discussed the project over the telephone with one of Morgan Mortgages' brokers, who completed a Fact Find. The broker discussed the options with the client, and it was decided that an ANZ Standard Variable Loan over 30 years with an offset account would be the most appropriate loan for Ms Stamp. Ms Stamp has agreed to this over the phone and has asked that the loan be paid off over a twenty-year period.
You are required to fill out the loan application and then hold a meeting with the client to gain her approval and signature before you submit the application.

1. Prepare the loan application.
Review the case study, the Completed Fact Find and the National Credit Code
Read through the ANZ Home Loan Application Form.
Ensure that you have all of the information needed to support the loan application in accordance with National Credit Code.
Research and calculate every aspect of the loan for the client, including the amount, the term, interest rate as well as the associated fees and charges. Enter these into Fees and Charges. You may calculate the stamp duty for NSW, as this is given as the case study client's address, or you may calculate it for the state where your RTO is situated, but you must make this clear in the document.
When you have entered the relevant data, save this as Completed Fees and Charges.
Ensure also, that you are familiar with the lender requirements for client identification, so you can be sure that the client can satisfy this.
Enter the data you have into the ANZ Home Loan Application Form.
Make a note of any additional data that you will need to complete the form. You can ask for this at the interview.

2. Meet with the client (your assessor)
You are required to conduct an interview with the client to ensure that the information in the loan application is correct and to gain their approval to lodge the application.
Describe the requirements and characteristics of the loan to the client, including the amount, the term, interest rate as well as the associated fees and charges.
Ask the client to provide the data that you still need to complete the loan application. Ensure that the figures that you enter accurately reflect the client's financial situation and personal information.
You will also need to get a copy of the client's identification documents.

Inform the client of the expected timeline for the response from the lender.
During the meeting, you are required to demonstrate effective communication skills including:
• Speaking clearly and concisely
• Using non-verbal communication to assist with understanding
• Asking questions to identify required information
• Responding to questions as required
• Using active listening techniques to confirm understanding
When you have filled out the application form, inform the client where they should sign and date the document.
Check the document for accuracy and save it as Completed Home Loan Application.

3. Send an email to the lender (your assessor.)
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachment and ask them to contact you with the approval or non-approval.

Attach your Completed Home Loan Application and Completed Fees and Charges to the email. It is important that the client's information is sent in a manner that protects client confidentiality, and this should be reflected in the email.

4. Send an email to the client (your assessor).
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
It should introduce and summarise the approving officer's question.

The email text should ask the client for the additional information requested by the lender to support the loan application.

5. Submit documentation to the lender
Forward the client's email to the approving officer (your assessor) in a manner that protects client confidentiality.

6. Send an email to the client (your assessor).
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
It should inform the client that their loan application has been approved.

Provide clear and accurate information to the client on how they should proceed now that the loan has been approved.
Find a property within the conditional approved values and get back to me

Attachment:- mortgage broking clients.rar