FNSSAM413 - Short Answer Questions v1.1

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Feb 20, 2024

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FNSSAM413 - Identify and provide initial information to potential new clients (Release 1) Short Answer Questions Short Answer Questions Page 1 of 7 © Real Estate Academy Australia RTO 32436 Version 1.0 – August 2022

FNSSAM413 - Identify and provide initial information to potential new clients (Release 1) Short Answer Questions What you need to do: Answer the questions below by writing in the space provided. You are required to answer all questions correctly. If correct, you will see ‘Satisfactory’ or if incorrect you will see ‘Not Satisfactory’ in your grades section of your learner portal next to the assessment name. The assessor will provide feedback and a Record of Results in the assessment task once graded. You will be required to resubmit your work for any ‘Not Satisfactory’ assessment tasks. What you will need: Use the learner material provided in your online student portal as well as research materials such as books, internet, magazines, workplace documentation etc. to assist you in gaining the knowledge required to answer the questions. Remember that the assessment is self-paced and open book, so you can use whichever resources you have to answer the questions. What you need to submit: Your completed Short Answer Questions. How to Submit your Assessment: Upload your completed document into your learner portal following the instructions provided within the assessment task. You can drag and drop the file into the window or use the add file icon in the top left of the submission window and select the file you wish to upload by using the browse/choose file option. Click on “finish attempt” to submit it for grading. Page 2 of 7 © Real Estate Academy Australia RTO 32436 Version 1.0 – August 2022

FNSSAM413 - Identify and provide initial information to potential new clients (Release 1) Short Answer Questions Question 1 According to the MFAA, the Competition and Consumer Act and the National Consumer Credit Protection Act, summarise the rules and regulations applicable in the Finance and Mortgage Broking industry that a mortgage broker is to take into consideration when prospecting for new clients. Mortgage brokers in the Finance and Mortgage Broking industry need to consider the following rules and regulations when prospecting for new clients: 1.Competition and Consumer Act: Brokers must provide accurate and transparent information, avoid misleading or deceptive conduct, and comply with consumer protection provisions. 2.National Consumer Credit Protection Act (NCCP): Brokers must hold an Australian Credit License or act as a credit representative. They should comply with responsible lending obligations and provide necessary disclosure documents. 3.Mortgage & Finance Association of Australia (MFAA) Code of Practice: Brokers should act in the best interests of clients, disclose conflicts of interest, and adhere to ethical and professional standards. 4.Privacy Laws: Brokers must handle clients' personal information in accordance with privacy principles and obtain consent for data collection and use. 5.Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Laws: Brokers have obligations to prevent money laundering and terrorist financing, including verifying client identities and reporting suspicious transactions. Compliance with these regulations ensures brokers operate ethically, protect client interests, and maintain legal and professional standards. Question 2 List in the table below the two most well-known methods used by mortgage brokers to establish contact with prospects. Complete the pros and cons for each method: Methods Pros Cons Referrals - Higher likelihood of trust and credibility from referred prospects. - Potential for high-quality leads. - Cost-effective compared to other methods. - Limited reach compared to other methods. - Dependence on existing network for referrals. - Relies on the willingness of clients to refer others. Online Marketing - Wide reach and potential totarget a larger audience. - Can attract prospectsactively searching formortgage services. - Provides opportunities - Requires investment in online advertising and marketing campaigns - Increased competition in the online space. - May require expertise or Page 3 of 7 © Real Estate Academy Australia RTO 32436 Version 1.0 – August 2022

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FNSSAM413 - Identify and provide initial information to potential new clients (Release 1) Short Answer Questions forlead generation and data capture. outsourcing to optimize online marketing efforts. Click or tap here to enter text. Click or tap here to enter text. Click or tap here to enter text. Question 3 In your own words, summarise the key features of lead generation via existing networks. Lead generation via existing networks involves leveraging connections and relationships with individuals or businesses that are already known to the mortgage broker. It relies on referrals and recommendations from satisfied clients, colleagues, friends, and family members to generate new leads. Key features of this approach include trust and credibility, potential for high-quality leads, and cost-effectiveness. Page 4 of 7 © Real Estate Academy Australia RTO 32436 Version 1.0 – August 2022

FNSSAM413 - Identify and provide initial information to potential new clients (Release 1) Short Answer Questions Question 4 You are working on building your database and decided to undertake some cold calling with prospects who would be interested by a home loan health check in a view to refinance their application. Identify two questions and concerns that prospects are likely to have and how you will address these: Client questions and concerns Response to address questions and concerns 1. How can a home loan health check benefit me? Explain the benefits of a home loan health check, such as potentially finding better interest rates, reducing monthly repayments, accessing additional loan features, or consolidating debt. Emphasize that it can help them optimize their current mortgage and potentially save money over the long term. Provide examples or case studies of previous clients who have benefited from refinancing after a health check. 2. Will refinancing involve additional costs or fees? Assure prospects that refinancing does involve costs, such as discharge fees, establishment fees, or legal fees, but these can often be rolled into the new loan. Explain that the potential savings and benefits gained from refinancing may outweigh the upfront costs. Provide a clear breakdown of any expected fees and a comparison of the potential savings to help prospects make an informed decision. Offer transparency and ensure they fully understand the financial implications. Question 5 You have cold called two prospects to offer a home loan Health Check. According to their responses recorded in the table below, evaluate what would be the best suited initial range of option to be offered, and how would you prepare for the next contact with the prospect. Option to be considered based on prospect’s needs Prepare for next contact with prospect: The prospect informed that they have a Fixed Interest Rate ending in about 5 months. 1. Offer to review their current loan and explore refinancing options that may provide a lower interest rate. 2. Highlight the benefits of potentially locking in a new 1. Research and gather information on various loan options with competitive interest rates that may be suitable for the prospect's needs. Page 5 of 7 © Real Estate Academy Australia RTO 32436 Version 1.0 – August 2022

FNSSAM413 - Identify and provide initial information to potential new clients (Release 1) Short Answer Questions fixed interest rate before their current rate expires to avoid potential rate increases. 2. Prepare a summary of the potential savings or advantages of refinancing, including any associated costs or fees. The prospect thinks their home loan interest rate is too high and could be lowered and would be happy to proceed with a Home Loan Health Check. 1. Offer to conduct a thoroughassessment of their currentloan and explore options forrefinancing with potentiallylower interest rates. 2. Discuss the potential benefits of refinancing, such as reducing monthly repayments, accessing additional loan features, or consolidating debt. 3. Emphasize the expertiseand experience of your teamin identifying suitable loanoptions and navigating therefinancing process smoothly. 1. Create a checklist or questionnaire to gather essential information about their current loan, financial situation, and refinancing goals. 2. Prepare examples or case studies of previous clients who have successfully refinanced and achieved savings or other desired outcomes. 3. Schedule a follow-up call or meeting to present the findings of the Home Loan Health Check and discuss potential refinancing options based on their needs. Question 6 List at least three ways Personal, Financial and Business Data can be gathered and how Customer Relationship Management software allows instant automation onboarding processes. 1.Ways to gather Personal, Financial, and Business Data: ●Customer surveys ●Online forms ●Data aggregation from external sources 2.How CRM software enables instant automation in onboarding processes: ●Captures and stores data in a centralized platform ●Automates workflows for tasks like sending emails and generating documents ●Integrates with external systems for data verification and identity checks CRM software simplifies data collection and automates onboarding, ensuring efficiency and a smooth customer experience. Question 7 According to ASIC RG 273 record keeping sections, explain why taking a contemporaneous approach is most effective when recording client’s needs and relevant information. Taking a contemporaneous approach to recording client's needs and relevant information, as recommended by ASIC RG 273, is most effective because it ensures: 1.Accuracy and reliability of information. 2.Compliance with regulatory requirements and maintaining an audit trail. Page 6 of 7 © Real Estate Academy Australia RTO 32436 Version 1.0 – August 2022

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FNSSAM413 - Identify and provide initial information to potential new clients (Release 1) Short Answer Questions 3.Better client understanding and engagement. 4.Reliable documentation for future reference. 5.Effective communication and collaboration within the organization. Page 7 of 7 © Real Estate Academy Australia RTO 32436 Version 1.0 – August 2022

FNSSAM413 - Short Answer Questions v1.1

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