10884861_CFMB_AS_v3_Submission2

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Bond University *

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MISC

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Feb 20, 2024

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Written Assignment Certificate IV in Finance and Mortgage Broking (CFMB_AS_v3) Student identification ( student to complete ) Please complete the fields shaded grey. Student number 10884861 Written assignment result ( assessor to complete ) Result — first submission Parts that must be resubmitted See below Result — resubmission (if applicable) Result summary ( assessor to complete ) Section 1: Industry knowledge First submission Resubmission (if required) Task 1 — Key terms Task 2 — The Australian financial market Task 3 — Financial services legislation and industry codes of practice Task 4 — Products and services Section 2: Business skills Task 5 — Effective communication Task 6 — Professional development Task 7 — Customer service Task 8 — Respond and report on complaints Task 9 — Sourcing new clients Task 10 — Professional networks Document classification: Confidential Page 1 of 135 CFMB_AS_v3
Task 11 — Managing information Section 3: The lending process Task 12 — Understanding the client’s needs Task 13 — Developing and presenting solutions Task 14 — Packaging the application to send to the lender Task 15 — Monitor the lending process Section 4: Case studies Task 16 — Case study: Purchasing an owner- occupied home Task 17 — Completing the Fact find Task 18 — Assessing the clients’ situation Task 19 — Presenting borrowing options and potential benefits Task 20 — Supporting the client to settlement Task 21 — Case study: Refinancing a home loan Task 22 — Preparing a Preliminary Assessment Task 23 — Case study: Purchasing an investment property Task 24 — Preparing a loan proposal Task 25 — Loan contracts and security documentation Task 26 — Preparing the loan for settlement Feedback ( assessor to complete ) A very good first attempt in addressing all tasks. Please refer to feedback given when a resubmission task is required. If there is no feedback /comment it should be read as competent. Please refer to your topic notes and case study prior to attempting your resubmission attempt. All the very best . (Please keep your original answers and complete your re-submission answers in a different colour.) Document classification: Confidential Page 2 of 135
Before you begin Read everything in this document before you start your written assignment. About this document This document is the written assignment — half of the overall written and oral assignment. This document includes the following parts: Instructions for completing and submitting this assignment • Section 1: Working in financial services A case study with a series of short-answer questions: – Task 1 — Key terms – Task 2 — Establishing a level of financial knowledge – Task 3 — Financial services legislation and industry codes of practice – Task 4 — Products and services. • Section 2: Business skills – Task 5 — Effective communication – Task 6 — Professional development – Task 7 — Customer service – Task 8 — Respond and report on complaints – Task 9 — Sourcing new clients – Task 10 — Professional networks – Task 11 — Managing information. • Section 3: The lending process A case study with a series of short-answer questions: – Task 12 — Understanding the client’s needs – Task 13 — Developing and presenting solutions – Task 14 — Packaging the application to send to the lender – Task 15 — Monitor the lending process. • Section 4: Case studies – Task 16 — Case study — Purchasing an owner-occupied home – Task 17 — Completing the Fact find – Task 18 — Assessing the clients’ situation – Task 19 — Presenting borrowing options and potential benefits – Task 20 — Supporting the client to settlement – Task 21 — Case study – Refinancing a home loan – Task 22 — Preparing a preliminary assessment – Task 23 — Case study – Purchasing an investment property – Task 24 — Preparing a loan proposal – Task 25 — Loan contracts and security documentation – Task 26 — Preparing the loan for settlement. How to use the study plan We recommend that you use the study plan for this subject to help you manage your time to complete the written assignment within your enrolment period. Your study plan is in the KapLearn subject room. Document classification: Confidential Page 3 of 135
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Instructions for completing and submitting this written assignment Saving your work Download this document to your desktop, type your answers in the spaces provided and save your work regularly. • Use the template provided, as other formats will not be accepted for these assignments. • Name your file as follows: StudentNumber_SubjectCode_AS_versionNumber_SubmissionNumber (e.g. 12345678_CFMB_AS_v3_Submission1 ). • Include your student ID on the first page of the written assignment. Before you submit your work, please do a spell check and proofread your work to ensure that everything is clear and unambiguous. Word count The word count shown with each question is indicative only. You will not be penalised for exceeding the suggested word count. Please do not include additional information which is outside the scope of the question. Additional research When completing the ‘Client information collection tools’, assumptions are permitted although they must not be in conflict with the information provided in the Case Studies. All assumptions must be noted. You may be required to conduct your own research in addition to the topic notes provided to source information to answer some of the assignment questions. You may also be required to source additional information from other organisations within the finance industry to find the products or services to meet your client’s requirements, to source indicative interest rates and to calculate any fees and charges that may be applicable. Document classification: Confidential Page 4 of 135
Submitting the written assignment Only Microsoft Office compatible written assignments submitted in the Word template file will be accepted for marking by Kaplan Professional Education. You need to save and submit this entire document. Incomplete written assignments will be returned to you unmarked. Do not remove any sections of the document. Do not save your completed written assignment as a PDF. The maximum file size for the is 20 MB . Once you submit your written assignment for marking you will be unable to make any further changes to it. You are able to submit your written and oral assignment earlier than the deadline if you are confident you have completed all parts and have prepared a quality submission. Please refer to the Assignment submission/resubmission videos in the ‘Assessment’ section of KapLearn under your ‘Assignment Enrolment’ for details on how to submit/resubmit your written assignment. Note: Your written assignment (in Word), oral assignment (in Word) and audio recording must all be submitted together on or before your personal due date. Please check KapLearn for your due date. The written assignment marking process You have 26 weeks from the date of your activation in this subject to submit your completed written assignment. If you reach the end of your initial enrolment period and have been deemed ‘Not yet demonstrated’ in one or more assessment items, then an additional four (4) weeks will be granted, provided you attempted all assessment tasks during the initial enrolment period. Your assessor will mark your assignments and return it to you in the subject room in KapLearn under the . Make a reasonable attempt You must demonstrate that you have made a reasonable attempt to answer all of the questions in your written assignment. Failure to do so will mean that your written assignment will not be accepted for marking; therefore, you will not receive the benefit of feedback on your submission. If you do not meet these requirements, you will be notified. You will then have until your submission deadline to submit your completed written and oral assignment. Document classification: Confidential Page 5 of 135
How your written assignment is graded Written assignment(s) are used to determine your ‘competence’ in demonstrating the required knowledge and/or skills for each subject. As a result, you will be graded as either ‘Demonstrated’ or ‘Not yet demonstrated’. Your assessor will follow the below process when marking your written assignment: • assess your responses to each question, and sub-parts if applicable, and then determine whether you have demonstrated competence in each question • determine if, on a holistic basis, your responses to the questions have demonstrated overall competence. You must be deemed to be demonstrated in all assessment items in order to be awarded the in this subject, including: • all of the exam questions • the written and oral assignment. ‘Not yet demonstrated’ and resubmissions Should sections of your written assignment be marked as ‘Not yet demonstrated’ you will be given an additional opportunity to amend your responses so that you can demonstrate your competency to the required level. You must address the assessor’s feedback in your amended responses. You only need amend those sections where the assessor has determined you are ‘Not yet demonstrated’. Make changes to your original submission. Use a different text colour for any written sections of your resubmission . Your assessor will be in a better position to gauge the quality and nature of your changes. Ensure you leave your first assessor’s comments in your written assignment, so your second assessor can see the instructions that were originally provided for you. Do not change any comments made by a Kaplan assessor. Document classification: Confidential Page 6 of 135
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Units of competency This written assignment is your opportunity to demonstrate your competency against these units: BSBPEF501 Manage personal and professional development FNSCUS511 Develop and maintain professional relationships in financial services industry FNSFMB411 Prepare loan applications on behalf of clients FNSFMB412 Identify client needs and present broking options FNSFMK515 Comply with financial services regulation and industry codes of practice FNSINC411 Conduct work according to professional practices in the financial services industry FNSINC412 Apply and maintain knowledge of financial products and services BSBPEF402 Develop personal work priorities FNSFMB511 Implement credit contracts in preparation for settlement FNSSAM413 Identify and provide initial information to potential new clients BSBOPS304 Deliver and monitor a service to customers BSBOPS404 Implement customer service strategies Note that the written and oral assignment is one of two assessments required to meet the requirements of the units of competency. We are here to help If you have any questions about this written assignment you can post your query at the ‘Ask your Tutor’ forum in your subject room. You can expect an answer within 24 hours of your posting from one of our technical advisers or Course Coordinator. Document classification: Confidential Page 7 of 135
Assignment tasks ( student to complete ) Please note: Throughout the assignment, you are to assume that you are a finance and mortgage broker. If you are not currently in a finance and mortgage broker role, your answers are to reflect what you would do if you were working in the finance and mortgage broking industry. You can also draw on your current and past work experiences and refer to the topic notes. You may also need to conduct your own research and consult with people who currently work within the finance and mortgage broking industry. Section 1: Industry knowledge Task 1 — Key terms Working in the finance industry requires you to have an understanding of the terminology used and the names of documentation that you will deal with. Demonstrate your understanding of some of the common terms and document names by completing the following tables: Task 1: Question 1 (a) In your own words, complete the table below; define and explain loan transaction terminology and definitions of the following: Student response to Task 1: Question 1(a) Lender and borrower Lender – Party who owns money and makes available to borrower with expectation that funds will be repaid under agreed conditions Borrower - Party who is seeking to obtain a loan from lender Lessor and lessee Lessor – party who issues a lease and generally has ownership of item in question Lessee – party who lessor grants a lease to, who will assume possession of item under terms of the lease Mortgagee and mortgagor Mortgagee – bank or other lender of money for the loan who takes a temporary interest in collateral item to insure loan is repaid Mortgagor – person who is providing a temporary interest in collateral item in exchange for a loan from the mortgagee Assessor feedback Resubmission required? Document classification: Confidential Page 8 of 135
Task 1: Question 1 (b) I n your own words, complete the table below; define and explain the documentation used by lenders: Student response to Task 1: Question 1(b) Credit check signed authority A legal document that authorizes a credit agency to obtain a copy of a clients credit report on their behalf. Used by lenders to partially assess the risk of providing credit to an applicant. Guarantee A legal assurance that conditions of a loan will be met, and if they are not met, what action can be taken by a lender for restitution Loan contract A legally binding agreement between a lender and a borrower for the loaning and repayment of monies Periodical payment authority A service provided by a lender which allows you to authorise them to make payments on your behalf at regular intervals. As an example, a weekly or monthly direct debit for repayment of a loan Signed application form A form containing details of an loan applicant, their income and expenditure, assets and liabilities that is, when signed, acknowledged to be true and correct and replied upon by a lender in combination with other sources when considering providing the loan applied for to the applicant. Assessor feedback Resubmission required? Task 1: Question 1 (c) In your own words, complete the table below; describe: Student response to Task 1: Question 1(c) The negotiation process This is the primary task of a mortgage broker, where they go between the lender and the borrower to negotiate interest rates, amounts, collateral, timeframes among other components of a loan. This process usually starts with a signed application form after consultation between a mortgage broker and their client. Customer Relationship Management (CRM) tool Software that helps you manage the details and interactions forming a relationship with your customers. These tools are also used to analyse customers preferences, create personalised campaigns and generate more leads and referrals. This software also helps you keep track of past customers, maintaining relationships and allowing for further business opportunities stemming from those relationships Certificate of Currency A certificate provided by an insurer stating that they currently provide cover for a property. This is often a requirement of a lender as a step to mitigate risk of the devaluation of collateral provided to support repayment of their loan. Document classification: Confidential Page 9 of 135
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Assessor feedback Resubmission required? Document classification: Confidential Page 10 of 135
Task 1 — Assessor feedback: You have demonstrated a good working knowledge in each task within this section. In doing so you have met the performance criteria related to the units and demonstrated competency Date assessed: 1/11/2023 Does the student need to resubmit? Questions that need to be resubmitted First submission Resubmission To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Document classification: Confidential Page 11 of 135
Task 2 ― The Australian financial market The state of the economy and financial markets affects elements of lending, such as interest rates; and also has an impact on consumers’ attitudes to borrowing and debt. The Reserve Bank of Australia (RBA) is Australia’s central bank and is responsible for monetary policy, financial and payment system policies, and other financial matters. Task 2: Question 1 Research the RBA website and answer the following questions: (a) List the three (3) statutory objectives (key elements) the RBA sets out to achieve. (20 words) Hint/Tip: There is a link to the website in the Toolbox. Watch the Monetary Policy Framework video on the RBA website: < www.rba.gov.au/monetary-policy >, viewed 10 November 2022. Student response to Task 2: Question 1(a) 1. The stability of Australian Currency (low inflation) 2. The maintenance of employment in Australia 3. The economic prosperity and welfare of the people of Australia. Assessor feedback Resubmission required? The RBA meet on the first Tuesday of each month to review the cash rate. (b) Name three (3) things relevant to a mortgage broker’s role upon which the cash rate impacts. (25 words) Student response to Task 2: Question 1(b) 1. Interest rates on mortgages 2. Income and commission of Mortgage Brokers 3. Mortgage and refinancing demand 2. Saving and spending behaviour of households (deposit availability) – less savings when interest rates are higher 3. Household cashflow (determining serviceability of potential loans) – less cashflow when interest rates are higher 4. House prices (the loan amount) – historically property prices decrease as interest rates increase 5. Credit Supply (bank policies about who they will write a loan for) - interest rate increases can reduce the borrowing capacity of buyers as there are more potential serviceability issues, which can then in turn decrease the amount of loans written Document classification: Confidential Page 12 of 135
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Assessor feedback Resubmission required? Q2.1b Competency not yet Demonstrated Mortgage broker’s role upon which the cash rate impacts – you got 1 out of 3 correct. (Rates are acceptable) If you go through your course notes and search impact it will bring up various options for you to research. You can also refer to Topic 1.1.38 Part 16 for some guidance. If you search as per link attached it will assist you https://www.rba.gov.au/monetary- policy/about.html Read section: The Transmission of Monetary Policy to the Economy Paragraph-The changes in interest rates affect Task 2 — Assessor feedback [insert feedback] Date assessed: Click here to enter a date Does the student need to resubmit? Questions that need to be resubmitted 2.1b First submission Resubmission To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Document classification: Confidential Page 13 of 135
Task 3 — Financial services legislation and industry codes of practice Task 3: Question 1 Conduct some research to identify websites that you could use to keep up to date with regulatory changes and changes in codes of practice in the mortgage broking industry. Complete the table below with the following information: • Two (2) Regulations/Legislations and two (2) codes of practice with which you must keep up to date. • For both, provide the website name and URL address, and explain how these websites are helpful for keeping up to date with changes. (40 words) Student response to Task 3: Question 1 Regulation/ Legislation name Website URL address Explain how this website is helpful to keep up to date with changes 1. Banking Act 1959 (Cth) https://www.legislation.gov.au/Details/C2021C00293 Contains the most up to date copy of the act 2. National Consumer Credit Protection Act 2009 (Cth) https://www.legislation.gov.au/Details/C2022C00210 Contains the most up to date copy of the act Code name Website URL address Explain how this website is helpful to keep up to date with changes 1. MFAA Code of Practice https://www.mfaa.com.au/membership/membership- governance/code-of-practice Contains the most up to date MFAA code of practice which will keep members up to date on latest regulations and best practice 2. FBAA Code of Practice https://www.fbaa.com.au/about/governance/ Contains the most up to date FBAA code of practice which will keep members up to date on latest regulations and best practice Assessor feedback Resubmission required? Task 3: Question 2 List two (2) risks and the consequences that are associated with not complying with the NCCP Act. (30 words) Document classification: Confidential Page 14 of 135
Student response to Task 3: Question 2 Risks: 1. Criminal Sanctions; 2. Civil Litigation Consequences: Criminal charges for individuals (including fines and possible jail time), or fines and cease and desist orders for companies. Consequences can also mean restitution for those who are worse off for your action together with a bad reputation within the industry Assessor feedback Resubmission required? Document classification: Confidential Page 15 of 135
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Task 3: Question 3 In your own words, describe the key features of the Privacy Act 1988 . (30 words) Student response to Task 3: Question 3 1. Establishment of the National Privacy Principles and approval of Australian Privacy Principles by the Commissioner 2. Provisions for credit reporting and the handling/disclosure of information to credit reporting bodies 3. Provisions for the handling/disclosure of information to all parties involved and the right for someone to access all personal information held about them Assessor feedback Resubmission required? Task 3: Question 4 (a) In your own words, describe the key features and the purpose of codes of practice. (b) Provide one (1) example of how a code of practice would be implemented into a work situation for a mortgage broker. (50 words) Student response to Task 3 Question 4(a)–(b) a) They provide guidance and best practice on how to comply with legal duties under acts of legislation. Key features of a code of practice could include: 1. Strict/elevated behavioural or practice standards for members to comply with 2. A dispute resolution process which customers can use to help settle disputes with their broker b) In order to maintain a MFAA membership, brokers are also required to maintain AFCA membership, professional indemnity insurance and be required to act in their customers best interests. If they fail any of those items, then their membership to (and endorsement by) the MFAA may be revoked. Those standards are set to protect their customers. Assessor feedback Resubmission required? Task 3: Question 5 (a) In your own words describe best interests duty. (b) Provide one (1) example of how the best interests duty would be implemented into a work situation for a mortgage broker. (50 words) Document classification: Confidential Page 16 of 135
Student response to Task 3: Question 5(a)–(b) (a) A legal duty imposed on a mortgage broker to always act primarily in the best interest of their customers (b) A mortgage broker must only organise appropriate finance for a customer. Acting in their best interest may mean that you may not be able to obtain a loan for a customer of the size they are requesting as they are not able to service it without suffering mortgage stress, as suffering as such would not be in their best interests. Assessor feedback Resubmission required? Document classification: Confidential Page 17 of 135
Task 3: Question 6 (a) How would you communicate changes in regulation, legislation, or codes of practice to your colleagues? (b) Explain how you would execute changes to your organisation’s policy, procedures and practices to ensure that you are meeting the changes (for example, the introduction of best interests duty). (80 words) Student response to Task 3: Question 6(a)–(b) (a) Sending out a company newsletter and forwarding industry body emails to colleagues (b) Update the policy documents and send out an email specifying exactly what changes have occurred and how it relates to the employees and their duties, and potentially conduct a training session with employees affected where you could take questions and provide clarification Assessor feedback Resubmission required? Task 3: Question 7 If you were unsure of how to apply any regulation, legislation or codes of practice to your role or interaction with a client, explain what you would do. (30 words) Student response to Task 3: Question 7 You could make an enquiry with an industry body of which you are a member, seek legal advice, or the advice of an experienced industry mentor Assessor feedback Resubmission required? Document classification: Confidential Page 18 of 135
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Task 3: Question 8 Remaining compliant with financial services regulation and industry codes of practice is vital. One way to make sure compliance is being met is through monitoring or internal audits. You have been asked by your manager to implement an internal monitoring/audit process for your mortgage broking firm to ensure that the credit representatives are meeting their obligations with regulation, legislation and codes of practice. Outline the monitoring/audit process that you have implemented to ensure compliance. You should include the following: • How you will monitor/audit compliance. • Who will undertake the monitoring/audit process. • What tools you will use. • How or where you will record the outcomes. (150 words) Student response to Task 3: Question 8 1. Design a checklist of requirements that’s lists in a practical way what steps and checks are required to be undertaken to remain compliant with relevant legislation and codes of conduct. This checklist is to be marked off during the assessment of a client and writing of a loan and signed by the broker at the end of the process and stored on the clients’ electronic file. 2. At the end of each loan writing process the credit representative is to meet with their supervisor and go through each step of the checklist with the supervisor signing the checklist once they are satisfied that the loan was written in a compliant manner and in the best interests of the client 3. The internal monitoring process will require someone external to the company with knowledge of the industry to randomly select several loans written then compare the checklist to the supporting documentation, ensuring all steps on the checklist were completed to a high standard 4. The auditor will produce a report detailing which loans showed non-compliance and the manner in which they were non-compliant. This report will also detail statistics which will highlight the areas with which most non-compliance was found informing the updating of the checklist and where company policies, procedures and training need focusing toward Assessor feedback Resubmission required? Task 3: Question 9 What information provided by a client needs to be retained by a financial services organisation, like a brokerage? (50 words) Document classification: Confidential Page 19 of 135
Student response to Task 3: Question 9 1. Records of loan product eligibility and selection according to client requirements and objectives 2. Serviceability assessment 3. Loan comparative cost analysis 4. All documentation completed and relevant to the loan Assessor feedback Resubmission required? Task 3 — Assessor feedback: You have demonstrated a good understanding of the topics covered in this task question and achieved competency. Date assessed: Click here to enter a date Does the student need to resubmit? Questions that need to be resubmitted First submission Resubmission To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Document classification: Confidential Page 20 of 135
Task 4 — Products and services The financial services industry is very competitive, with many organisations offering a number of different lending and transactional products and services. Organisations use a variety of approaches to market and promote their products and services. It is very important that brokers are able to determine the right product and service to meet the needs and requirements of their clients. Some clients like to be able to combine their lending products with other banking products and services. While it is important to have a thorough knowledge of lending products, it is also important to be able to identify other relevant products and services to accommodate your client’s needs and requirements. Task 4: Question 1 Using the information in the topic notes in conjunction with your own research, complete the product knowledge table below. Student response to Task 4: Question 1 1. Variable rate home loan — package 2. Fixed rate home loan 3. Interest only home loan Financial institution and name of product CBA – Standard Vairable Rate Home Loan ING – Fixed Rate Home Loan Westpac – Flexi-First Interest Only Product characteristics (features) (Minimum of three (3)) 1. Everyday offset account 2. Ability to split loan 3. Interest-Only option available 1. No ongoing monthly or annual fees 2. No redraw facility 3. Interest rate stays the same for the term of the agreement 1. Lower individual repayments than P&I loan 2. Nothing to redraw on, so no redraw facility 3. Available on both fixed and variable rates Product purpose (What would a client use this for?) Purchasing a property – new borrowings only New borrowing or refinancing residential property Good for investors who are looking for capital growth (buy & flip) Applicable fees and charges $600 establishment fee, $8/mo service fee $299 loan settlement fee $499 fixed rate application fee $150 establishment fee Terms and conditions of this product (Minimum of three (3)) 1. HL5.4 – Repay principle and interest at times specified in schedule E or at times subsequently agreed and where you are notified 2. HL11.3 – Admin fee charagable on any full or partial pre-payment if a loss is incurred by the bank 3. HL 5.1 – First repayment due 1 month after funding date 1. 2.2.2 – Break costs apply to a fixed rate loan if you make payments of $10k or more in any one year period 2. 1.1(c) - Evidence of comprehensive insurance on the property held as security is required 3. 1.3 – You must tell us if anything has happened which prevents you from complying with your obligations under the contract 1. Interest-only period not extendable unless as part of a complete refinance 2. Once interest-only period expires, loan will revert to P&I loan automatically 3. Only available with fixed rate loans at the start of the loan term Document classification: Confidential Page 21 of 135
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1. Variable rate home loan — package 2. Fixed rate home loan 3. Interest only home loan List one (1) strength and one (1) weakness Strength: Very flexible, if interest rates drop then repayments drop Weakness: Higher rates for the features associated with the loan, if interest rates rise, so do repayments Strength: Certainly on repayment amounts Weakness: Higher interest rate usually, can also mean that you don’t receive benefit from RBA lowering cash rate Strength: Repayments are significantly lower than a P&I loan. Repayments are also tax deductable for investors Weakness: Principle takes longer to decrease, meaning more interest will be paid over the life of the loan. Interest rates also tend to be higher for these loans 4. Home equity loan (line of credit) 5. Credit card 6. Personal overdraft Financial institution and name of product ANZ – Equity Manager ING – Orange One Low Rate Classic St. George – Personal Overdraft Product characteristics (features) (Minimum of three (3)) 1. Lend against built up equity in your property 2. Variable interest rate only 3. Combines features of a line of credit with an everyday transaction account 1. 45 days interest free 2. $1000-$30000 available 3. Can be used for cash advances as well as purchases, although this attracts a higher interest rate 1. Interest only charged on funds that have been used 2. Preapproved funds immediately available 3. Unsecured Product purpose (What would a client use this for?) To increase the amount they can borrow without having to refinance. This can fund renovations for example Personal emergency / unbudgeted expenditure Similar to credit card except not based on a separate account or card. Linked directly to an existing account Applicable fees and charges Settlement Fee - $160 $0 establishment and valuation fees Late payment fee of $20 No annual fee No establishment fee $5 monthly fee Terms and conditions of this product (Minimum of three (3)) 1. If a debit is processed to your account which would exceed your credit limit, ANZ may choose to allow it under the ‘Informal Overdraft Facility’ 2. ANZ may immediately cancel the credit limit on your facility by providing 30 days notice. At which time you will be required to repay the full balance 3. Interest is calculated on the unpaid daily balance of your credit facility 1. You must hold an existing transaction account with ING to be eligable 2. You must nominate an account and agree for them to take the minimum repayment due when it becomes due 3. Should a transaction occur that would push the card over its credit limit, the transaction will be declined. 1. A higher interest rate will be charged on overdue amounts, or when you go past the overdraft limit should the transaction not be declined 2. Must be permanent resident of Aus/NZ 3. Interest based on a 365 days year, including on a leap year List one (1) strength and one (1) weakness Strength: Rates are lower than credit cards Weakness: A soft real estate market can see a reduced Strength: can use like cash for day to day transactions, but is more secure Weakness: fees and Strength: funds available for any purpose almost immediately Weakness: high interest Document classification: Confidential Page 22 of 135
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1. Variable rate home loan — package 2. Fixed rate home loan 3. Interest only home loan amount available when applying charges, higher interest rates rates Assessor feedback Resubmission required? Task 4: Question 2 Conduct your own research on current home loan industry trends. Provide a minimum of three (3) current trends. (50 words) Student response to Task 4: Question 2 1. Lower rates when a larger deposit is presented 2. Split loans (part variable and part fixed) to hedge against interest rate fluctuation 3. Adoption of online application processes Assessor feedback Resubmission required? Task 4: Question 3 (a) How do financial service providers market and/or promote their products and services? (b) Where can you locate a lending organisation’s current promotions and specials? (c) Describe how you would identify clients whose needs match products and services that are part of a current promotional strategy. (d Describe how you can keep your product knowledge up to date. Include the methods and/or systems you could use to maintain product knowledge. (40 words) Student response to Task 4: Question 3(a)–(d) (a) Via website, word of mouth and social media (b) Website and TV advertising (c) Look at the clients budget and timeline, as an example, if they want to buy now then they are a potentially a good fit for a current promotion (d) join an industry body and read their membership communications, participate in regular professional development activities Document classification: Confidential Page 23 of 135
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Assessor feedback Resubmission required? Task 4: Question 4 The Australian Banking Association’s (ABA) Banking Code of Practice (BCOP) outlines several obligations for the provision of financial products and services. The Code can be downloaded from the ABA website. (a) List at least two (2) items of information that must be provided to a client when providing financial products and services. (b) Refer to the items you listed in part (a) and explain what the items clearly set out. (c) What four (4) factors does the Code advise about providing banking services to vulnerable clients? (d) According to the BCOP, how would you identify (become aware of) a potentially vulnerable client and a client on a low-income? (100 words) Student response to Task 4: Question 4(a)–(d) (a) Terms & Conditions, Fees & Charges, Interest Rates (b) (1 – what conditions you and the lender agree to abide by to partake in the product) (2 – the amount of fees and charges and how often they are credited/debited to your account) (3 – any interest rate that applies, the way in which it’s calculated, and when it will be debited to your account) (c) (1 – be respectful for you need of confidentiality) (2 – try and make it easier for you to communicate with them) (3 – provide appropriate guidance and referral to help you maintain or regain control of your finances) (4 – refer you to external support if appropriate) (d) When the client themselves tells you about their cicumstances Assessor feedback Resubmission required? Task 4: Question 5 What is a deposit bond and when would it be suitable for a purchaser to use this product? (Refer to the Toolbox or conduct your own research) (30 words) Student response to Task 4: Question 5 Generally used when a buyer doesn’t have enough available cash to cover a deposit. A deposit bond is usually issued by an insurance company and will come at a cost to the property buyer Assessor feedback Resubmission required? Document classification: Confidential Page 24 of 135
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Task 4 — Assessor feedback: You have demonstrated a good understanding of the topics covered in this task question and achieved competency. Date assessed: Click here to enter a date Does the student need to resubmit? Questions that need to be resubmitted First submission Resubmission To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Document classification: Confidential Page 25 of 135
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Section 2: Business skills Task 5 ― Effective communication Communication is vital in all interactions, particularly for successful team and client relationships in business. Answer the following questions using the information from the topic notes in conjunction with your own research. Task 5: Question 1 List a minimum of four (4) types of communication skills and explain why each is important for effective business communication. (40 words) Student response to Task 5: Question 1 Listening – allows for effective interpretation of what’s being communicated Verbal – Equally important to Listening, verbal allows for provision of the message to be communicated. Questioning – Allows for the clarification of what’s being communicated and for avoiding miscommunication. Non-verbal – Enhances or skews interpretation of the communicated message Assessor feedback Resubmission required? Task 5: Question 2 (a) Explain why listening is so important for effective communication. (b) List three (3) barriers to effective listening. (30 words) Student response to Task 5: Question 2(a)–(b) (a) Communication requires two parties, a sender and a receiver. Listening is what the receiver does to receive a verbal message and it also allows trust to build and valuable insights to be gained (b) Personal Bias, Talking too much, Jargon Assessor feedback Resubmission required? Document classification: Confidential Page 26 of 135
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Task 5: Question 3 List five (5) tips to help someone communicate more effectively with different types of clients ( e.g. when dealing with a someone from a different cultural background, whose first language may not be English or a difficult client) . (50 words) Student response to Task 5: Question 3 1. Always show respect for cultural and individual differences 2. Be patient – Articulating a thought when the audience has different cultural or other biases/filters can require a lot of concentration and effort. This also shows respect for the communicator 3. Avoid using slang, jargon or acronyms as they can skew the effectiveness of the communication 4. Use gestures and visual information (charts etc) 5. Speaking clearly and slowly in a manner that’s easy to understand Assessor feedback Resubmission required? Task 5 — Assessor feedback: You have demonstrated a good understanding of the topics covered in this task question and achieved competency. Date assessed: Click here to enter a date Does the student need to resubmit? Questions that need to be resubmitted First submission Resubmission To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Document classification: Confidential Page 27 of 135
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Task 6 — Professional development Refer to the business profile for Capital City Finance and Mortgage Brokers (CCF & MB) located in the subject room. For this task you are to assume you are a mortgage consultant with the CCF & MB team. Your manager has gone on extended leave and you have been given the task to step up into their role for that period. You are responsible for the performance and development of yourself and your team. You also have a new team member starting in your organisation. It is now your responsibility to ensure that they are provided with the correct information and support to ensure they have the best opportunity to succeed in your organisation. You will be required to explain a number of items to your team, as well as support and guide them to maintain their performance and professional development during this time. Task 6: Question 1 (a) Explain why is it important for individual work goals to align to the organisation’s goals? (b) Identify the types of organisational framework that you can refer to when planning your own and your team’s work goals to ensure that they align to the organisation’s goals. (c) List the colleagues you would consult with if you required clarification of your own role responsibilities and how they fit into the wider organisation’s goals and objectives. (80 words) Hint/Tip: You may be required to conduct your own research for this Task. Refer to the Toolbox for suggested links. Student response to Task 6: Question 1(a)–(c) (a) To ensure that the individual and organisation have the same priorities and are pulling in the same direction. An organisation that values long term repeat business may clash with an individual who places a higher value on closing every deal as quick as possible. It also allows an employee a better understanding of what their actions mean for the organisation (b) The SMART when assessing if a goal is appropriate, Balanced Scorecard for setting and comparing individual and organisational goals, Objectives and Key Results (OKR) (c) George and Mildred Spencer as experienced lenders and owners of the organisation, Jennifer Dee as a more experienced mortgage consultant. All of these team members would have a lot of industry knowledge that would be very valuable to a new broker Assessor feedback Resubmission required? Document classification: Confidential Page 28 of 135
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Task 6: Question 2 (a) Where would you document the new team member’s role responsibilities? (b) How will you outline and document their role-specific targets? (c) Explain how you will support the new team member to set goals to ensure they will achieve their targets. (d) Describe how you can use technology to help you manage the team’s work priorities. (50 words) Student response to Task 6: Question 2(a)–(d) (a) Job Description, signed when they join the company (b) KPIs (Key Performance Indicators), also as part of the job description (c) Regular check-ins and coaching sessions, performance development plans (d) Youtube to help them learn new skills, Teams/Zoom to help them attend meetings if they would otherwise be absent, Teams/Zoom to create virtual whiteboards where they can see progress in achieving goals across the organisation and individually, Monday.com to create checklists and workflow documents Assessor feedback Resubmission required? Task 6: Question 3 What guidance can you provide the new team member to keep up to date with industry and product knowledge? Provide a minimum of four (4) tips. (50 words) Student response to Task 6: Question 3 1. Develop relationships with the BDMs to better product knowledge. 2. Keep abreast of the CPD requirements of the MFAA and CFAA and work to EXCEED them continuously 3. enrolling in a further education committee 4. Subscribe to a reputable professional journal or publication Assessor feedback Resubmission required? Document classification: Confidential Page 29 of 135
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Task 6: Question 4 (a) Describe how you can encourage and facilitate personal and professional development for you and your team? (b) How can you record and document you and your team’s personal and professional development goals? (c) Explain the human resources policy and procedure at CCF & MB regarding the attendance of professional development seminars, webinars and offsite development workshops. (Refer to the example business profile for CCF & MB) (50 words) Student response to Task 6: Question 4(a)–(c) ( a) By making CPD financially beneficial (paid attendance or paid courses). Also by making the development more insightful for them as a person by using personality quizzes which may help them understand how they learn and interact with people (b) Keeping a file or attendance records or certificates for each staff member, this may be through the professional body’s online portal (c) CCF&MB make attending CPD and keeping records a part of both the consultants job description and their KPI matrix. The company policy also stipulates that they must meet the 30 CPD hours required by the MFAA, recording all CPD within 48 hours of attendance. This essentially puts the onus on the employee to ensure they are compliant with MFAA CPD policies and as such can maintain their accreditation and employability Assessor feedback Resubmission required? Task 6: Question 5 (a) Describe how can you identify team health and wellbeing in the workplace. (e.g. How would you know if your team is working well together and if individuals are okay). (b) What strategies might you put into place to manage team health and wellbeing in your workplace? (80 words) Student response to Task 6: Question 5(a)–(b) ( a) By having frequent one-on-one meetings where employees have a chance to talk about any issues; by having regular performance reviews where uncharacteristic performance can be identified and enquired about, by prioritizing work-life balance and creating opportunities to enhance it (b) Anti-bullying policy, employee assistant program, employee conduct policy, free-dress Fridays (or other team building days), frequent education on policies and also psychosocial factors that can impact performance and team morale Assessor feedback Resubmission required? Document classification: Confidential Page 30 of 135
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Task 6: Question 6 Part of your role requires you to monitor and measure your own performance. (a) Complete the annual targets in your scorecard. (You may need to conduct some research for realistic targets ― there is an example Scorecard located in the Business Profile for CCF & MB) (b) Complete the actual results up to Quarter 3. You notice you are behind in two Key Performance Indicators (KPIs). Record the results in the Scorecard below. (c) Draft an email to your team leader: (i) Include your results compared against the last quarter. (ii) Include a self-assessment of your performance. (iii) Seek feedback from your team leader of steps that you can take to improve your work performance and meet your targets. Document classification: Confidential Page 31 of 135
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Student response to Task 6: Question 6(a)–(c) (a) and (b) Goal Q1 target Actual Result % of target Q2 target Actual Result % of target Q3 target Actual Result % of target Q4 target Actual End of year result % of target New Leads Acquired 50 40 80% 50 55 110% 50 55 110% 50 New Apps Submitted 20 20 100% 20 25 125% 20 22 110% 20 Pull Through Rate 40% 35% 87% 50% 45% 90% 50% 50% 100% 50% Average Cycle Time 35 days 50 days 142% 35 days 60 days 170% 35 days 40 days 114% 35 days (c) Hi Bob, Just looking over my results from the first 3 quarters of this year and I’ve seen a marked improvement in last quarter although I’m still falling short for the year to date. My insight into the problems I had earlier on in the year with the pull through and cycle time metrics was that the low pull through rate can indicate that the quality of my applications might have been lacking and perhaps required more training on my part or reassessment of our application processes should other brokers produce similar results. Further, the average cycle time being much higher than average may indicate that I’m not getting required information from the clients in a fast enough manner, which is causing me delays when submitting my applications. I’d love to sit down with you at some stage soon and get your insight into my performance. Could you please let me know a time that suits? Thanks Mike Document classification: Confidential Page 32 of 135
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Assessor feedback Resubmission required? Task 6: Question 7 Improving your own work performance requires both self-assessment and seeking feedback from others. (a) Describe how you monitor and update your own performance against your scorecard. (b) To improve your own personal performance, how should you approach the feedback you receive from others? (c) When reviewing your performance against your colleagues/workgroup, describe the different methods you can use to analyse and interpret feedback from others. (d) When communicating with people from different cultures, identify what barriers you need to overcome to ensure you meet your personal responsibilities? (200 words) Student response to Task 6: Question 7(a)–(d) (a) Scorecards must be continually updated to be most effective. They allow you to track performance and set new goals based on the results you have produced, but the information you put into them has to be honest, accurate and timely (b) Listen actively and request specific examples to ensure you understand the feedback that was given; be open-minded and try to see the validity in their perspective; ensure you take action on the feedback and follow-up for further feedback (c) 360 degree feedback takes information collected from a number of different sources including managers, colleagues and clients to provide a broad perspective of your performance; Peer review by more experienced colleagues can be handy as they may have fixes for shortfalls through similar experiences (d) Sometimes there may be parts of the feedback message that might get misunderstood, so it’s important to check that the feedback and its purpose has been understood. Barriers to overcome might include misinterpretation of tone, gestures or body-language, misinterpretation of the meaning of some words that are used, usage of jargon or acronyms Document classification: Confidential Page 33 of 135
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Task 6: Question 8 (a) You are required to create a professional development plan (PDP). (Refer to the Toolbox for a sample PDP or you can develop your own.) Your PDP must include the following, namely: • the two (2) KPIs from your scorecard for which you are behind as at Quarter 3. • a goal for each of those KPIs to ensure you will achieve them by Quarter 4. • the steps/actions you will take to achieve the goals. • two (2) professional development areas that you would like to improve • two (2) formal training or continuous professional development activities that relate to the industry (refer to industry associations for ideas). • the minimum amount of CPD points you would need to maintain if you were a Mortgage and Finance Association of Australia (MFAA) member holding ‘loan writer’ status ( link available in the Toolbox ). (b) Once you have completed your professional development plan, who will you seek feedback from on the plan? (150 words) Student response to Task 6: Question 8(a)–(b) (a) Professional Development Plan : Mortgage Consultant Development Area 1: KPI Achievements (Pull Through Rate & Average Cycle Time) Goals Specific: To reach my pull through rate and average cycle time targets for the year Measurable: 47.5% pull through rate across the year, 35 day average cycle time across the year Achievable: 1 - Get all relevant and accurate information from customers faster to ensure loans are approved more frequently and quicker. 2 - Undertake product training or one-on-one training from mentor on application processes to ensure I’m completing them efficiently and not wasting any time Realistic: This goal aligns with my KPI scorecard and is equivalent to the target set. Timely: By the end of Quarter 4. Monitor weekly progress each week for the 12 weeks remaining in the year Development Area 2: Professional development training Goals Specific: To undertake training in areas that I feel would help me be a more effective mortgage broker Measurable: Undertake 2 PD courses, log-able under the MFAA accreditable 30 hours of CPD Achievable: 1 – Attend MFAA hosted industry conference and MFAA lender and aggregator course Realistic: This goal aligns with CPD memberships requirements for MFAA Timely: By the end of Quarter 4 to ensure the 30 hour CPD requirements are met (b) Feedback should be sought from a company manager or an experienced industry mentor Document classification: Confidential Page 35 of 135
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Assessor feedback Resubmission required? Task 6: Question 9 Now that you have developed your own PDP, prepare two (2) other PDPs, each containing a minimum of two (2) development areas, for the following staff members: (a) a loans administrative officer (b) a mortgage broker who has recently joined the team. (150 words) Document classification: Confidential Page 36 of 135
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Student response to Task 6: Question 9(a)–(b) Document classification: Confidential Page 37 of 135
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(a) Professional Development Plan – Loans Administration Officer Development Area 1: Analytical Skills Goals Specific: Improve analytical skills by taking further MFAA approved courses which are directed at analysing how products and customers relate Measurable: Enrol and complete 2 courses which will help improve analytical skills in this space Achievable: This might be tight as some courses are only run annually and may not be available on schedule Realistic: Courses are run frequently Timely: Complete these 2 courses in the next 6 months as they become available Development Area 2: Communication Skills Goals Specific: Improve client and lender side communication skills by taking courses detailing strategies to communicate effectively in finance Measurable: Enrol and complete 2 courses on professional communication in finance Achievable: 2 courses over the period of 3 months is a reasonable workload to fit in around a work schedule Realistic: Well regarded courses on professional communication are readily available Timely: 3 months (b) Professional Development Plan – Newly Onboarded Mortgage Broker Development Area 1: Local Community Integration/Networking Goals Specific: Increase your awareness of the community through joining clubs and groups Measurable: Make contact with 3 clubs and obtain a schedule of events for the coming 3 months Achievable: Volunteer at 3 events over the quarter, using those events to develop connections and relationships Realistic: Community events are run fairly frequently, upon making contact with 3 clubs there should be as many events in a 3 month time period Timely: A 3 month period is a reasonable time frame to attend 3 events in Development Area 2: Get to know the local property market and industry players Goals Specific: Look at real estate statistics to find out who the largest selling real estate agents in the area are Measurable: Find 3 highest selling agents and make contact Achievable: 3 agents is not many to find in the one area Realistic: 3 months should be enough time to schedule meetings or calls in the busy schedules of these estate agents, and those may not be necessary should they host open homes Document classification: Confidential Page 38 of 135
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Task 6: Question 10 Managing your time is vital to being able to juggle all of your work tasks, professional development and personal life. Refer to the information provided in the topic notes as well as conduct your own research regarding the ‘important/urgent’ matrix. There are many short videos available — for example, the Eisenhower matrix: How to manage your tasks with Eisenhower, [online video], viewed 10 November 2022, < www.youtube.com/watch?v=tT89OZ7TNwc >. (a) Make a list of a minimum of twelve (12) tasks and activities a mortgage broker (or mortgage consultant) would need to complete in their role. This should include anything that requires your time — for example, team meetings, emails, personal emails, making a coffee, processing your work, training etc. (30 words) Hint/Tip: Refer to the example business profile for Capital City Finance & Mortgage Brokers (CCF & MB) for a Mortgage Consultants Role description and list of role tasks. When it comes to phone calls and emails, be specific about the types of phone calls or emails you handle. For example, personal/social emails versus urgent email requests from a client. Student response to Task 6: Question 10(a) (a) 1. Lead generating phone calls 2. Attend networking events 3. Attend CPD events or complete CPD courses 4. Complete fact finds, needs analysis and other documentation 5. Talk with lenders regarding their products 6. Follow up lending applications via email or phone 7. Follow up clients for additional information via phone 8. Liaise with other professional regarding lead generation and networking 9. Maintain own PDP and scorecard 10. Meet with clients to discuss needs analysis and fact finding 11. Phone calls to keep client informed of progress/next step 12. Complete and submit relevant reporting 13. Store and organise CPD records appropriately 14. Analysing market trends Assessor feedback Resubmission required? Document classification: Confidential Page 40 of 135
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(b) Once you have listed your job tasks above (from part a), place each task in the appropriate quadrant. (30 words) Student response to Task 6: Question 10(b) Important/Urgent (Do Now) 4. Complete fact finds, needs analysis and other documentation 6. Follow up lending applications via email or phone 7. Follow up clients for additional information via phone Important/Not Urgent (Schedule) 1. Lead generating phone calls 3. Attend CPD events or complete CPD courses 12. Complete and submit relevant reporting 9. Maintain own PDP and scorecard 10. Meet with clients to discuss needs analysis and fact finding 11. Phone calls to keep client informed of progress/next step 8. Liaise with other professional regarding lead generation and networking 14. Analysing market trends 13. Store and organise CPD recoreds Not Important/Urgent (Delegate) 2. Attend networking events 5. Talk with lenders regarding their products Not Important/Not Urgent (Eliminate) NA Assessor feedback Resubmission required? Task 6 — Assessor feedback: You have demonstrated a good understanding of the topics covered in this task question and achieved competency. Document classification: Confidential Page 41 of 135
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Date assessed: Click here to enter a date Does the student need to resubmit? Questions that need to be resubmitted First submission Resubmission To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Task 7 — Customer service Customer service is integral to the success of any organisation and regardless of industry, customers are placed at the core of everything businesses do. Therefore, being clear on your organisation’s customer service standards is critical to ensure that the service you and your team provide is in line with its culture and expectations. Organisations establish customer service systems to ensure there is a consistently high standard of service for customers from end to end, across all departments, involving all team members, and at every touchpoint their customers have with their organisation. It is important that the customer service system is continually monitored and reviewed to ensure that the system remains effective. For the following questions, reflect on your current or past organisation or conduct research to explain how businesses approach gathering, monitoring and acting on feedback from internal and external customers. Then answer the following questions. Task 7: Question 1 List and explain three (3) processes that a business can use to gather feedback from its clients? (30 words) Student response to Task 7: Question 1 1. An email/paper questionnaire provided to a client at the end of the service process. These generally use open ended questions to allow for unexpected feedback 2. A phone follow-up a month or so after a service has been provided. This allows time for any hiccups in the process to be recognised and also for the consumer to process any thoughts about their experience 3. A web-site or social media based feedback/enquiry form which allows customers who are actively seeking to provide feedback to do so Assessor feedback Resubmission required? Document classification: Confidential Page 42 of 135
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Task 7: Question 2 Feedback is very important for a business to understand that the products and service that they provide to their clients meets the expectations of the clients. The feedback from the quarterly customer survey on the service and products provided has been received by the business. There are six (6) responses of feedback received: 1. ‘The broker was really helpful and responded quickly to my emails. They were very personable and professional’: Sam Welsh 2. ‘I left a message on their message bank on Thursday night, leaving my details to be contacted the next day. I didn’t get a response call until the following Thursday, I really couldn’t wait that long as I had found a property and went elsewhere’: Anh Nam 3. ‘No one responded my calls in a timely manner, it was always two to three days later’: Mario Taranto 4. ‘I sent an email on the Friday and still did not have a response by the following Friday, I wasn’t very happy with that’: Aya Farid 5. ‘I sent through a couple of emails with questions that I had regarding my loan application. The response I received was not what I was expecting — very unprofessional’: Yarran Danggetti 6. ‘ I am really happy with the products recommended to meet my needs for a home loan’: Dan Wong It is important to record and action this feedback. Part 1 The feedback is to be recorded in the client files. (a) Select three (3) responses from above and record these details in the table below, including what actions you would take. (b) How would you confirm that the client’s expectations have been met in response to their feedback? Student response to Task 7: Question 2 Part 1(a)–(b) (a) Client name Feedback source Feedback comments Action required Action completed Y/N Mario Taranto Quarterly Survey Call responsiveness lacking substantially. Average 2-3 days before response received Training for staff on customer service policy. A review of customer service policy may be required. Assign specific broker to case Y Dan Wong Quarterly Survey Very happy with Home Loan products recommended Issue response to Dan: “Thanks for letting us help you through the homeloan process. We look forward to working with you in the future” Y Yarran Danggetti Quarterly Survey ‘very unprofessional’ response to email queries Follow up with Yarran for details on the queries she sent and the Y Document classification: Confidential Page 43 of 135
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response she received to get a better understanding of the issues, apologise for experience so far, build a solution to rectify (b) After receiving less than ideal feedback, I would call the customer personally and follow up again. The idea is to let them know we have taken their feedback seriously, and it also conveys that they are important to us Assessor feedback Resubmission required? Document classification: Confidential Page 44 of 135
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Part 2 (a) Referring to the areas of concern in the survey responses above, write a customer service improvement report including: • three (3) areas where customer service can be improved. (What) • a minimum of two (2) actions that would be required to implement the improvements. (How) • a list of the stakeholders that would need to be consulted to implement the improvement, and an explanation of how you would communicate this with the stakeholders. (Who) (b) Write an email to a stakeholder identified in the table below explaining your recommendation and how it will improve the area of customer service. (100 words) Hint/Tip: Draw on your current and/or past experiences to answer this question. Refer to the Toolbox for examples of customer service standards. You may also use the example business profile of CCF & MB to answer this question. It is preferable that you relate the areas of customer service to the finance and mortgage broking industry. You also may need to conduct your own research. Student response to Task 7: Question 2, Part 2(a)–(b) Answer here (a) Area for Improvement Steps/Actions to implement improvement the improvement (min of two (2) actions) Communication to Stakeholders (name the stakeholder by role) Time frame to complete 1. Response Times - Update Customer Service Policy to reflect a 2 hour turnaround target for returning phone calls and a 24 hour turnaround target for emails - Issue memo for all staff regarding the update to the CSP - If you need to issue a detailed response but do not currently have time, advise the customer that you have not forgotten them and will get back to them ASAP Managing Director, Brokers, Admin Staff Immediate 2. Email Etiquette / writing skills - Any emails sent must be professional and personable in both tone and content. - Responses that are accusatory, abrupt, blunt or sarcastic are considered unprofessional and will be dealt with upon being reported Managing Director, Brokers, Admin Staff One Week 3. Staffing Levels - Employ more brokers to cope with increased demand if required Managing Director One Month Document classification: Confidential Page 45 of 135
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- Employ more administrative staff to take care of Urgent/Not Important work to free up broker time (b) Dear Managing Director RE: Customer Feedback Surveys After going through the responses from the most recent Customer Feedback Survey I have found a couple common themes: 1. We’re not responsive enough to customers either over phone or email 2. Our responses can be considered ‘unprofessional’ in some cases There may be a number of issues causing these problems, however one that might be considered is that our broking team are running short on time, meaning they’re not getting to their emails and message because they’re getting bogged down in the applications and paperwork, and this could potentially be causing a ‘rushed’ response. Needless to say a rushed response can lead to a bad reputation AND potential legal liability on bad advice. I think that we should consider two things as a potential response: 1. Updating the customer service expectations with specific timeframes for the response to a phone call or email 2. Looking at putting one either more brokers, if we find there is demand for the skillset, or admin staff should we find that we can have the brokers delegate their less important/unqualified tasks to administrative staff In order to get more detail on this, I think we should look at the brokers’ KPIs as I think we might get more insight by looking at the Pull Through rate and Average Cycle time for the brokers collectively. I look forward to your insight. Thanks Mike Assessor feedback Resubmission required? Document classification: Confidential Page 46 of 135
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Task 7: Question 3 (a) How can you and your team monitor the level of customer satisfaction in your workplace in line with the service standards set? (b) Provide two (2) suggestions for ensuring that team members are accountable for the customer service standards in the workplace. (75 words) Student response to Task 7: Question 3(a)–(b) (a) Reporting on customer feedback on a frequent basis using both qualitative and quantitative metrics to see how many feedback items have been received and also what areas they relate to. This would allow you to see if there’s a trend coming through on something like responsiveness, or otherwise more feedback coming through on a particular broker that you can either use to reward them or improve their performance (b) 1. Implement KPIs relating to feedback score 2. Regular reviews to assess and reward/address performance on customer satisfaction KPIs and also any particular feedback given by a customer. Assessor feedback Resubmission required? Task 7 — Assessor feedback: You have demonstrated a good understanding of the topics covered in this task question and achieved competency. Date assessed: Click here to enter a date Does the student need to resubmit? Questions that need to be resubmitted First submission Resubmission To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Document classification: Confidential Page 47 of 135
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Task 8 ― Respond and report on complaints Task 8: Question 1 Refer to the Toolbox in your subject room for Policies and Procedures and links regarding handling complaints and disputes, and respond to the following questions based on those documents: (a) Who should a client refer their complaint to in the first instance? (b) In accordance with the Banking Code of Practice, if a provider of financial products and services is unable to provide a resolution within 30 days, what are the five (5) steps they must take? (50 words) Student response to Task 8: Question 1(a)–(b) (a) The broker with whom they’ve been dealing with. (b) 1. Inform you of the reasons for the delay 2. Provide you with a date on which you can reasonably expect an outcome of your complaint 3. Provide monthly updates on the progress of your complaint 4. Advise you that you can take your complaint to the Australian Financial Complaints Authority (AFCA) 5. Provide you with their information Assessor feedback Resubmission required? Task 8: Question 2 Consider the following scenario. Mr Joseph Harper, a new customer, has called your office and has complained about the time it is taking to receive a decision on his loan application, which was submitted 10 days ago. The average turnaround time with the lender Joseph has applied to for a loan is 14 working days. Additionally, the loan requires lenders mortgage insurance (LMI), which could add a further two days to the assessment time frame. The client is getting anxious as he has made an offer on a property subject to finance. There is only 14 days from date of offer to confirm finance approval before the property will go back on the market, so he is very worried he may miss out on the property. (a) Describe the steps you will take to resolve this complaint. Include the stakeholders you will refer to in the resolution process. (b) Describe the resolution you will communicate to Joseph. You may refer to the Toolbox for Policies and Procedures regarding handling complaints and disputes. (80 words) Document classification: Confidential Page 48 of 135
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Student response to Task 8: Question 2(a)–(b) (a) 1. Get in touch with Joseph and confirm that the complaint has been received, clarify the content of the complaint to ensure I understand it fully, and that I will call the lender to get an update on the loan application. During that conversation I would note that 10 days would be an extremely quick timeframe to process a loan application, especially with that lender, who normally takes 14 days for a straight forward loan with no LMI. I would enquire as to whether he was notified about that when submitting his application. 2. Get in touch with the lender and confirm the status of the application, try to get an estimated date of when a decision will be reached on it and ask if it’s possible to expedite the application as there is a very tight settlement deadline on the property 3. Call Joseph back with any immediate responses from the lender. Advise him that they will have their own escalation processes in place but I will keep him informed as information comes to me. 4. Record the complaint and interactions in the company CRM system 5. Escalate to my manager, as the 5-day complaint resolution window falls outside of the settlement term of the property (b) Upon the lender coming back to me and stating that the loan is still being processed, I would pass that long to Joseph together with that I asked for it to be expedited due to the tight settlement. I would advise him that there’s currently nothing else we can do from our end, but should he want to take the matter further or feel that we have not treated him fairly, then he is welcome to contact AFCA. Assessor feedback Resubmission required? Task 8: Question 3 Complete the customer report below based on the scenario in question 2. Document classification: Confidential Page 49 of 135
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Student response to Task 8: Question 3 Customer complaint report Customer name Title (Mr, Mrs, etc.) Family name (surname) Given names Mr HARPER Joseph Service being provided to client: Finding and securing a residential property loan Nature of complaint: Loan is taking too long to be processed; settlement is pending, and he is worried the loan won’t come through in time for settlement Outcome: Upon calling the lender, was advised that the loan is still being processed and is still within an acceptable processing timeframe. I have asked them to expedite. Have called Joseph and advised that there’s currently nothing else we can do from our end, but should he want to take the matter further or feel that we have not treated him fairly, then he is welcome to contact AFCA. Otherwise I will keep him abreast of progress as I am informed. Assessor feedback Resubmission required? Task 8 — Assessor feedback: You have demonstrated a good understanding of the topics covered in this task question and achieved competency. Date assessed: Click here to enter a date Does the student need to resubmit? Questions that need to be resubmitted First submission Resubmission To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Document classification: Confidential Page 50 of 135
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Task 9 ― Sourcing new clients Finding potential customers is necessary to ensure the stability and growth of a business. Task 9: Question 1 (a) What communication methods can be used to source for new clients? (b) How might your communication methods differ for prospective clients when using your existing networks? (c) Explain how you could utilise your Networks for lead generation and grow your business. (30 words) Student response to Task 9: Question 1(a)–(c) (a) Marketing Emails, Printed Material, Social Media Posts, Online Advertising, Cold Calling (b) When networking, you’ve already got a basic level of rapport through the referral partner, so you’re not approaching unsolicited or through blanket communications. When this is the case, the communication becomes a lot more personal and helpful to the customer right from the start (c) The past customers network is the easiest path of referral business as new customers have spoken to past customers who have already received exactly the service they’re in the market for. Professional networks are where you can develop referral partners such as accountants and real estate agents who can refer their customers to you. A positive experience here can easily feed into the past customer network Assessor feedback Resubmission required? Task 9: Question 2 Refer to the Toolbox and the ‘Guidelines when contacting potential new customers’ and answer the following questions: (a) What are the four (4) steps you must include in your introduction when making a call to a potential new customer? (b) Following your introduction, what important question must you ask before continuing with your call? (c) What should you do if the person you contact, advises you that they do not wish to continue the call and they do not wish to be contacted again? (30 words) Student response to Task 9: Question 2(a)–(c) (a) 1. Greeting 2. Your name 3. Your organisations name and location 4. Purpose of the call (b) Permission to continue with the call (c) Thank the prospect and conclude the call. Enter client details into the Prospecting Register and add a tick into the ‘Do not call’ column, to advise that the client does not wish to be contacted in the future. Document classification: Confidential Page 51 of 135
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Assessor feedback Resubmission required? Document classification: Confidential Page 52 of 135
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Task 9: Question 3 You have made two (2) calls to potential new clients. As per the guidelines when contacting potential customers located in the Toolbox, complete the client contact register below for the following scenarios: (a) Call 1: You made a call to Rosie Abdul. Following your introduction, Rosie agreed to continue the call. Rosie has been considering refinancing her home loan and seeking an increase to her loan so as she can renovate her kitchen. Rosie also said that the task of doing the research for different lenders seems too daunting. She is not quite ready to begin the process, but she is interested in how your brokerage could assist her. Rosie asked if you could call back in three months. (b) Call 2: You just called Bruce O’Connor and introduced yourself and provided the purpose of the call. You asked Bruce permission to proceed with the call. Bruce advised that he was not interested and did not want to receive calls from your firm in the future. Student response to Task 9: Question 3(a)–(b) Potential Client Contact Register Name Date Contact method Comment/outcome Follow up required (Y/N) Follow up date Do not call (a) Rosie Abdul 5/9/23 Phone Call Looking at refinancing to renovate kitchen in approx. 3. Months Y 5/12/23 N (b) Bruce O’Connor 5/9/23 Phone Call Not interested, does not want to receive calls N NA Y Assessor feedback Resubmission required? Document classification: Confidential Page 53 of 135
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Task 9: Question 4 Refer to your contact with Rosie Abdul in Question 3. Three months has now passed, and you need to call Rosie back. Explain how you will prepare for your next call with Rosie. Include the following: (a) The information you will require from Rosie. (b) The information you should provide to Rosie about how your brokerage firm can assist her and a brief outline of the application process. (80 words) Student response to Task 9: Question 4(a)–(b) (a) In order for Rosie to qualify past the initial phone call we would have to verify if/that: - she is now in a position where she is seriously looking into the kitchen renovation - she is in a position where she has enough equity in the property to refinance with a larger loan (whilst ideally avoiding LMI). - Rosie herself is to be the loan applicant and also holds the title to the property to be used as collateral. - there are other parties with legal standing on the loan or the property? What is their interest/perspective? - what features Rosie is looking for on a loan/what she currently has - any previous credit issues that would impact on the loan application (b) - range and limitation of services provided by the brokerage, including the main scope of clientele - outline of application process (4 steps and what to expect at each stage) - initial screening/information call with what she’s looking to achieve with the loan, her approximate income and the loan size she’s looking to increase to. A face to face meeting to be arranged and information provided on what to bring to it (payslips, expenditure info) - face to face meeting application to be filled out requiring full financial details, including payslips and expenditure approximation, current loan details. Complaint process outlined here - application submitted inform Rosie about how long this would normally take, and what she could expect if it’s approved vs if it’s declined - settlement (if applicable) what documents or information is required and how it usually takes place Assessor feedback Resubmission required? Task 9: Question 5 Refer to the Toolbox for the link to the following article in Industry information — useful links: ‘15 Creative Ways to Acquire New Clients’. Explain the key points to acquiring new clients. (80 words) Document classification: Confidential Page 54 of 135
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Student response to Task 9: Question 5 1. Show how you can add value to their lives and how you can help solve their problems 2. Craft a business reputation/personality through how you deal with customers and who you want to target 3. Figure out where you clients frequent, and create a presence there 4. Interview your ideal customer to find out more about what makes them tick. This information can be useful for farming new clients 5. Engage in pro-bono work to get your name out there and improve your reputation 6. Ask for referral and reviews from happy clients, and leverage word of mouth where possible 7. Join community social media pages and be as active as you can on them Assessor feedback Resubmission required? Task 9 — Assessor feedback: You have demonstrated a good understanding of the topics covered in this task question and achieved competency. Date assessed: Click here to enter a date Does the student need to resubmit? Questions that need to be resubmitted First submission Resubmission To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Document classification: Confidential Page 55 of 135
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Task 10 — Professional networks You build on your network base each day at work as you interact with your colleagues, and internal and external stakeholders. You even build networks in your social life. Networks and professional connections are important as they can be helpful in building on your industry knowledge, your career development and also to grow your business. Hint/Tip: Watch the video ‘Networking for Success’ — the link is in the Toolbox. Internal networks — people you know and connect with inside your organisation, for example, colleagues, people from other departments. External networks — people you know and connect with outside of the organisation, for example, other professionals who do not work in your organisation that are aligned with your work, industry associations, family, friends, sporting clubs, social clubs, committees, children school, social/professional media platforms. Task 10: Question 1 (a) Identify and make a comprehensive list (minimum of ten (10) internal and external networks). This can include networking groups and/or associations. List people by their role rather than their names — if you are not currently working, you can list the networks you would have in a mortgage broker role. (b) From the list you created in part (a), choose six (6) networks. At least one (1) must be from the financial services industry and one (1) must be a third-party referrer. The others may be from any other connections. Complete the table below by outlining how your connection with these networks is of benefit to you and to the broking business. (c) From the list in Part (b), choose three (3) connections/networks. Explain how you develop and maintain those relationships. Include how you will stay in contact and also how you will enhance the relationship to ensure it remains mutually beneficial. (d) Identify and explain the importance of three (3) communication channels and tools that you use to develop and maintain professional relationships. (100 words) Document classification: Confidential Page 56 of 135
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Student response to Task 10: Question 1(a)–(d) (a) Internal Networks 1. Fellow Brokers 2. Administrative Assistants 3. Compliance Manager External Networks 1. Harcourts Marketplace (Oxley) 2. Local Bank Branch Managers 3. Bank Business Development Managers 4. MFAA Members / FBAA Members 5. Western Districts Netball Association (Graceville) 8. Sherwood Districts Australian Football Club 9. Graceville State School / Oxley State School 10. Professionals Real Estate Oxley (b) Network Benefit You 1. Bank BDMs Increase product knowledge and help to find best solution for customer 2. Fellow Brokers Can bounce ideas off them, gain knowledge from their experience Network Benefit to the business 3. Harcourts Marketplace Referrals from an aligned industry to generate revenue 4. Local Bank Manager Help sort out any urgent banking issues for the customer. Can therefore speed up process for the business 5. Sherwood Districts AFC Sponsoring an award may increase exposure for the business resulting in new clients Network Benefit to the business 6. MFAA/FBAA Members Can help answer questions related to compliance or provide business advice on related aspects of the business (c) Network/connection — Name Type of network/connections Actions you take to develop and maintain the relationship 1. Harcourts Marketplace External – aligned industry Keep in frequent contact, refer clients to them, attend similar events to learn more Document classification: Confidential Page 57 of 135
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about their industry and how you can help them 2. Other brokers Internal Develop personal relationship and seek advice, help with workload 3. Sherwood Districts AFC External – community club Attend events, sponsor awards, volunteer time (d) Communication method What are the positive features of this method (why might you use it)? 1. Social Media Make a connection, share relevant articles, find out mutual friends you share to promote more connections, become a member of community groups. A positive of this method is that you can gain a lot of insight and information without having to directly interact with people 2. Email Send through referrals, follow-up informally on events that you recently attended together, share articles and knowledge. A positive about this channel is that you have a written record to reflect on 3. Phone Organise a meeting, ask a question, ask probing questions to help you understand the other person. A positive about this method is that it is very fast Assessor feedback Resubmission required? Document classification: Confidential Page 58 of 135
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Task 10: Question 2 Explain how you will maintain policy, regulations and codes of practice when networking to promote your business and enhance its reputation. Include how you would present yourself, communicate and maintain client confidentiality. (30 words) Student response to Task 10: Question 2 Networking is about building connections and happens different ways depending on the context. It’s very important to look the part, which at a networking event might be a suit and tie, but at a local football game might be a polo shirt and shorts. It’s important to communicate through a channel/method that is relevant to your audience: at a professional event you might obtain a phone number or an email to use on follow up, but SMS may be considered inappropriate, whereas at a local football game the relationship developed may be a little more personal so an informal SMS as a follow up may be appropriate. Among the most important things to be mindful of when networking is to treat everyone with respect and to actively listen to what they’re saying. These are important as they are reflecting on your and your businesses reputation Assessor feedback Resubmission required? Task 10: Question 3 (a) Identify two (2) practices that could be implemented to improve business practices when it comes to developing and maintaining networks. (b) Explain which personnel you would involve in reviewing your network connections to ensure that they are appropriate for your business’ needs and why you would involve them. (75 words) Student response to Task 10: Question 3(a)–(b) (a) 1. A follow-up turnaround rule. When you make a contact, you must follow-up within 2 days of the initial meeting 2. Follow-up with referred clients to ensure they are having their needs fulfilled. If the response is frequently no, then it might pay to review the organisation or contact in your network that you are referring to as it is poorly impacting on your business (b) Managing director as they may have a personal connection to the referral partner, Administrative assistants as it can be part of their job to follow up on referrals made, if they are recorded in a referral register Assessor feedback Resubmission required? Document classification: Confidential Page 59 of 135
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Task 10 — Assessor feedback: You have demonstrated a good understanding of the topics covered in this task question and achieved competency. Date assessed: Click here to enter a date Does the student need to resubmit? Questions that need to be resubmitted First submission Resubmission To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Document classification: Confidential Page 60 of 135
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Task 11 ― Managing information Working as a broker in the financial services industry can involve working for a large or small organisation. A comprehensive understanding of the organisation’s structure, management, processes and policies is vital for success. Refer to the Capital City Finance and Mortgage Brokers (CCF & MB) — Future developments, Business profile located in the subject room. CCF & MB have hired a new sales team member, and you are responsible for completing the induction program. Task 11: Question 1 Briefly explain how CCF & MB access information regarding updates to products and services in their system. (50 words) Student response to Task 11: Question 1 CCF&MB staff could access updated information on products during the fortnightly credit and compliance training. As part of this training, representatives from the lending panel or alternatively Australian Aggregators might be able to present on new products and updates to their current product range. Further, each product would have its own Terms and Conditions which could be reviewed upon recommending a product to a customer. Product details and Ts&Cs are freely available from aggregators and lenders. Information on lenders and loans would also be available on the lenders website Assessor feedback Resubmission required? Task 11: Question 2 Managing information in a mortgage broking firm may also apply to maintaining and upkeeping compliance and licences. Refer to the Australian Securities and Investment Commission’s (ASIC) website to answer the following question. Australian credit licence holders are required to complete an Annual Compliance Certificate and lodge it with ASIC. Hint/Tip: You will be required to conduct your own research — Refer to the Toolbox and ASICs website. When completing the Annual Compliance there is specific information required to be provided to ASIC upon lodgement. List the five (5) items that are required to be confirmed on the Annual Compliance Certificate. (75 words) Document classification: Confidential Page 61 of 135
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Student response to Task 11: Question 2 1. Licensee knows when their next ‘annual compliance date’ is, and when the lodgement is due 2. All Licensee details on the Australian credit registers are current 3. All ‘fit and proper’ people nominated on the license have had background checks conducted 4. I am aware of my obligations as a credit licensee and am ready to certify that I have complied with them 5. I have information about any new responsible managers so that I am ready to include their qualifications and relevant work experience in my annual compliance certificate. Assessor feedback Resubmission required? Task 11 — Assessor feedback: You have demonstrated a good understanding of the topics covered in this task question and achieved competency. Date assessed: Click here to enter a date Does the student need to resubmit? Questions that need to be resubmitted First submission Resubmission To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Document classification: Confidential Page 62 of 135
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Section 3: The lending process Task 12 ― Understanding the client’s needs Brokers have both ethical and legislative obligations to understand both a client and a potential client’s needs and objectives. There are obligations for making reasonable inquiries and verifications under NCCPs responsible lending obligations contained in ASIC’s Regulatory Guide 209 (RG209). Research RG209.43 online and answer the following questions. Task 12: Question 1 While it is important to understand your client’s needs and objectives to ensure that you recommend a product that has all of the features and benefits they require, it is also important to understand other requirements your client may have to ensure the product recommended is ‘not unsuitable’. (a) List at least four (4) types of ‘specific customer requirements’ your client may have. (b) Give an example of when a product recommendation would be ‘unsuitable’. Hint/Tip: Refer to your topic notes and/or conduct your own research. Choose requirements that may not necessarily be a product feature, for example, a client may want a lender that they can visit or may need to sell the property in a specific time frame. (20 words) Student response to Task 12: Question 1(a)–(b) (a) 1. A lender with a short application/approval/settlement process 2. A broker with a large lending panel due to a specific requirement 3. A short settlement as the seller has purchased another property subject to the sale of this one 4. A long settlement to allows the sellers time to move out (b) When there is a 14-day settlement on the property, but finance might not be obtainable from the ideal lender that quicky. That would make products from that lender unsuitable. Assessor feedback Resubmission required? Document classification: Confidential Page 63 of 135
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Task 12: Question 2 When the loan is for a self-employed person, the lender will ask for financial information for the business. What are the common financial records the lender will ask for? Provide a minimum of three (3). (These must be in addition to what a PAYG client would provide.) (20 words) Student response to Task 12: Question 2 1. Business and Personal tax returns 2. Business financial statements (balance sheet & profit and loss statements) 3. ABC/CAN certificates 4. Business bank statements Assessor feedback Resubmission required? Task 12: Question 3 (a) Explain the information that is contained in a credit report. (b) Why it is important that the client provides all the details about their credit report to their broker at the beginning of the loan process? (c) What are the credit provider’s obligations to the client if a loan is declined due to their credit report? (d) What would you advise your client to do if their loan was declined due to their credit report? (80 words) Document classification: Confidential Page 64 of 135
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Student response to Task 12: Question 3(a)–(d) (a) Current credit obligations/credit judgements against you/dafaults/repayment history/bankrupt history/hardship arrangements with lenders. These are some of what’s included in a credit report in order to allow a potential lender to gauge the risk them not being repaid the money which they lend you (b) If details are missing then any applications made by the broker may be voided or loans forfeited when those details come to light, potentially under a fraud circumstance. These things will also potentially prejudice a lender from providing credit (c) The credit provider must tell the applicant the reason for declining the application and give the applicant the name and address of the credit reporting agency. They must also tell the applicant that they have the right to access the agency’s file. This requirement is provided for in the Privacy Act (d) I would advise them to get a copy of their credit report from Equifax and figure out what on their credit report declined the loan, then if appropriate I would advise them to spend the next period of time repairing the credit by paying their bills on time to give them the best chance of acquiring the loan next time around (d) I would advise the client that we can try a different type of lender, perhaps a non-bank lender that specialises in loans to people with bad credit but I would also inform them that the interest rates and fees could be notably higher than they would with a normal lender as the specialist lender must account for their risk in writing the loan and accordingly the client needs to consider if the loan is really going to help them achieve their goals. Assessor feedback Resubmission required? Q12.3d Competency not yet Demonstrated Insufficient explanation. What would you advise your client to do if their loan was declined due to their credit report? What type of lender can you refer them to? Reference: Topic 3-3 Part 2 The initial loan application Task 12 — Assessor feedback: [insert feedback] Date assessed: Click here to enter a date Does the student need to resubmit? Questions that need to be resubmitted 12.3d First submission Resubmission To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Document classification: Confidential Page 65 of 135
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Task 13 ― Developing and presenting solutions Task 13: Question 1 The client solution is not just about providing a product that will meet their product needs. Developing a solution for your client’s needs also involves the security or collateral that the lender will require for that loan product. (a) List a minimum of three (3) types of assets that lenders may take as collateral to secure a loan. (This can be security for either consumer or commercial lending.) (b) List a minimum of two (2) security documents that are required in order for the lender to have control over the asset while the loan is in place. (c) If a director offers their home (in their personal name) as security for lending in their company name, what is the name of the security document that is required to link the asset to the loan? (d) From time to time a client may need to offer a second property to support a loan in order to reduce the loan-value-ratio (LVR) to avoid LMI and meet lender requirements. What is this name of this practice? (50 words) Student response to Task 13: Question 1(a)–(d) (a) Real Estate, Business Equipment, Inventory, motor vehicles (b) Registered Mortgage, General Security Agreement, Personal Guarantee, Interest registered on PPSR (c) Personal Guarantee (d) cross-collateralisation Assessor feedback Resubmission required? Task 13 — Assessor feedback: You have demonstrated a good understanding of the topics covered in this task question and achieved competency Date assessed: Click here to enter a date Does the student need to resubmit? Questions that need to be resubmitted First submission Resubmission To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Document classification: Confidential Page 66 of 135
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Task 14 ― Packaging the application to send to the lender Packaging a home loan application is detailed and requires a mortgage broker to gather documents to prepare the lending submission in accordance with the lender’s requirements. While it is important to know what documents you will need to gather, it is also important that you understand the information contained within the documents. For example, the frequency of income, if overtime is included. Task 14: Question 1 (a) Explain what documents you would gather to in order to verify: (i) a PAYG employee’s income (ii) a self-employed person’s income (iii) rental income for an existing investment property. (b) Choose three (3) documents that you listed in part (i). Write one (1) question that you could ask the client to confirm you understand the information contained within each of the documents provided. (60 words) Student response to Task 14: Question 1(a)–(b) (a)(i) 2 x Payslips substantiating 3 months income as a minimum; most recent 3 months worth of bank statements showing salary deposits coupled with employment contract; most recent ATO notice of assessment/group certificate/tax return (a)(ii) ATO notice of assessment relating to the most recent years’ worth of income; annual financial statements signed by directors for 2 consecutive years coupled with personal tax returns for directors ( a)(iii) most recent property managers statements; most recent bank statements showing rental income for minimum 3 months (b) Document One (1) question to confirm information with your client 1. Pay slips So your salary payment frequency is fortnightly? 2. Bank Statements One regular salary and contract indicates a single employer? 3. ATO NOA So you have three methods of income, a salary, investment dividends and income from a rental property? Assessor feedback Resubmission required? Document classification: Confidential Page 67 of 135
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Task 14: Question 2 When submitting your client’s loan application, you also need to submit supporting documentation. (a) Explain how you confirm that you have the correct supporting documents for your client’s loan requirements in accordance with the lender’s requirements. (e.g. If the loan application was for an investment property, think of what may be required as specific supporting documents) (b) Explain how you check the supporting documentation for accuracy and also to ensure that the documents are in the right format and legible for the lender. (40 words) Student response to Task 14: Question 2(a)–(b) (a) Consider what documents would be needed to verify the income to repay the loan. i.e. If the loan is for an investment property then proof of rental income would be required (property management statements), or otherwise if it’s for a residential property then proof of PAYG or self-employed income would be required (payslips or financial statements). Requirements may differ by lender, so it’s possible to contact the lender to confirm what’s required if necessary (b) You can use documents to cross-check each other, i.e. payslips can be verified by looking at a bank statement for the same period, a call could be placed to an employer to verify employment, a searched could be done on the business register to confirm directorship of a business, financial statements should line up with tax returns Assessor feedback Resubmission required? Task 14 — Assessor feedback: You have demonstrated a good understanding of the topics covered in this task question and achieved competency Date assessed: Click here to enter a date Does the student need to resubmit? Questions that need to be resubmitted First submission Resubmission To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Document classification: Confidential Page 68 of 135
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Task 15 ― Monitor the lending process Some loan applications may require further information following submission. This often means returning to the client to obtain the information. Task 15: Question 1 Provide one (1) example of further information a lender may request. Explain common reasons for the additional information. (30 words) Student response to Task 15: Question 1 Additional information may be required when the information provided is inconsistent with information already held or is far outside the scope of what’s expected. A lender may request clarification of any undeclared credit issues , or any undeclared credit enquiries for the last 12 months to confirm if the loan was taken up Assessor feedback Resubmission required? Task 15 — Assessor feedback: You have demonstrated a good understanding of the topics covered in this task question and achieved competency Date assessed: Click here to enter a date Does the student need to resubmit? Questions that need to be resubmitted First submission Resubmission To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Document classification: Confidential Page 69 of 135
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Section 4: Case studies Case study 1: Philip and Jennifer Brown The case study is located in the subject room in KapLearn. Often client meetings occur in the form of a face-to-face meeting, typically at the broker’s office or in the client’s home or workplace. As technology has developed, it has made different forms of client contact possible using software such as Zoom. Conducting online meetings has become more acceptable and can also be quite convenient for some clients. Task 16 ― Case study: Purchasing an owner-occupied home It is time to prepare to meet with your first client, Philip and Jennifer Brown. As the broker, you need to consider a range of obligations when dealing with a customer. This section will consider some of these obligations. Task 16: Question 1 You have just made an appointment over the phone to meet with Jennifer and Philip. Prepare an email outlining the purpose of your first meeting. In the email, make sure you also cover the following points. (a) What documents would you attach to the email? (b) Include the following information in your email: (i) the services, values and capacity your organisation has to offer (ii) your background, credentials and your role as their broker (iii) the commercial relationship that your firm has with the product providers (i.e. the lenders on your panel). (50 words) Hint/Tip: You can base your response to Part (b) on the CCF & MB business (Business profile) located in the subject room. Student response to Task 16: Question 1(a)–(b)(i)–(iii) Good Morning Jennifer and Philip, Please find attached the following documents. *Company Profile; *Responsible Lending Questionnaire; *Credit Guide; *Privacy Statement and Consent Document. Could you please complete and return the Responsible Lending Questionnaire and the Privacy Consent Documents prior to our meeting. LoanBrokers was founded just over 10 years ago and is built on the values on integrity, intelligence, and ingenuity. At our current stage we provide mortgage and insurance broking together with financial planning services and have 20 employees. My role within the company is as a mortgage broker. I’ve completed my Cert IV in Mortgage Broking and have been a Loan Administrator for a couple of years so I’m quite aware of the ins and outs of considering Document classification: Confidential Page 70 of 135
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your circumstances and what kind of deal might be the right fit for you guys with where you want to go at this stage in life. LoanBrokers has a panel of 40 lenders whom we source our deals through, we have a great reputation with these lenders through having done many deals through them. Our business gets paid a commission by them when we successfully settle mortgages, instead of being paid by yourselves, so the relationship we have with them is commercial. Normally you might think that it makes us partial to those lenders who offer the largest commission, however, not only is is you guys that make the final decision, but we also have what’s known as a ‘Best Interests Duty’ under the law, which means we are legally obliged to act in your best at all times. I’m looking forward to meeting you guys in person on Monday. Kind Regards, Mike Assessor feedback Resubmission required? Task 16 — Assessor feedback: You have demonstrated a good understanding of the topics covered in this task question and achieved competency Date assessed: Click here to enter a date Does the student need to resubmit? Questions that need to be resubmitted First submission Resubmission To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Document classification: Confidential Page 71 of 135
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Task 17 ― Completing the fact find Task 17: Question 1 From the information in Case Study 1 for Jennifer and Philip Brown, complete the following tasks. (a) Using the client information collection tool/fact finder below, complete: (i) assets and liabilities (ii) needs analysis (iii) credit representative notes (iv) anticipated fees and charges (v) funds to complete. Student response to Task 17: Question 1(a)(i)–(v) Client information collection tool/Fact finder For the client information collections tool/fact finder tasks, you will need to calculate government fees and charges as well as LMI where applicable. For this assignment, Helia, (formerly Genworth) is your lender’s LMI provider. Please use the Helia LMI calculator for all LMI calculations. There are links provided in the Toolbox to help you calculate the applicable fees and charges. Appointment date: 09/10/2023 Appointment time: 6pm Applicant 1 Applicant 2 Surname Brown Brown Other names Jennifer Philip Contact details Address Unit 12, 22 Wentworth Lane, Thomastown VIC 3074 Unit 12, 22 Wentworth Lane, Thomastown VIC 3074 Phone (W) Phone (H) NA NA Mobile 0412 987 654 0419 123 456 Email jbrown@techcity.com.au philipb@ace.com.au Employment Tech City, 804 High Street, Docklands VIC 3008 ACE Limited, 101 City Road Westside, Melbourne VIC 3000 How long? 11 Years 12 Years Previous employer (if less than two years) NA NA How long? NA NA Employment type (FT/PT/casual/self-employed) Full-Time Full-Time Gross income (p.a.) $95,000pa $58,000pa Document classification: Confidential Page 72 of 135
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Applicant 1 Applicant 2 Number of dependants 0 0 Motor vehicles: make/model/year/value $ Kia Cerato Sport, 2015, $9,000 Holden Colardo, 2012, $25,000 Loan purpose Primary Residence Purchase Purchase price/valuation $490,000 Deposit on property $50,000 Loan amount $440,000 + LMI of $9,430 = $449,430 Borrowing capacity (using Helia serviceability calculation) $833,317 Document classification: Confidential Page 73 of 135
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Assets and liabilities Assets Liabilities Details Market value Details Monthly payments Amount owing Owner occupied property at: NA Mortgage with: NA NA Investment Property at: NA Mortgage with: NA NA Cash at bank (includes fixed deposits) $83,600 Car leasing NA NA Other cash (includes offset accounts) NA Personal loans 1. 2. $180 $5600 Deposit paid on property (only if paid) NA Overdraft NA NA Motor vehicles: 1. 2. $9,000 $25,000 Other loans: 1. 2. NA NA Personal effects $40,000 Credit card limit: $5,000 $150 $,1600 Business value (if self-employed) NA Credit card limit: $4,000 $120 $200 Shares and investments NA Other: NA NA Superannuation $90,000 Other: NA NA Other assets (give details) NA Other: NA NA Total assets $247,600 Total liabilities $450 $7,400 Surplus/deficiency: (Total assets less Total liabilities) $240,200 Document classification: Confidential Page 74 of 135
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CURRENT MONTHLY LIVING EXPENSES (Provide a breakdown of the total amount listed in the case study — use your discretion) Food/housekeeping $1,600 Insurance (e.g. motor vehicles, home contents/ building, medical, life/income protection) $300 Utilities (e.g. rates, gas, electricity, transport) $406.67 Transport (e.g. public transport, petrol, registration, repairs) $400 Education (e.g. school, college, university) NA Dependants support (e.g. childcare, child maintenance) NA Entertainment (include online subscriptions, e.g. Netflix/Stan) $30 Other (detail below): MISC $180 MONTHLY LIVING EXPENSES $2,916.67 Document classification: Confidential Page 75 of 135
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Needs analysis 1 Name of your current lender? Nil 2 What type of loans do you have? Nil 3 Why did you choose this particular loan and lender? Nil 4 What is the interest rate on your current loan? Nil 5 What are your payments? Amount Nil 6 Frequency Nil 7 Do you know the fees and charges? Nil 8 What is your proposed purpose for the new loan you are applying for? Purchasing an existing property 9 Branch access available with current lender NA 10 Internet banking available with current lender NA 11 Phone banking available with current lender NA 12 Lenders not to be considered Nil 13 Type of loan sought Premium Homeloan – P&I 14 Preferred Interest rate range 3.8 – 4.2% variable (perhaps split for certainty) 15 Payment frequency Fortnightly 16 Redraw Yes 17 Offset Yes 18 Salary crediting Yes 19 Low fees and charges Yes Document classification: Confidential Page 76 of 135
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Credit representative notes Note: Providing substantive notes here is a compulsory part of your assessment. -Stamp Duty exemption does not apply as Jennifer has previously owned a property -LMI capitalised premium is $9,430 per Helia calculator -30-year term, variable rate considered but for certainty might consider a split loan. -Pre-approval may be required as an offer to be made on property within 10 days -No valuation fee, as initial fee covered by bank -no application fee as waived by bank under special offer -no previous mortgage on property, so no discharge fee applicable -no extra searches selected, so no search fees applicable -no land tax applicable as it’s a principal place of residence, not an investment or vacant lot -no rates notice for period provided, so unable to obtain breakdown as to what portion of rates would be due to seller at settlement -Documents obtained at interview: Philip and Jennifer Drivers licences 3 x Payslips for both Philip and Jennifer 6 months bank statements, 6 months credit card statements UNSIGNED contract of sale (no offer placed yet – 10 day window) Document classification: Confidential Page 77 of 135
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Anticipated fees and charges Anticipated purchase price $490,000 Deposit on property $50,000 Total Loan amount $449,430 LVR % 89.78% (excl. LMI); 91.72% Purchase costs $21,370 - Not waived as it’s not Jennifers first property Stamp duty – Transfer of Land Transfer of Land fee $1,242.60 Solicitor/conveyancer fee $1,500 Rates and land taxes (estimate) $0 – principal place of residence, not investment or vacant land Pest inspection (estimate) $400 Building inspection (estimate) $495 Borrowing costs $0 – waived under special offer Application/establishment fee Valuation fee $0 – initial valuation fee covered by lender Security admin. fee $0 – only payable should the security for the loan be changed LMI $9,430 Registration of mortgage $118.90 Discharge/Release of mortgage fee $0 – Not applicable, nothing in notes to suggest previous owners had mortgage on it and Brown’s are purchasing not refinancing Search fees $0 – covered in conveyancing charge Other $0 Total purchase and borrowing costs $524,556.5 Document classification: Confidential Page 78 of 135
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Funds to complete PURCHASE AND LOAN COSTS AVAILABLE FUNDS Purchase price: $490,000 Deposit if already paid to agent: $0 Lender application/valuation fees: $0 Cash savings: $77,000 Stamp duty payable ― Transfer of Land $21,370 Sale proceeds: $0 Registration fee ― Transfer of Land $1,242.60 Registration of mortgage ― Land Titles Office https://www.land.vic.gov.au/ land-registration/fees-guides- and-forms/transfer-of-land-fees- calculator $118.90 Gift: $0 Solicitors fees: $1,500 FHOG: $0 Other $1,650 Other: $0 Lenders mortgage insurance ― added to loan $9,430 Other: $0 TOTAL COSTS (A): $524,556.50 TOTAL OWN FUNDS (D): $77,000 LOAN AMOUNT REQUESTED (B): $449,430 OWN FUNDS REQUIRED (A–B) = C: $75,126.50 OWN FUNDS REQUIRED (A–B) = C $75,126.50 SURPLUS/SHORTFALL (D–C) $1,873.50 surplus Assessor feedback Resubmission required? Good work Task 17 — Assessor feedback: [insert feedback] Date assessed: Click here to enter a date Does the student need to resubmit? Questions that need to be resubmitted First submission Resubmission To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Document classification: Confidential Page 79 of 135
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Task 18 — Assessing the clients’ situation Based on the information gathered in the initial client meeting with Philip and Jennifer Brown (see Case Study 1) and any other online tools used, you now need to assess the clients’ loan application, paying particular attention that you have met regulations, legislative requirements, followed industry codes of practice, and met lender credit policy. Provide data to support your comments and conclusions. Note: You will need to use this assessment of the clients’ needs to complete Part 2 of your Oral Assignment. Task 18: Question 1 Assume you have conducted your initial face-to-face meeting and have provided and sought the necessary information from your clients. Explain a minimum of three (3) regulatory and legislative requirements that you have met so far in dealing with this application. Include the documents you would have provided to the client in the initial meeting. Note: You are not charging a fee for service to your client . (30 words) Student response to Task 18: Question 1 Credit Guide – this provides information about your broker, who’s on their panel and how they get paid, together with dispute resolution policies Privacy Policy / Privacy Act Consent – this outlines the requirements that need to be met by the broker in relation to how they handle information provided to them by the client. It also gives them permission to provide your information to relevant parties in line with progressing the application ASIC RG 207 – duty to make reasonable enquiries about the ability of a client to service a potential loan Assessor feedback Resubmission required? Task 18: Question 2 As part of assessing the clients’ situation, a broker is required to determine the approximate cost of LMI. (a) Will Jennifer and Philip be required to pay LMI and why or why not? (b) If so, what would the premium be? (c) What two (2) options are available to borrowers to pay the LMI fee? (40 words) Hint/Tip: The calculators are located in the Toolbox. Also, for the purposes of this assignment, you may use the LMI premium excluding stamp duty. Student response to Task 18: Question 2(a)–(c) Document classification: Confidential Page 80 of 135
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(a) Yes, as their Loan To Value ratio is above 80% (b) $9,430 (c) As part of their repayments, or as a capitalised fee on top of the loan Assessor feedback Resubmission required? Task 18: Question 3 In the previous question you used the Helia LMI calculator to work out the LMI premium for Philip and Jennifer Brown. There are other helpful tools located on the Helia site that can assist you with the preparation of a loan application. On the Helia website, under ‘Tools’, select the appropriate calculators to complete the following: (a) What is Philip and Jennifer’s maximum loan amount according to Helia serviceability calculation? (b) What is their combined total gross and net incomes? (c) What is the proposed monthly loan repayment, based on the actual interest rate? (The actual interest rate for this exercise is 4.00%) ( Tip: capitalise the LMI cost onto the loan amount.) (30 words) Student response to Task 18: Question 3(a)–(c) (a) $833,317 (b) Gross $153,000; Net $119,281 (c) $2,145.65 Assessor feedback Resubmission required? Task 18: Question 4 Based on what they have disclosed to you, does the client have the capacity to meet the deposit and total cash contribution required for the property purchase? Explain why or why not. (30 words) Student response to Task 18: Question 4 Yes, as they have a total of $83,600 in their bank accounts. They have indicated that they are willing to spend $77,000 of this to meet the transaction costs and deposit. These fees come to a total of $75,126.50 which is under $77,000 indicating that they can meet those upfront costs. Document classification: Confidential Page 81 of 135
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Assessor feedback Resubmission required? Document classification: Confidential Page 82 of 135
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Task 18: Question 5 What is the security offered for this loan? Is it an appropriate type of security? If so, explain why or why not. (30 words) Student response to Task 18: Question 5 The property being purchased is what’s being offered as security, and it is not an unacceptable form of security such as community title. Assessor feedback Resubmission required? Task 18: Question 6 Prior to submitting the application, you are required to obtain a valuation on the property. For the purposes of the assignment, the broker is to arrange the valuation of the security prior to submitting the loan application. (a) Complete the template below and prepare a letter to instruct the valuer to conduct a valuation for Philip and Jennifer Brown. (b) One completed and submitted, how and where would you file this for future reference? ( Consider correct document policies and procedures including legislation and security .) Student response to Task 18: Question 6(a)–(b) (a) Sonic Registered Valuations 345 Dollar Street, Melbourne, VIC, 3073 Dear Valuer, Please find enclosed a Property Valuation Request form outlining the details of a property we required valued to support the application of loan from XYZ Bank. A full valuation will be required as we are anticipating a high LVR. Should you require any further details, please contact us immediately. Yours Sincerely Mike Brokers Inc Property Valuation Request Document classification: Confidential Page 83 of 135
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Broker details Name Contact details Brokers inc Michael Mitchell 0424668008 Client name Loan type Loan amount Brown, Philip & Jennifer P&I Homeloan $449,430 Loan purpose Purchase YES Refinance 0 Consolidation 0 Equity release 0 Property type Residential YES Commercial 0 Vacant land 0 Land and construction 0 Property address : Unit 1, 92 Golf Links Way, Bundoora VIC 3083 Title details Volume: 10120 Folio: 456 Folio identifier: 5 Description Year of construction 2013 Number of bedrooms 2 Number of bathrooms 2 Car accommodation 2 Other rooms Kitchen/family, lounge Other features Golf course views Property value Purchase price: $490,000 (offer) Date of contract: Offer not submitted or Land purchase price: $NA Building contract: $NA Refinance ― estimated value range From: $NA To: $NA Property use Owner occupied YES Investment 0 Holiday rental 0 Rental income Rent per month $ NA .00 ( Actual/Proposed) Document classification: Confidential Page 84 of 135
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Valuation type: Full valuation: YES Kerbside: 0 Desktop: 0 (b) The Privacy Act requires handling of this in accordance with Part 2, section 13 and the Australian Privacy Principles. Further, the Best Interests Duty would arguably require a copy of this to be kept as evidence of the Broking process. Accordingly, I would keep an electronic record of the valuation and the emails surrounding it filed in accordance with our documented record management policy where records are easily located, legible, identifiable and traceable and archived when obsolete Assessor feedback Resubmission required? Document classification: Confidential Page 85 of 135
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Task 18: Question 7 After considering the client's financial position, what loan amount would you recommend, and why? (30 words) Student response to Task 18: Question 7 I would recommend the loan amount of $449,430 as documented above, as it accounts for the $77,000 the Browns’ have saved and are comfortable and willing to spend on the process, including the deposit. This loan amount also accounts for the LMI required due to the high LVR. Assessor feedback Resubmission required? Task 18: Question 8 What is the likelihood that the clients will be able to meet all of their financial obligations once the loan is in place? (30 words) Student response to Task 18: Question 8 The HELIA Serviceability Calculator indicates that they would be able to meet their financial obligations to the loan and includes a buffer which can account for risks like interest rate increases. The calculator also accounts for the minimum repayment on their credit cards should they charge more to them. Further expenses like house and contents insurance, R&M and the like are not accounted for, but as they pretty easily meet the serviceability standards it would likely not prove to be a problem. The NDI index on the calculator was also 2.27 against a minimum of 1. Assessor feedback Resubmission required? Task 18: Question 9 Under Responsible lending requirements, brokers also need to consider foreseeable changes in a client’s financial position. What issues may impact the clients’ ability to meet their financial obligations, including any possible risks, now or in the future? (40 words) Student response to Task 18: Question 9 See question 8. Other things that it may not account for could include: - Job loss or change of employment status - Under insurance of the property, even though insurance would likely be a requirement of the mortgage contract - Having a family in 5 years time would require a large adjustment to their ability to service the loan - Expenditure coming from an overseas trip Document classification: Confidential Page 86 of 135
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Assessor feedback Resubmission required? Document classification: Confidential Page 87 of 135
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Task 18: Question 10 Most lenders stress test home loan repayments by adding a 3.0% buffer to the interest rate to make sure the borrower can afford the repayments over the medium term. If interest rates increased by 3.0%, what would Philip and Jennifer’s loan repayments be, and do you think they would be able to cope with the extra repayment amount? (50 words) Student response to Task 18: Question 10 $2,990.07 would be the monthly repayment should the interest rates rise from 4% to 7%. I am confident that they would be able to cope with the extra interest payments as their total repayment would increase from 17% to approx. 23.5% of their gross income. Whilst this may be a shock to their system, they would still find it easily manageable as it’s well under the broadly accepted 35%, even if their living expenses were to increase. Their NDI would should interest rates rise is still 1.73, which is well over the 1 required Assessor feedback Resubmission required? Task 18: Question 11 (a) Identify appropriate product options you can present to the clients that may remove this interest rate risk? (b) What advantage would this type of product provide for the customer? (50 words) Student response to Task 18: Question 11(a)–(b) (a) The Browns may wish to consider a split rate product. This would be appropriate due to their concerns about interest rate increases but would also potentially meet the requirements of redraw and offset facilities and the ability to make additional payments from time to time as it still has a variable component, whereas a straight fixed rate product may be very limiting on these factors (b) These products add stability to the interest rate through a fixed rate portion. This allows the borrower to budget more readily by knowing what their upcoming payment will be Assessor feedback Resubmission required? Task 18 — Assessor feedback: You have demonstrated a good understanding of the topics covered in this task question and achieved competency Document classification: Confidential Page 88 of 135
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Date assessed: Click here to enter a date Does the student need to resubmit? Questions that need to be resubmitted First submission Resubmission To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Document classification: Confidential Page 89 of 135
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Task 19 — Presenting borrowing options and potential benefits Task 19: Question 1 Although Philip and Jennifer (Case study 1) are looking to borrow at approximately 90% LVR, what other options may be available to them that would avoid the cost of LMI? Provide at least three (3) options. (100 words) Student response to Task 19: Question 1 1. Security structuring – if they had another property they could also use it as cross-collateral to spread the loan across to bring down the LVR 2. Use a guarantor – Their parents may be willing to put up their property as collateral, so should the Browns’ default the lender would have a claim against their parents property too 3. Save for longer to gather the 20% deposit – this may see that the property market or interest rates rise too, so it’s risky 4. Look for lenders that don’t charge LMI. These lenders often have a higher interest rate to compensate for the extra risk Assessor feedback Resubmission required? Task 19: Question 2 Describe the First Home Owner’s Grant or home buyer assistance scheme benefits and stamp duty concessions that are available in the state where Philip and Jennifer are purchasing their home. Are Philip and Jennifer eligible for any assistance? Explain why or why not? (100 words) Student response to Task 19: Question 2 There is a stamp duty concession in Victoria for first home buyers, and in the Browns’ case it may have decrease the stamp duty from $21,370 to $0. Unfortunately, though, they (as a couple) are ineligible as Jennifer had previously owned a property with her sisters. By association Philip will be rendered ineligible on his next property purchase for the same reason. Similarly, the First Home Owners Grant would have been worth $10,000 to the Browns’ but they are ineligible as the property they purchased has been previously inhabited (is not new), and Jennifer previously purchase a house. The Victorian Homebuyer Fund allows people with a lower deposit entry into the market as it will contribute up to 25% should the buyers be able to contribute 5%. This is then repayable when the property is sold. Assessor feedback Resubmission required? Document classification: Confidential Page 90 of 135
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Task 19: Question 3 Philip and Jennifer have called to discuss an issue in relation to the product option you have proposed. They are wondering whether it would be better to fix the interest rate on their loan after having received several conflicting viewpoints from family and friends. (a) Explain the process you would use to research and identify the various product options available to address the issue raised and still meet the needs of Philip and Jennifer. (b) Explain to Philip and Jennifer two (2) advantages and two (2) disadvantages of fixing a loan over different fixed rate terms. (150 words) Student response to Task 19: Question 3(a)–(b) (a) I would reach out to my lending panel and research their fixed options. I would be looking at the products through the lens of how they would fit with the Browns’s requirements of redraw and offset facilities, additional repayments and the other requirements listed by them. Once I have found the best 3 solutions I would sit down with the Browns’ and explain those solutions in terms of advantages and disadvantages, their risk appetite and ability to service the loans. These options aren’t generally available with a fixed rate loan (b) A1 – you always know your repayments for the fixed period as they never vary A2 – you aren’t impacted by interest rate hikes in terms of your mortgage D1 – if you decide you want to finalise your loan early, you will have to pay break costs which can be quite substantial D2 – if the interest rate decreases, you don’t see any benefit from it Assessor feedback Resubmission required? Task 19: Question 4 What other option/s can you suggest if Philip and Jennifer remain uncertain about whether to fix the rate on their loan? (100 words) Student response to Task 19: Question 4 The other option I would suggest to the Browns’ is that they consider a split-rate loan, as this can combine the best features of both variable and fixed rate loans. The biggest point on this one is that if interest rates were to rise, fixing a large portion of their loan would provide them with increased certainty on repayments and off-set the impact of any rate rise, if you balance this with them being able to have redraw and offset facilities then it seems like it might be a good solution for them. Assessor feedback Resubmission required? Document classification: Confidential Page 91 of 135
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Task 19: Question 5 You want to ensure that Philip and Jennifer have all the critical insurance protections in case something unfortunate happened to one of them. (a) What process would you follow during your discussion with the clients to ensure you have a good assessment of their needs? (50 words) Student response to Task 19: Question 5(a) (a) As mortgage brokers are not qualified to advise on insurance based products, I would simply ask them if they have considered getting life and/or income insurance protection and perhaps refer to an insurance broker Assessor feedback Resubmission required? (b) Explain who you should refer Philip and Jennifer to obtain advice on these types of products. (10 words) Student response to Task 19: Question 5(b) (b) I would ask the Browns’ to get specialist advice from an Insurance Broker Assessor feedback Resubmission required? Task 19 — Assessor feedback: You have demonstrated a good understanding of the topics covered in this task question and achieved competency Date assessed: Click here to enter a date Does the student need to resubmit? Questions that need to be resubmitted First submission Resubmission To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Document classification: Confidential Page 92 of 135
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Task 20 – Supporting the client to settlement Although a broker does not participate in the settlement process, they still need to remain in touch with all of the stakeholders until the loan settles. Task 20: Question 1 Why it is important for the broker to remain informed of developments in the lending process despite not being actively involved at every stage? (100 words) Student response to Task 20: Question 1 The broker needs to remain informed of developments so they can provide better service to their clients and also provide someone with which clients can ask questions to when they don’t understand documents or requests from the lender. Having a broker who is informed of the progress can help make the process go a lot smoother. Assessor feedback Resubmission required? Task 20: Question 2 The application form and related documents have now been signed and forwarded to the lender for approval. Philip and Jennifer have agreed that you will keep their solicitor informed of progress if/when the loan is approved. (a) To improve your service delivery standards and ensure you are communicating effectively with Philip and Jennifer for the remainder of your interactions with them, you thought this was an appropriate time to review your client service standards. Refer to the ‘Example of an organisation’s policies and procedures’ document in the Toolbox under the section ‘client service standards’. What evidence would you consider in your review of the service delivery standards? (b) Considering organisational policy and procedure, how would you document the improvements and to whom in your organisation might you submit your review of the standards? (100 words) Student response to Task 20: Question 2(a)–(b) ( a) I would consider customer reviews and feedback, potentially the google feedback score as well to see if there are any issues surrounding our communication and response times to clients. Other tools to consult could also include customer service based KPIs or mystery shopping reports. (b) I would put together a document summarising my findings from the information provided in the customer reviews. In this summary I would note the 3 most important take aways and propose changes to the policy and/or training for how to improve those metrics. I would submit this review to the directors. Document classification: Confidential Page 93 of 135
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Assessor feedback Resubmission required? Task 20 — Assessor feedback: You have demonstrated a good understanding of the topics covered in this task question and achieved competency Date assessed: Click here to enter a date Does the student need to resubmit? Questions that need to be resubmitted First submission Resubmission To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Document classification: Confidential Page 94 of 135
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Case study 2: Mary Azacca Case study 2 for Mary Azacca is located in your subject room in KapLearn. Task 21 ― Case study 2: Refinancing a home loan One of your clients, Adib Bursal, who has used your service for several years, has referred a work colleague who is considering their options to refinance their loan. The colleague’s name is Mary Azacca. The initial meeting with Mary was conducted over Zoom. Following the meeting, Mary forwarded basic information and documents sufficient to prepare a preliminary assessment. Task 21: Question 1 A preliminary assessment is a document prepared by the broker and given to the borrower upon request. However, before the assessment is prepared, the broker must have a comprehensive idea of what the client requires. To collect the information necessary to prepare a preliminary assessment, refer to Case Study 2 for Mary Azacca and complete the following tasks. (a) Using the client information collection tool/fact finder, complete: – assets and liabilities – needs analysis – anticipated fees and charges – funds to complete. Document classification: Confidential Page 95 of 135
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Student response to Task 21: Question 1(a) Client information collection tool/Fact finder Appointment date: 11/10/2023 Appointment time:1pm Applicant 1 Surname Azacca Other names Mary Contact details Address 8 North Road, Rockingham WA 6168 Phone (W) Phone (H) NA (08) 8594 6168 Mobile 0439 258 478 Email mary.azacca@gmail.com Employment Nursing Unit Manager @ Allied Health Services Ltd, Perth WA 6000 How long? 18 Years Previous employer (if less than two years) NA How long? NA Employment type (FT/PT/casual/self-employed) FT Gross income (p.a.) $95,000 Net income (monthly) $5,977 Number of dependants 0 Motor vehicles: make/model/year/value $ Holden Commodore SS – 2007 - $25,000 Nissan Qashqai – 2019 - $25,000 Indian Scout Motorcycle – 2018 - $18,000 Loan purpose Refinance of current property Purchase price/Valuation $550,000 Deposit on property $0 Loan amount $330,000 Borrowing capacity (using Helia serviceability calculation) $583,113 Document classification: Confidential Page 96 of 135
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Assets and liabilities Assets Liabilities Details Market value Details Monthly payments Amount owing Owner occupied property at: 8 North Road Rockingham Perth Western Australia $550,000 Mortgage with: Simply Home Loans $2,292 $330,000 Investment property at: NA Mortgage with: NA NA Cash at bank (includes fixed deposits) $34,000 Car leasing NA NA Other cash (includes offset accounts) NA Personal loans 1. 2. NA NA Deposit paid on property (only if paid) NA Overdraft NA NA Motor vehicles: 1. Holden Commodore SS 2007 2. Nissan Qashqai 2019 3. Indian Scout Motorcycle 2018 $68,000 Other loans: 1. 2. NA NA Personal effects $115,000 Credit card limit: $5000 $150 $700 Business value (if self-employed) NA Credit card limit: NA NA NA Shares and investments $15,000 Other: NA NA Superannuation $480,000 Other: NA NA Other assets (give details) NA Other: NA NA Total assets $1,262,000 Total liabilities $2,442 $330,700 Surplus/deficiency: (Total assets less Total liabilities) $931,300 Document classification: Confidential Page 97 of 135
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CURRENT MONTHLY LIVING EXPENSES (Provide a breakdown of the total amount listed in the case study — use your discretion) Food/housekeeping $1,300 Insurance (e.g. motor vehicles, home contents/ building, medical, life/income protection) $300 Utilities (e.g. rates, gas, electricity, transport) $300 Transport (e.g. public transport, petrol, registration, repairs) $400 Education (e.g. school, college, university) NA Dependants support (e.g. childcare, child maintenance) NA Entertainment (include online subscriptions, e.g. Netflix/Stan) $33.33 Other (detail below): MONTHLY LIVING EXPENSES $2,333.33 Document classification: Confidential Page 98 of 135
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Needs analysis 1 Name of your current lender? Simply Home Loans 2 What type of loans do you have? P&I Mortgage 3 Why did you choose this particular loan and lender? Was chosen by ex-husband 4 What is the interest rate on your current loan? 4.80% 5 What are your payments? Amount $2,292 6 Frequency Monthly 7 Do you know the fees and charges? No 8 What is your proposed purpose for the new loan you are applying for? Residential mortgage refinance 9 Branch access available with current lender NA 10 Internet banking available with current lender NA 11 Phone banking available with current lender NA 12 Lenders not to be considered NA 13 Type of loan sought P&I Mortgage 14 Preferred interest rate range 4% 15 Payment frequency Fortnightly 16 Redraw Yes 17 Offset Yes 18 Salary crediting Yes 19 Low fees and charges Yes Assessor feedback Resubmission required? Good work Task 21 — Assessor feedback: [insert feedback] Date assessed: Click here to enter a date Does the student need to resubmit? Questions that need to be resubmitted First submission Resubmission Document classification: Confidential Page 99 of 135
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To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Document classification: Confidential Page 100 of 135
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Task 22 ― Preparing a preliminary assessment Preparing a preliminary assessment is required under the NCCP Act. In this task, you are required to prepare a preliminary assessment for Case study 2: Mary Azacca. Task 22: Question 1 Before preparing the preliminary assessment, under best interest duty, you need to assess if there is a benefit to the customer by switching loans. To determine if there is a benefit for the client you need to go to the MoneySmart website. Using the mortgage switching calculator, you need to: (a) provide the result using the calculator (b) explain if the customer will benefit from switching lenders. The MoneySmart link can be located in the Toolbox. (50 words) Student response to Task 22: Question 1(a)–(b) (a) Mary should save $44,709 over the life of the loan by switching. This figure is based on the assumption that there are no fees or charges as none were provided for ‘Simply Home Loans’ (b) Yes, Mary will benefit from switching lender. The figure above is based on a like-for-like 25 year homeloan, however as Mary wants to reduce the period to 20 years she stands to save further across the life of the loan, however her fortnightly repayments may increase. Assessor feedback Resubmission required? Task 22: Question 2 Will Mary be required to pay LMI? Explain why or why not. (20 words) Student response to Task 22: Question 2 No, as the LVR will be come out at 60%, which is lower than the requisite 80% for LMI unless she considers doing a low-doc loan which is not necessary in this case. Assessor feedback Resubmission required? Document classification: Confidential Page 101 of 135
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Task 22: Question 3 Using the information gathered from your customer, Mary Azacca, you are required to prepare the preliminary assessment. Part of the preparation will require you to use a home loan comparison website and use that information to prepare the preliminary assessment below. Preliminary Assessment Student response to Task 22: Question 3 Applicant 1 Full name (Client 1) Mary Azacca REQUIREMENTS AND OBJECTIVES Reasons for seeking credit or reviewing an existing contract, and the resulting benefit Refinancing homeloan to get a better deal Specific features requested, and any risks or costs - 20-year term - premium option home loan features to minimise monthly fees payable - variable interest rate (for this case use 4.0% p.a.) - ability to make additional payments from time to time without penalty - fortnightly repayment option - redraw facility - offset account - funds access via card MONTHLY FINANCIAL POSITION Current Proposed Total monthly after tax income: (A) $5,977 $5,977 Total monthly repayments: (B) $2,292 $2000 Total monthly living expenses: (C) $2333.33 $2333.33 TOTAL MONTHLY NET SURPLUS (A-B-C) $1,351.67 $1,643.67 Foreseeable material financial changes, and resulting plan to meet the ongoing obligations RECOMMENDED PRODUCT PARTICULARS PRODUCT 1 PRODUCT 2 PRODUCT 3 Lender’s name Homestar G&C Mutual Bank Macqurie Bank Document classification: Confidential Page 102 of 135
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Loan product: Star Gold Variable Loan Momentum Home Loan Offset Homeloan Package Loan Amount: $330,000 $330,000 $330,000 Term in years 20 years 20 years 20 years Monthly repayments $2000 @ 4.0% $2091 @ 4.52% $2,124 @4.70% Other loan details: - Max LVR 70% - Only fee is a discharge fee for $535 - No ongoing fees - Offset account with debit card - Free redraws - Unrestricted extra repayments - Repayment flexibility - Extremely low rate - Split Loan facility should rising interest rates pose a concern - Max LVR 60% - No ongoing fees - Discharge fee $300 - No split loan facility - No fixed interest option - Unlimited extra repayments - $30 service fee per redraw use - Repayment flexibility - Valuation Fee and Legal Fee also applicable - Max LVR 60% - Annual fee of $248 - Settlement fee $340, Discharge fee $400, - Fixed interest option - Offset and redraw facilities - Interest only available CONFLICT OF INTEREST DISCLOSURE: Has any conflict of interest which may disadvantage the client been identified in relation to the recommended product? No conflict of interest identified SUITABILITY: Yes I consider that based on the information provided by the client and further enquiries that the loan proposal is ‘not unsuitable’ for the client. Indicate yes or no and provide supporting comments. Option 1 by HomeStar would be the most suitable product. Offset, free redraw, fortnightly repayments, funds via card, unrestricted additional repayments as requested all form part of this package at a very competitive interest rate. They also offer a splitting facility should rates start rising where a portion of the loan can be fixed to give certainty around repayments. There are also no ongoing fees on this loan. Assessor feedback Resubmission required? Task 22: Question 4 Of the three loans recommended in the preliminary assessment, which loan product would you recommend to Mary, and why? (30 words) Document classification: Confidential Page 103 of 135
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Student response to Task 22: Question 4 Option 1 by HomeStar would be the most suitable product as the offset, free redraw, fortnightly repayments, funds via card, unrestricted additional repayments as requested by Mary all form part of this package at a very competitive interest rate. They also offer a splitting facility should rates start rising where a portion of the loan can be fixed to give certainty around repayments. There are also no ongoing fees on this loan. Assessor feedback Resubmission required? Task 22: Question 5 Does Mary qualify for any government concessions or stamp duty reductions? Explain why or why not. (20 words) Student response to Task 22: Question 5 Mary does not qualify for any concessions in Western Australia, as it’s not her first home and she does not have a disability. Assessor feedback Resubmission required? Document classification: Confidential Page 104 of 135
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Task 22: Question 6 What other issues may impact, now or in the future, on the Mary’s ability to meet her obligations, including any possible risks? (30 words) Student response to Task 22: Question 6 Taking time off work to travel may pose a risk, in particular the 3 months she’s looking at taking as unpaid. However there are ways around this including redrawing on the loan to meet the minimum repayments. Loss of employment is always a risk, albeit a minimal risk as is sickness impacting on her ability to work. For these risks it’s possible to take out insurance. Assessor feedback Resubmission required? Task 22: Question 7 You are required to present your analysis and recommendations to your client. On this occasion you will make your presentation in an email. You will gather some of the information from your preliminary assessment and you will also need to include the following information. • Provide a brief summary of your understanding of the clients’ needs (this could be an outline summary of their proposed loan structure). • Provide a brief summary of the clients’ current financial position (use information from the case study). • Give an explanation of the product options evaluated that meet their needs (you should have researched at least three (3) lenders as part of the preliminary assessment) and details of the loan features. Use the internet or, if working in the industry, internal software to do this. • Explain the option you recommend and the reasons for the recommendation — including the loan amount, term and repayments. Explain how the recommended product meets the clients’ needs (refer to the case study) • Invite questions from the client and respond in a follow-up email accordingly. • Seek agreement from the client to proceed with the product recommendation. (200 words) Document classification: Confidential Page 105 of 135
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Student response to Task 22: Question 7 Document classification: Confidential Page 106 of 135
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Good morning Mary, From our conversations and the documents provided, I’ve settled on the best 3 options that I think meet most, if not all, of your requirements and also offer a very decent interest and comparison rate. The main requirements that you stipulated were: 1. A loan for $330,000 2. Decreasing the loan term from 25 years to 20 years 3. Premium home loan package features with minimal ongoing fees 4. A variable rate 5. Additional repayments must be possible, and preferably without penalty 6. Fortnightly repayment options 7. Redraw and Offset facilities 8. Access to related funds via card Your current financial position, on a monthly basis, see’s that you earn approximately $6000 after tax, spend almost $2,300 on your loan and about the same again on general expenditure, leaving you with a monthly surplus of approximately $1,400. Add to this the many assets and limited liabilities you have and it appears that you’d be a very attractive client for any lender. I’ve tabled the 3 best loan options below, you’ll note that all 3 products are 20 year loans as requested and have a lower monthly repayment than you’re currently enjoying: PRODUCT 1 PRODUCT 2 PRODUCT 3 Lender’s name Homestar G&C Mutual Bank Macqurie Bank Loan product: Star Gold Variable Loan Momentum Home Loan Offset Homeloan Package Loan Amount: $330,000 $330,000 $330,000 Term in years 20 years 20 years 20 years Monthly repayments $2000 @ 4.0% $2091 @ 4.52% $2,124 @4.70% Product Notes: - $535 if you leave early - No ongoing fees - Offset account with debit card - Free redraws - Unrestricted extra repayments - Repayment flexibility - Extremely low rate - Split Loan facility - $300 if you leave early - No ongoing fees - No split loan facility - No fixed interest option - Unlimited extra repayments - $30 service fee per redraw - Repayment flexibility - $400 if you leave early - $340 on settlement - Annual fee of $248 - Fixed interest option - Offset and redraw facilities - Interest only available Document classification: Confidential Page 107 of 135
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Assessor feedback Resubmission required? Document classification: Confidential Page 108 of 135
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Task 22: Question 8 Mary has responded to your email asking some questions. To: Broker 1 Broker1 @CCF&MB.com.au From: mary.azacca@gmail.com Re: Recommendation Dear broker, Thank you for providing your recommendation for the home loan product for my refinance application. I have some questions I am hoping you can answer for me: 1. I want to open a bank account to make sure there is somewhere for any disbursement of surplus funds from the refinance settlement and also for my periodical payments to be debited from. What options do I have to apply to open a bank account? 2. What ID will I need to provide to open a new bank account? I look forward to receiving your reply. Thank you. Mary Azacca Send a reply email to Mary to answer her questions. (100 words) Hint/Tip: You will need to conduct your own research to answer this question. Refer to the Toolbox for a suggested website. Student response to Task 22: Question 8 FWD: To: Mary Azacca mary.azacca@gmail.com From: broker1@CCF&MB.com.au re: Recommendation Hi Mary, The Homestar Star Gold Variable Loan comes with an offset bank account that has a linked Visa Debit Card. Depending on how you want to set up your personal banking, this account could be used for the home loan fortnightly debits. To open a bank account you will require 100 points of ID. This is usually satisfied through the use of a drivers licence and a medicare card/passport. If you’re setting it up as part of the homeloan than I can forward a sheet of requirements your way to help get you started. If you have any other questions, please shout out. Kind Regards, Mike Assessor feedback Resubmission required? Document classification: Confidential Page 109 of 135
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Task 22: Question 9 In the course of your interactions with Mary, you have gathered or completed a number of documents, which include, for example, the completed fact find with credit representative notes, the preliminary assessment and assorted communication with her. How and where would you file this information? (30 words) Student response to Task 22: Question 9 The Privacy Act requires handling of this in accordance with Part 2, section 13 and the Australian Privacy Principles. Further, the Best Interests Duty would arguably require a copy of this to be kept as evidence of the Broking process. Accordingly, I would keep an electronic copy of the records and the emails surrounding it filed in accordance with our documented record management policy where records are easily located, legible, identifiable and traceable and archived when obsolete Assessor feedback Resubmission required? Task 22 — Assessor feedback: You have demonstrated a good understanding of the topics covered in this task question and achieved competency Date assessed: Click here to enter a date Does the student need to resubmit? Questions that need to be resubmitted First submission Resubmission To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Document classification: Confidential Page 110 of 135
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Case study 3: Ravi & Alice Patel Case study 3 for Ravi & Alice Patel is located in the subject room. Task 23 ― Case study: Purchasing an investment property Ravi and Alice Patel have approached you to arrange finance to purchase an investment property. The clients have already paid the 10% deposit, so you will need to act fast as they need to settle in 60 days. Following the initial meeting, the clients have provided all of the essential documents to prepare a loan submission. Task 23: Question 1 To commence the process, you need to enter the information collected into your aggregator’s CRM system. This will include: (a) client information collection tool/fact finder (b) assets and liabilities (c) needs analysis (d) credit representative notes (e) anticipated fees and charges (f) funds to complete. Document classification: Confidential Page 111 of 135
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tudent response to Task 23: Question 1 Client information collection tool/fact finder Appointment date: 11/10/2023 Appointment time: 2pm Applicant 1 Applicant 2 Surname Patel Patel Other names Ravi Alice Contact details Address 12 Mascot St, Lidcombe 12 Mascot St, Lidcombe Phone (W) Phone (H) NA NA NA (02) 9741 1254 Mobile 0419 456 123 NA Email Ravi@jayzar.com.au alicep@elitestyle.com.au Employment Carpenter Designer How long? 15 years 25 years Previous employer (if less than two years) NA NA How long? NA NA Employment type (FT/PT/casual/self-employed) Self-Employed Part-Time Gross income (p.a.) $50,000 $45,000 Number of dependants 2 2 Motor vehicles: make/model/year/value $ Toyota Prado 2015 NA $48,000 Loan purpose Purchase of Investment Property Purchase price/valuation $660,000 Deposit on property $66,000 Loan amount $715,000 Document classification: Confidential Page 112 of 135
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Assets and liabilities Assets Liabilities Details Market value Details Monthly payments Amount owing Owner occupied property at: 12 Mascot St, Lidcombe $1,300,000 Mortgage with: Penrith Mutual Home Loan $1,800 $450,000 Investment property at: NA Mortgage with: NA NA Cash at bank (includes fixed deposits) $37,500 Car leasing NA NA Other cash (includes offset accounts) $200,000 Personal loans 1. 2. NA NA Deposit paid on property (only if paid) NA Overdraft NA NA Motor vehicles: 1. Toyota Prado 2015 2. $48,000 Other loans: 1. 2. NA NA Personal effects household effects $140,000 Credit card limit: $5000 $150 $800 Business value (if self-employed) NA Credit card limit: NA NA NA Shares and investments NA Other: NA NA Superannuation Ravi Alice $300,000 $120,000 Other: NA NA Other assets (give details) Boat: Bar crusher 2017 $65,000 Other: NA NA Total assets $2,210,500 Total liabilities $1950 $450,800 Surplus/deficiency: (Total assets less Total liabilities) $ 1,759,700 Document classification: Confidential Page 113 of 135
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CURRENT MONTHLY LIVING EXPENSES (Provide a breakdown of the total amount listed in the case study — use your discretion) Food/housekeeping $2000 Insurance (e.g. motor vehicles, home contents/ building, medical, life/income protection) $500 Utilities (e.g. rates, gas, electricity, transport) $500 Transport (e.g. public transport, petrol, registration, repairs) $500 Education (e.g. school, college, university) $500 Dependants support (e.g. childcare, child maintenance) Entertainment (include online subscriptions, e.g. Netflix/Stan) $200 Other (detail below): $383.33 MONTHLY LIVING EXPENSES $4,583.33 Document classification: Confidential Page 114 of 135
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Needs analysis 1 Name of your current lender? Penrith Mutual 2 What type of loans do you have? Residential Mortgage 3 Why did you choose this particular loan and lender? Best deal at the time 4 What is the interest rate on your current loan? Not specified 5 What are your payments? Amount $1,800 6 Frequency Monthly 7 Do you know the fees and charges? No 8 What is your proposed purpose for the new loan you are applying for? Purchase Investment Property 9 Branch access available with current lender NA 10 Internet banking available with current lender NA 11 Phone banking available with current lender NA 12 Lenders not to be considered NA 13 Type of loan sought Variable with interest only period of 5 years 14 Preferred Interest rate range 4.7% 15 Payment frequency Not specified 16 Redraw Yes 17 Offset No 18 Salary crediting Yes 19 Low fees and charges Yes Document classification: Confidential Page 115 of 135
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Credit representative notes Note: Providing substantive notes here is a compulsory part of your assessment. Home equity loan, borrowing > 100% but avoiding LMI through using equity in current property as guarantee (cross-collateralisation). This might require 2 loans instead of 1, split across both properties. Require interest only for first 5 years to keep payments as low as possible, but want to build equity ASAP – perhaps a 2 loan solution where the initial $450k loan is P&I allowing for building equity, but the second loan of $715k is interest only for first 5 years, minimising repayments. This may potentially allow for negative gearing benefits on the interest only loan in relation to the investment property (tax advice required) Land Tax not applicable as PPOR ($1.3M) is exempt from land tax in NSW, leaving only $660,000 which is under the $969,000 2023 threshold $500 – discharging current $450k Penrith Mutual loan. No actual fee provided but it’s a standard fee across banks Due to cross-collaterial nature of deal, lender may refuse interest-only option Security - $660,000 + $1,300,000 = $1,960,000 Total loans - $450,000 + $715,000 = $1,165,000 LVR - $1,165,000 / ,$1,960,000 = 59.45% - therefore LMI NOT NECESSARY Document classification: Confidential Page 116 of 135
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Anticipated fees and charges Anticipated purchase price $660,000 Deposit on property $66,000 Total Loan amount $715,000 LVR % 108.33% (WITHOUT cross collateral and refinance on PPOR) Purchase costs $24,435 $165 Stamp duty – Transfer of Land Registration fee – Transfer of Land Solicitor/conveyancer fee $1,500 Rates and land taxes (estimate) $0 0Pest inspection (estimate) $400 Building inspection (estimate) $495 Borrowing costs $0 – normally $600 but waived under special offer by WBC Application/establishment fee Valuation fee $0 – initial valuation FOC Security admin fee $0 LMI $0 – not necessary as cross-collateral method in use Registration of mortgage $165 Discharge/release of mortgage fee $350 – discharging current $450k Penrith Mutual loan Search fees $0 – covered in conveyancing charges Other NA Total purchase and borrowing costs $687,510 Document classification: Confidential Page 117 of 135
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Funds to complete PURCHASE AND LOAN COSTS: AVAILABLE FUNDS: Purchase price: $660,000 Deposit if already paid to agent: $66,000 Lender application/valuation fees: $0 Cash savings: $237,500 Stamp duty payable ― Transfer of Land $24,435 Sale proceeds: NA Registration fee ― Transfer of Land $165 Registration of Mortgage ― Land Titles Office $165 Gift: NA Solicitors fees: $1,500 FHOG: NA Other $1,245 Other: NA Lenders mortgage insurance Added to loan NA Other: NA TOTAL COSTS (A): $687,510 TOTAL OWN FUNDS (D): $303,500 LOAN AMOUNT REQUESTED (B): $715,000 OWN FUNDS REQUIRED (A–B) = C: -$27,490 OWN FUNDS REQUIRED (A–B) = C: -$27,490 SURPLUS/SHORTFALL (D–C): $330,990 surplus Assessor feedback Resubmission required? Good work Task 23 — Assessor feedback: [insert feedback] Date assessed: Click here to enter a date Does the student need to resubmit? Questions that need to be resubmitted First submission Resubmission To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Document classification: Confidential Page 118 of 135
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Task 24 ― Preparing a loan proposal After completing your investigation into what loan options are available, you are ready to proceed and prepare a loan proposal for the clients Ravi and Alice. During discussions with the clients, they have confirmed their willingness to cross-collateralise their owner-occupied property as equity to purchase the investment property. So, you have agreed to send them an email and propose two options to finance the investment property. Firstly, you are required to complete the credit proposal disclosure to attach to your email presentation. Credit proposal disclosure This document provides information on commissions and certain fees and charges the broker or other parties may receive in relation to the proposed loan or lease. Task 24: Question 1 You now need to complete a credit proposal. For this task you will need to use an online loan comparison website and to complete the template below. Lender information: The lender is paying an upfront commission of 0.65% of the loan amount and a monthly trail based on 0.15% of the loan balance. Student response to Task 24: Question 1 Customer(s) full name(s) Ravi & Alice Patel Address 12 Mascot St, Lidcombe, NSW, 2141 Phone and email (02) 9784 0454; Ravi@jayzar.com.au Proposed finance Interest rates and repayments may change if the lender changes its interest rate. Lender: St. George Product: Basic Variable Rate Homeloan (Investor IO) **Please note that the split below is a single loan broken into a refinance component and a new property component for explanation** Split 1 Purpose: Refinance PPOR Finance amount: $450,000 Interest structure: Interest only (first 5 years) Interest rate: 4.7% Term: 25 years Repayments: $1,763 Other features Split 2 Purpose: Purchase Investment Property Finance amount: $715,000 Interest structure: Interest only (first 5 years) Interest rate: 4.7% Term: 25 years Repayments: $2,800 Other features: Total loan amount $1,165,000 (total monthly repayment $4,563) Document classification: Confidential Page 119 of 135
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Fees payable by you to us. These fees are payable by you . $0 Commission is payable for: Securing a residential mortgage Commission payable by: Westpac Banking Corporation Commission payable to: Friendly Local Brokers Reasonable estimate of commission: 0.65% of the amount of credit limit shortly after the finance is provided. We estimate this to be $7,572.50+GST. 0.15% per annum of your amount owing from time to time payable monthly. We estimate the largest monthly payment to be $1,747.50+GST. Estimate of total fees and charges payable to the financier in relation to applying for the finance. These fees are payable by you . Note : These figures are estimates only and the final figures will be shown in your credit contract or lease. Some (or all) of these fees may be paid from the finance proceeds. We are not aware of any other fees or charges payable to anyone else in relation to the application for finance, but the financier may impose some additional requirements. Application fee: Establishment fee: Lenders mortgage insurance: Valuation fee: Transfer duty fees: Refinancing fees: (mortgage registration) Discharge fee: (Penrith Mutual) Other known costs Total $0 $150 $0 $0 $165 $165 $350 $0 $830 Assessor feedback Resubmission required? Document classification: Confidential Page 120 of 135
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Task 24: Question 2 Now that you’ve completed the credit proposal disclosure, you will need to write your email to the client. You must cover the following points, namely: • a summary of your understanding of the clients’ needs (this could be an outline summary of their proposed loan structure) • a brief summary of their current financial position (use information from the case study) • your explanation of the minimum of two (2) product options evaluated that meet their needs and details of the loan features (use the internet or, if working in the industry, internal software) • the option you recommend and the reasons for the recommendation — including the loan amount, term and repayments; explain how the recommended product meets the clients’ needs (refer to the case study); and explain why you recommend this lender. • invite questions from the client and respond in a follow-up email accordingly • provide a section for the client to provide you with permission to proceed. (200 words) Document classification: Confidential Page 121 of 135
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Student response to Task 24: Question 2 Document classification: Confidential Page 122 of 135
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Good morning Ravi & Alice, From our conversations and the documents provided, I’ve settled on the best 2 options that I think meet most, if not all, of your requirements. The main requirements that you stipulated were: 1. A loan for $715,000, which covers the entire purchase, associated costs, and renovations 2. A full loan term of 25 years 3. No ongoing monthly fees 4. Low repayments, utilising an interest only loan for the next 5 years 5. To be building equity as soon as possible 6. Using variable interest rates 7. Settlement within 60 days Your current financial position, monthly, see’s that you earn approximately $7,916 gross, spend almost $1,950 on your current liabilities and about $4,583 on general expenditure, leaving you with a monthly surplus of approximately $1,383. Add to this the assets and liabilities you have, and on paper you’d be an attractive client for any lender. One thing we need to figure out though, is the potential rent that you’re looking to receive one you have your new property renovated. Without providing for this I fear you may run into some serviceability issues as your repayment will jump from $1950 to circa $4600/month (+ $2,650), whilst your cash surplus is only $1,383. If you’re able to come back to me with this it would be a great help! Regardless of the serviceability, we can still look at what loans would best suit. I’ve tabled the 2 best loan options below, you’ll note that both products are 25 year loans as requested and have a lower monthly repayment than you’re currently enjoying; please also note that both options will see you free from paying Lenders Mortgage Insurance due to the use of your principal place of residence in the collateral mix: PRODUCT 1 PRODUCT 2 Lender’s name Westpac Banking Corporation St. George Loan product: Flexi-First Option Homeloan (Investor IO) Basic Variable Rate Homeloan (Investor IO) Loan Amount: $1,165,000 ($450k + $715k split) $1,165,000 (one loan) Term in years 25 (IO 5 years) 25 (IO 5 years) Monthly repayments $2,553 + $2,800 = $5,353 $4,563 @ 4.7% Product Notes: - Refinance of current homloan on P&I basis ($450k) - Addition of second interest only (5-year) homeloan to cover investment ($715k) - Refinancing current homeloan and investment loan into a single loan - Interest only, which usually incurs a higher rate - If renovations are done Document classification: Confidential Page 123 of 135
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Assessor feedback Resubmission required? Document classification: Confidential Page 124 of 135
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Task 24: Question 3 Ravi has responded to your email asking some questions. To: Broker 1 Broker1 @CCF&MB.com.au From: ravi.patel @jayzar.com .au Re: Recommendation Dear broker, Thank you for providing your recommendation for the home loan product for our refinance application. I have some questions I am hoping you can answer for us: 1. Can you please explain our rights for obtaining a written assessment. 2. Do you have to provide us with a comparison rate with your home loan product recommendations, and can you please explain the difference between the interest rate and the comparison rate? 3. We would like to negotiate the application fee or the interest rate for the product you’ve recommended. Can you please advise how much you can negotiate for either the interest rate or the application fee on our behalf? Thank you and regards, Ravi Patel Send a reply email to Ravi to respond to those questions. (100 words) Document classification: Confidential Page 125 of 135
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Student response to Task 24: Question 3 FWD : To: Ravi Patel ravi@jayzar.com.au From: broker1@CCF&MB.com.au Re: Recommendation Hi Ravi, I’ll respond to your enquiries on a point by point basis. 1. As part of my obligations, as your broker, under The National Credit Consumer Protection Act (2009) Cth, I must provide you a final written assessment stating that the product I have recommended is not unsuitable for you in your current situation. You can request this document for up to 7 years from the conclusion of our transaction. 2. I like to provide the comparison rate for any products I recommend because I consider it to give a more well-rounded view of the fees and charges associated with the home loan. The comparison rate takes into account most of the fees and charges associated directly with obtaining finance (such as application and valuation fees), but NOT those associated with purchasing the property (stamp duty, transfer fees). 3. There is no application fee on either product I have recommended. However, I’m happy to go back to the lender on your behalf to see if I can get them to ‘sharpen their pencil’ a little further. I pushed pretty hard last time though, so I can’t make any promises on results. Kind Regards, Mike Assessor feedback Resubmission required? Task 24 — Assessor feedback: You have demonstrated a good understanding of the topics covered in this task question and achieved competency Date assessed: Click here to enter a date Does the student need to resubmit? Questions that need to be resubmitted First submission Resubmission To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Document classification: Confidential Page 126 of 135
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Task 25 ― Loan contracts and security documentation Task 25: Question 1 When checking the loan offer contracts received from the lenders, what key points should you check to ensure the documents are accurate? List a minimum of six (6) points. (20 words) Student response to Task 25: Question 1 1. Borrower Details are complete and correct 2. Key dates for disclosure and offer lapse 3. Financial Table (loan amount, interest rate, repayments, fees and charges) are as agreed 4. Purpose of the loan is accurate 5. Commission accuracy and disclosure 6. Security is stated correctly 7. Loan disbursement instructions are correct Assessor feedback Resubmission required? Task 25: Question 2 If there is a guarantor involved, what type of professional should you recommend the client refer their loan contracts to prior to signing and why is this so important? Include which code you would be adhering to in doing so. (20 words) Student response to Task 25: Question 2 A solicitor to ensure that the contracts are in line with the protections offered under the Banking Code of Practice. This is important to ensure the risk to the guarantor is minimal and that only a limited guarantee applies to their situation. Assessor feedback Resubmission required? Task 25: Question 3 The clients have chosen to sign their contracts with you, in your capacity as a broker. Describe how you would explain the loan offer and security documentation to the client, as well as gain confirmation of their understanding of approval conditions of their finance. Hint/Tip: Include the sections of the loan offer that you would cover in your explanation to the client. Document classification: Confidential Page 127 of 135
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Refer to the topic notes and the sample Letter of Offer in the subject room. (100 words) Student response to Task 25: Question 3 I would firstly broadly explain it as the loan contract, and accordingly it is what you receive after you’ve passed the credit checks, the lender is satisfied that you have the means to service the loan and there is enough security on the loan that the bank is covered should the loan fail. I would state that the loan contract must be read in conjunction with the terms and conditions. Secondly, I would state that the loan offer includes their details, the financial details of the loan (including the interest rate, amount borrowed, term, fees and charges), the purpose of the loan, the commission they will pay to a broker, what conditions apply to the loan, what security is attached to the loan and how the money is disbursed. I would then walk them through each section to ensure that they’re happy that it’s what we discussed and what they will agree to. Thirdly, once I’ve walked them through each section I would ask if they have any questions, queries or concerns and that once the loan offer is signed by them and returned to the lender if becomes a legally binding contract. I would ask that they confirm their understanding of what we have discussed and again invite any questions. Assessor feedback Resubmission required? Task 25: Question 4 (a) Now that the client has signed the documents, explain how you will submit the documents to the lender. (b) Include a comprehensive list of the documents that the lender will require in order to proceed with settlement. This may also include lender-specific documents for the new loan account etc. (50 words) Student response to Task 25: Question 4(a)–(b) (a) Generally speaking the original copy of the signed loan offer and mortgage must be mailed back to the bank via Registered Post (so it can be tracked) (b) Loan offer document, loan offer terms and conditions, security documentation (mortgage or guarantee), certificate of currency for insurance on security, settlement/disbursement instructions, periodical payment authority, lender checklist, contract of sale for security, Assessor feedback Resubmission required? Document classification: Confidential Page 128 of 135
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Task 25: Question 5 Explain to your client how you will communicate with them throughout the settlement process; include the method of communication and the timeframes. (This should be in line with the organisation service standards as outlined in the Toolbox.) (20 words) Student response to Task 25: Question 5 I’ll be available to answer any phone calls and emails, however, if I do miss one, I’ll endeavour to return the call on the same day, or email within 2 business days. Should I get any news on the loan, I’ll give you a call within 24 hours. Either way, I’ll endeavour to pass on any information or requests as soon as I learn of them myself. Assessor feedback Resubmission required? Task 25: Question 6 You have just received a call from the lender to advise the documents have been executed correctly. Describe how you will notify the client. (15 words) Student response to Task 25: Question 6 I would give them a call to say congratulations, and an email to formalise it. I would include the next steps in the process and include their solicitor. Assessor feedback Resubmission required? Task 25 — Assessor feedback: You have demonstrated a good understanding of the topics covered in this task question and achieved competency Document classification: Confidential Page 129 of 135
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Date assessed: Click here to enter a date Does the student need to resubmit? Questions that need to be resubmitted First submission Resubmission To pass this assignment, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission. Document classification: Confidential Page 130 of 135
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Task 26 ― Preparing the loan for settlement Although a broker does not participate in the settlement process, they still need to remain in touch with all the stakeholders until the loan settles. Before the loan can settle the borrower needs to adhere to pre-settlement conditions. Task 26: Question 1 In the pre-settlement phase, there are items that need to be checked and satisfied. For each one, explain why it is required (i.e. what is the importance of each of item): (a) building insurance (b) independent legal advice. (40 words) Student response to Task 26: Question 1(a)–(b) (a) Building insurance is required as it is insurance on the property that the bank is using as security. Having this in place from the banks perspective is to further mitigate risk to their money as the value of the security is heavily tied to the existence of that security (b) Independent legal advice by a lawyer who works in the relevant field is important as the lawyer will know a lot more about how the contract and process should look than the borrower and will accordingly be able to point of things the buyer needs to be aware of. Further, in cases where a guarantor is being used, independent legal advice for the guarantor is important to point out to them and ensure they understand the risks and pitfalls should the loan default. Assessor feedback Resubmission required? Task 26: Question 2 Explain the settlement process to the client, include the personnel who are involved at each step. Document classification: Confidential Page 131 of 135
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(100 words) Student response to Task 26: Question 2 Settlement is the finalisation process of the transaction, where the loan, property transfer and mortgage are all finalised. There are a couple of elements to the settlement process: 1. Pre-settlement – This is where the real estate contract is signed, the mortgage security and loan documents are signed, the title searches and conveyancing checks are done to the buyers satisfaction, transfer documents for the property are done up together with a ‘statement of adjustment’ which outlines how much of an adjustment is required for rates and water. You’ll hear a lot from your broker in this stage about the loan and mortgage documents, your real estate agent about the contracts and your solicitor regarding the purchase contract, conveyancing and statement of adjustment 2. Settlement – This is where the money and title move to complete the transaction. Usually your solicitor, the vendors solicitor and representatives from the lender will be present to ensure all the money, title and security is allocated properly, and that all paperwork is completed and error free. When a document is not completed properly it can hold up settlement which will have to be rescheduled. 3. Post-settlement – This stage is where you pay the stamp duty and lodge documents with relevant government bodies, together with notifying third parties like bodies corporate about the changes. This will all usually be undertaken by your solicitor Assessor feedback Resubmission required? Document classification: Confidential Page 132 of 135
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Task 26: Question 3 Explain a minimum of four (4) examples of issues that can occur which may delay or prevent a settlement. (80 words) Student response to Task 26: Question 3 1. Documents not completed correctly or missing (eg name spelled incorrectly on title transfer document) 2. Problems with the title (other interested parties appear – previous lenders who haven’t been discharged) 3. Shortfall in funds for settlement (unexpected adjustments to stamp duty, council rates or the like) 4. Problems with the condition of the property found at the final inspection prior to handover Assessor feedback Resubmission required? Task 26: Question 4 Explain the steps in the process of registering security documentation. (50 words) Hint/Tip: In addition to the topic notes, you may also be required to undertake your own research. Student response to Task 26: Question 4 In short, you will be required to lodge a transferring of land document with the states land titles office. For example, in Queensland: 1. Download Form 1 and Form 24 from the Queensland Titles Registry, and ensure you have all supporting evidence (purchase contract, identification details, property details) present 2. Complete form 1 (transfer) including the lot and plan of the property, seller details, the interest you wish to provide to interested parties, details of consideration under the sale contract, purchaser details and have this form witnessed by a JP or qualified witness 3. Complete form 24 (property information) which includes a lot of similar information to form 1, but more detail about the property including smoke alarm and safety switch presence, together with more detail about the sale transation 4. Calculate what stamp duty and transfer fees are owing and complete the appropriate forms from the Queensland Revenue Office. 5. Submit both the forms and payment with consideration to the instructions under Queenslands eConveyancing mandate (from 20 Feb 2023) Assessor feedback Resubmission required? Document classification: Confidential Page 133 of 135
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Task 26: Question 5 When the lender is ready for settlement, they will contact the borrower’s solicitor and inform them of the expected settlement date, and request details of funds to be distributed at settlement. The lender will then prepare a pre-settlement costing sheet and forward to the borrower’s solicitor in preparation for settlement. With the broker working closely with the borrower’s solicitor, when they receive a copy of the costing sheet, the broker can then make sure that all the particulars are correct. For this task you are required to prepare the following pre-settlement statement for the purchase of the investment property for Ravi and Alice Patel. Student response to Task 26: Question 5 Purchaser/s: Patel, Ravi & Alic Property: 3 Premier Street, Kingswood NSW 2747 Purchase Purchase price: $660,000 Less: Deposit paid ($66,000) Subtotal $594,000 Adjustments Plus Council rates Purchaser allow 173 days including sewage and water $663.56 Less Vendor allows discharge or mortgage fee ($350) Amount due on settlement to vendor $594,313.66 Disbursements Eastern Conveyancing $1,500 Land transfer/stamp duty & fees $24,765 Amount due on settlement from purchaser $620,578.66 Assessor feedback Resubmission required? Document classification: Confidential Page 134 of 135
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Task 26: Question 6 You are now at the closing stages of the loan process with this client. (a) How and where do you file the information you have communicated with them? (b) Once the settlement concludes, what else would you do to ensure you communicate with this client effectively? (30 words) Student response to Task 26: Question 6(a)–(b) (a) The Privacy Act requires handling of this in accordance with Part 2, section 13 and the Australian Privacy Principles. Further, the Best Interests Duty would arguably require a copy of this to be kept as evidence of the Broking process. Accordingly, I would keep an electronic record of the information and communications with them filed in accordance with our documented record management policy where records are easily located, legible, identifiable and traceable and archived when obsolete (b) Once settlement has concluded I would get in touch with their solicitor and lender to confirm everything went smoothly, then I would call the client myself and congratulate them. If there were any issues I would find out what they are, figure out what’s needed and communicate that as quickly and effectively as possible to the client so as to rectify the situation Assessor feedback Resubmission required? Task 26 — Assessor feedback: You have demonstrated a good understanding of the topics covered in this task question and achieved competency Date assessed: Click here to enter a date Does the student need to resubmit? Questions that need to be resubmitted First submission Resubmission END OF Document classification: Confidential Page 135 of 135
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10:04 Assignment Details ATG-110-20A01: Financial Accounting (Session II Summer 2021) 7474 unread replies.7575 replies. Please read and respond to TIF 12-2 on page 623. Review the rubric to ensure you receive full points for this discussion. Discussion Rubric- 25 points(1)_(3).docx *After you have posted your answers, please reply to three other students' posts. This discussion board was set up so that you will not be able to see others replies until you post your own. Search entries or author Filter replies by unreadUnread Collapse replies TIF 12-2 Issuing Stock 1. ETHICS Lou Hoskins and Shirley Crothers are organizing Red Lodge Metals Unlimited Inc. to undertake a high-risk gold mining venture in Canada. Lou and Shirley tentatively plan to request authorization for 400,000,000 shares of common stock to be sold to the general public. Lou and Shirley have decided to establish par of $0.03 per share in order to appeal to a wide variety of potential investors. Lou and Shirley believe…
X Topic: Discussion - What is the rol X + rses/1545/discussion_topics/15677?module_item_id=111468 Q Search entries or author... All > ↓ Sort View Split Screen Expand Threads You must post before seeing replies. Edit history will be available to instructors. Due Jan 4, 2025 11:59pm 时☆ 10 points possib Discussion - What is the role of ethics in accounting? Requirement: Include Introduction, Body, and Conclusion. Your initial Discussion posting should be at least 150 words in length. 9 Replies, 9 Unread Be sure to include a related Title, at least two different citations and references to support your statement Read and post brief responses to at least two of your classmates' postings (minimum 75 words).
G me Insert Design Layout References Management Accounitng-1 Student Activity-Word 6 Mailings Review View Tell me what you want to do... Sign in Shan bri (Body) -11AA Aa E-E-S-3811 Iu・axxx ・ツ・A・ミョ AA = Find- AaBbCcDc AaBbCcDc AaBbC AaBbCcl Replace ·田 1 Normal No Spac... Heading 1 Heading 2 Select- Font Paragraph 2 Styles GI Editing Assignment Problem Anand Kalaimani Al Harthi SAOG located in Muscat Sultanate of Oman involved in manufacturing of Drugs and Pharmaceutical Industry from 1981 to till now. The SAOG Company has provided the following information for the months of September, October, November and December 2023. Month Sales Material Wages Postage Electrical Other September Expense Expense 10,000 6,000 350 1,200 1,000 5,000 October 12,500 7,500 550 2,400 2,000 6,000 November 13,600 8,200 850 3,600 3,000 5,500 December 19,400 9,000 950 4,800 4,000 3,200 Additional information: a) Cash Balance on 1/10/2023 is RO X000000 b) Sales 25 per cent is for Cash in the same month. 50 per…
Accounting practice problem (first three sub parts have been answered , just need remaining sub parts answered)- I attached a picture of the instructions and I attached a picture of the excel spreadsheet. Anywhere it says "formula" on the excel spreadsheet, needs the formulas (answers).
A B C D E F G K M N O P Formula: Divide; Cell Referencing Using Excel to Perform Vertical Analysis Student Work Area PROBLEM Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to this work area. Data from the comparative balance sheets of Rollaird Company is presented here. December 31, December 31, Using these data from the comparative balance sheets of Rollaird Company, perform vertical analysis. 2022 2021 Accounts receivable (net) 2$ 460,000 $ 400,000 1. December 31, 2021 Inventory Total assets 780,000 650,000 December 31, 2022 3,164,000 2,800,000 Amount Percent Amount Percent Accounts receivable (net) $ 460,000 $ 400,000 Inventory 780,000 650,000 Total assets 3,164,000 2,800,000
Need  help in feeling out the chart. Thank you
multiplymovement.com/english_multiply.pdf WileyPLUS WileyPLUS: MyWileyPLUS | Help I Contact Us | Log C Weygandt, Accounting Principles, 13e FINANCIAL/MANAGERIAL ACCOUNTING (ACC 124/125/201/20 CALCULATOR STANDARD VIEW PRINTER VERSION 1 BACK NEXT Exercise 10-13 a1-a2 (Part Level Submission) (Video) Gill Company, organized in 2020, has the following transactions related to intangible assets. 1/2/20 Purchased patent (7-year life) $595,000 4/1/20 Goodwill purchased (indefinite life) 360,000 7/1/20 10-year franchise 480,000 9/1/20 Research and development costs 185,000 - (a1) Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of December 31, 2020, recording any necessary amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0…
Q1: Write an e-mail to technical support team of your college to retrieve your login credentials. In order to make your e- mail effective mention all the important details and reasons to prioritize your response
E Chapter 5 Homework - FINANCIA X O NWP Assessment Player UI Appli X b Answered: The accountant of Lati x M Inbox - dhyani11141999@gmail. X b My Questions | bartleby + i assessment.education.wiley.com/was/ui/v2/assessment-player/index.html?launchld=1d52287e-dfd8-4d2a-80c9-4cbf51a01297#/question/5 E Chapter 5 Homework Question 6 of 6 > -/ 1 View Policies Current Attempt in Progress The comparative balance sheets of Constantine Cavamanlis Inc. at the beginning and the end of the year 2020 are as follows. CONSTANTINE CAVAMANLIS INC. BALANCE SHEETS Dec. 31, 2020 Jan. 1, 2020 Inc./Dec. Assets Cash $ 45,000 $ 13,000 $32,000 Inc. Accounts receivable 91,000 88,000 3,000 Inc. Equipment 39,000 22,000 17,000 Inc. Less: Accumulated Depreciation-Equipment 17,000 11,000 6,000 Inc. Total $158,000 $112,000 Liabilities and Stockholders' Equity, Accounts payable $ 20,000 $ 15,000 5,000 Inc. Common stock 100,000 80,000 20,000 Inc. Retained earnings 38,000 17,000 21,000 Inc. Total $158,000 $112,000 Net…
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