Oral

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School

Kaplan Business School *

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FNS40815

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Management

Date

Jan 9, 2024

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docx

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Uploaded by SuperGoldfinch3960

Role play 1 Do you consent to this being recorded? Hi Jennifer and Philip, Please take a seat. Can I get you drink? Water/Coffee? Before we get started I’ve got a couple of legalities I need to run through with you first; Legally, I must provide you the credit guide, so here’s printed copy to take with you. It outlines preliminary information about myself as a mortgage broker and the company I work for. It includes the list of lenders that we have access to and a break down of the top lenders that we use. Secondly here’s a quote for my services. As you can see it is zero, and I am paid in commission from the lender. Can you please sign and date here to accept the quote. Serviceability Calculator My role in the process is to act as the intermediary between yourself and the selected lender. I’ll collate all of the information and present you with the best options that suit your needs. Basically I’ll do all of the leg work for you, and there will be no charge as I will be paid by the banks.

When contacting me, I’ll try and get back to you within 1-2 business days, if it is marked urgent, I’ll try and respond that day. During the loan process, I’ll give you weekly updates via email and then call you once we have and decision from the bank. Is that in line with your communication preferences? I have access to over 50 lenders through my software I will always act in your best interests, I will suggest the best loan for you, not which earns me the most commission. Given that you’d like to act quickly for the apartment, there are some lenders that won’t be suitable as they take a bit longer to approve a loan. Not to worry, I’ll still find you the best deal I can. So now that you have signed the quote, just wanted to confirm a few details. You are looking to be the owner occupier of the property? And how long would you like the loan term for? You’d like to make additional repayments and have an offset and redraw facility? Looking into the future, do you have any plans for renovations? Any planned large expenditures or reduced expenditures such as holidays or one of you reducing your work hours? Just to confirm, due to the higher LVR, you are aware that you are required to pay LMI? This will be added into the loan. Also LMI covers the lender in the event of a default, not yourselves? Now you’ve requested some certainty in loan repayments, would you be open to split loan? So part fixed, part variable? So you’ve decided on a fixed rate loan due to uncertainty in future interest rate movements. Just thought I’d clarify that whilst you’ll lock in certainty of repayments during the fixed period, you’ll comparatively pay extra if the interest rates were to decrease more than the lender currently expects. Many fixed rate products limit the amount of additional repayments per year, which means potentially paying additional interest. Additionally some fixed rate loans will limit your ability to sell the property during the fixed period, without incurring financial penalties. Any questions? So almost done. Thanks for bringing in the documents requested in, can I please get a copy of your tax return too? Your TFN is important and you are correct to guard it. Legally, you are not required to provide it, however it will slow down or halt the process. Ultimately it is your decision. As you can see it will be stored on our secure server and only limited staff have access to your file. Thanks again for your time today. I’ll get to work finding you the best deal and be in touch tomorrow or the next day with a proposal document for you.

Role Play 2 Do you consent to this being recorded? Good morning Phillip and Jenny, welcome back. To open the meeting, I’d just like to confirm your requirements. 2 bedroom, 2 bathroom apartment in Bundoora. Purchase price $490,000 LMI capitalised into the loan Your maximum contribution is $77,000 including a $50,000 deposit $35,000/year living expenses 30 year loan, with variable rate and premium features. Additional repayments without penalty Redraw and offset facility Fortnightly repayment option Access cards via card. Is that correct or is there anything that I have missed? I’ve created the Proposal document which I’ll email to you aswell. It comprises two home loan options that meet your requirements. Move Bank and BankWest Split loan 60% fixed and 40% My suggestion is to go with Bankwest, it provides a couple more features, such as up to 9 offset accounts and more credit cards to choose from. BankWest meets your requirements for a 30 year premium loan, up to 9 offset accounts, and a fortnightly repayment option. The reason for presenting a split loan, as it is almost hedging your bets. Have the certainty of repayment with the fixed loan, but allow a decrease in repayments should the interest rates drop. The risks involved include a comparatively higher interest rate on the fixed portion should interest rates fall. – Loan term: 30 year loan – interest rate 4% – loan amount 445,080

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– fees and charges – zero from me, application fee is waived and an annual fee of 395 is payable Are you happy with this product and do you feel like this is suitable to your needs? Any Questions? How do I reduce the long-term interest cost and pay off the loan more quickly? By making additional repayments, you will reduce the long term cost and pay the loan off faster. Can an offset account can be held at another bank? yes some banks permit you to have an offset account with another bank, however I believe having up to 9 accounts with bank west is a good way to proceed. Is there any reason you’d prefer to have an offset account with a another bank? No reason, just curious If my husband or I lose our income, how the repayments can continue to be made to pay off the loan? Home loan protection insurance is product that you are after if you are concerned. I can refer you to a good insurance broker if that is your preference? Any more questions? So if you are happy to proceed with the bank west split loan, can you please sign the application and privacy forms. I’ll email you the terms and conditions and product disclosure statement. To get the ball rolling, can you please email me your latest payslips and bank statements. From here, I’ll submit the application. The bank will then collect and verify data and assess the application again their policies and underwriting standards, guidelines and procedures. This usually takes around 10-15 business days. They’ll then get back to me and I’ll pass on the result. There may be some pre-settlement criteria associated with the letter of offer. This is all normal and part of the process. So I’ll get this application submitted once I have a copy of your latest payslips and bank statements. And then fingers crossed I’ll be calling you with good news that the lender has come back with a letter of offer. The goal is to communicate the result to you within 24 hours, however it is generally within a few hours. Thanks

Role Play 3 Hi Wendy, Your mortgage broker calling, how are you? Unfortunately I don’t have good news for you today, XYZ bank won’t accept the loan in it’s current structure. The problem lies as the LMI provider won’t accept the property offered as security due to the location. However, if we were to use the equity in your house, I’m confident we could get the loan approved. I know you weren’t keen on the idea, but this will allow the loan to be approved and will save you approximately $10,000. Call solicitor Call 2 Hi Belinda, Just calling regarding wendy evan’s loan application. Unfortunately it has not been approved in its current format due to the banks LMI provider not accepting the property offered as security due to the location. Due to this, Wendy has agreed to restructure the loan and use the equity in her current house to allow for the loan to progress, which means there is no requirement for LMI and the bank will approve the loan. Call 3 Hi Wendy, Great news, the bank has approved the loan with the revised structure that we discussed earlier. Congratulations! For this to proceed, the bank now requires some more information. They are specifically requesting a copy of the building insurance for both properties, and this will be a requirement in the credit contract so we might as well try and stay ahead of the curve. This is to ensure the value of the property is protected, should something happen, the bank is not left short. Call 4

Hi Belinda, John the mortgage broker here again. I’m calling regarding the Wendy evan’s loan. Good news, it has all progressed smoothly with the loan contracts are signed and received by XYZ Bank and they are all in order. Just calling to advise you that all parties are ready for settlement. XYZ bank advised that they will be in touch with you in the next few days to make arrangements for settlement. Thanks.

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Role Play 4 Hi Alice how are you going? John the mortgage broker here. Just calling to see if you had any feedback regarding the service you received throughout the application and settlement process ? Yes, we’d like to say that we are very happy with the way it all turned out and thank you for recommending a split loan, that was a great idea. So I take it you are you happy with the loan products? If you consent, I can run an annual home loan health check to make sure you are getting the best deal? With the market being so fluid, it is worthwhile monitoring the interest rate to ensure that you are receiving the best deal I can offer an annual property evaluation to see how much equity you have built up in both properties. Once you have completed the renovations, I can refer you to a real estate agent who can manage your investment property? I’m also happy to assist when you are ready to purchase a property in Nelson Bay Did you have any questions? What are the fee’s associated with the post-brokering services? Nothing, that is all part of the service to help you. That’s great, and how to I take you up on these service? You can contact me via phone or email to request any of the services. Since we have dealt with you the whole time, can we come directly to you and not deal with anyone else? Of course, that is the benefit of dealing with a small boutique firm such as ours. Plus you have all of my direct contact details. If I am on leave, I will set up an out of office with the contact details of a trusted colleague so you will be in safe hands all the time.

Role Play 5 Meeting 1 Client file C File A File B – delegate Quarterly client prospecting reporting due in two days Home loan application target has been increased from 8 to 10 submitted applications per broker per month During next week’s meeting, can you please inform team of this and provide training on buyer resistance? Meeting 2 Delegate file b due to being on leave 2 cpd items Time Management Anti-Money Laundering and Counter Terrorism Financing Act From MFAA Meeting 3 Item 1 — Loan application target for next month We have had our monthly loan application target increase from 8 to 10 per month. Strategy – encourage word of mouth promotion from all clients Any one else have any suggestions for strategy to increase our productivity? Everyone to contact five referral sources in the first week of the month. Oh great idea. That shows a great understanding and we have been a bit relaxed in that area. Well done. Any other questions regarding item 1 of the agenda?

Just to clarify, is this for applications in the pipeline or applications that have been submitted to the lender for the month? Item 2 — The weekly training topic: ‘Buyer resistance, conflict resolution and persuasion techniques’ Given that this topic has been raised numerous times over the past month we thought it would be prudent to do a training session on it. Two reasons which we may encounter resistance when closing a sale with clients are: -some customers may be insecure or lack confidence in making buying decisions, particularly large buying decisions -the customer does not trust the broker or there is no rapport between the broker and the customer A strategy to overcome both reasons for resistance is by acknowledging the objection. Acknowledge that it is generally the biggest purchase people make in their life and that their feelings are completely warranted. We should emphasis that is why they have made the correct action in coming to us, so they can rely on our knowledge and experience to ease their minds and find the right product for them. We can also provide references from past customers who have had positive dealings with us. Also acting in an appropriate and genuine manner will help build rapport with the client. Are there any other suggestions? I think it is important that we are listening the client Yes, that’s important to highlight, it is something we should all be doing already. Remember the previous lesson on active listening? I’ve got the notes if anyone would like to review them and refresh their mind. We should all ensure we are listening to the customers objections and not making assumptions. We are nothing without our clients so listen to the best of our ability and deliver the best product and service we can. Great suggestion.

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Role Play 6 Good morning it is John from Capital City Mortgage Broking, how are you? Is now a good time to talk? The reason for today’s call is to see if you are interested in developing a working relationship between our companies. Home loans, commercial loans, investment loans, refinancing, guarantor loans, development loans and construction loans. We’ll do all the leg work with finding the best deal for your client so that the purchase is a stress-free process. I feel this could be a good symbiotic relationship which benefits both of our businesses. Are you interested? We already have some pre-approved customers looking for a property and others that are looking to either expand or downsize that we can refer to you too Happy for you to discuss this with the rest of your team and have a think about it. When would be a good time to follow up to see if we can formalise an agreement between our companies? Thanks, Hi, John from Capital City Mortgage Broking here, how are you? Great thanks, just ringing to say thank you for the referral and expect a delivery at your office tomorrow as a gesture of our appreciation for your referral. As we are expanding and looking for more business, my manager has approved an offer of 10% of our upfront commission per referral to your company to develop our relationship going forward. Would this be of interest to you? For privacy reasons I cannot disclose any details, which you can assure an any future referrals will be treated with the same confidentiality. Thanks again and please don’t hesitate to contact us if you need any assistance.

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