Certificate IV in Finance and Mortgage Broking
Assessment Task
FNS40815
Your details:
Name:
Himani Sharma
Address:
14Navigator Avenue Sheidow Park 5158
Phone:
0433318480
Company name
Email:
[email protected]
Your assessment task
You are required to keep a copy of your assessment task for a period of 12 months.
Submit your assessment to our Education Team via [email protected]
Plagiarism Statement
All assessments must be your own work and not a result of plagiarism or collaboration with other students or workmates.
Assessment
The pass mark is 70% for each element. If you do not achieve this, you will receive feedback via your email address and be asked to resubmit your assessment for a second marking. Assignments will not be returned to you as they need to be retained for by us for verification and audit purposes.
Task
Assessments
Total
Mark
Pass Mark
Actual
Mark
1
Identify and Interpret Compliance Requirements
27
19
2
Deliver and Monitor a Service to Customers
39
27
3
Contribute to OHS Hazard Identification & Risk Assessment
41
29
4
Manage Personal Work Priorities and Professional Development
24
17
5
Develop and Nurture Relationships with Clients, Other Professionals and Third Party Referrers
17
12
6
Promoting the Effective Use of Credit
15
10
7
Prepare a Loan Application on Behalf of Mortgage Broking Clients
64
45
8
Steps Taken by the Credit Provider
23
16
Total
250
175
Assessor’s Initials: ____________________
Assessment Date: ____________________
Introduction
Objective
The objective of this Assessment Task is to demonstrate that you have the skills and knowledge required to conduct a client relationship and comply with statutory, industry and organization compliance requirements.
Elements to be assessed
To achieve this objective, you will need to demonstrate your ability to:
The assessment tasks in this assessment will allow you to demonstrate your knowledge and skills in relation to these elements.
Assessment process
Start by:
1. Reading the Assessment Task.
1. Type your answers to the assessment tasks into this template document (hand-written answers are not accepted)
1. Submit your completed document by uploading it on the ‘Ready for Assessment’ area of www.CPDplus.com
Don’t forget to keep a copy and retain it for 12 months.
Need help?
If you have any questions or would like to request a digital copy of this assessment task, please email the Mentor Support Team at
[email protected] Statement of Completion
Upon successful completion of this assessment you will be awarded the Statement of Completion forFNS40811 Certificate 4 in Finance and Mortgage Broking.
Task 1: Identify and Interpret Compliance Requirements
1. Identify compliance requirements
Mortgage brokers face important compliance requirements, the foremost among them being the reasonable lending provisions of the NCCP Act. The penalties for non-compliance include loss of license (for businesses) and removal from the industry (for individuals). If fraud is involved there may also be the criminal penalties of fines and / or imprisonment.
Compliance requirements are not static. It is therefore important to stay up to date with them.
Mortgage brokers also need to keep up-to-date with the actions of the regulatory authorities such as APRA and the Reserve Bank. Their actions may not amount to direct regulation, but through their effects on interest rates and bank lending these authorities can have a very direct impact on the business mortgage brokers are able to do.
1. A key requirement of the responsible lending obligations is the ‘unsuitability test.’ What must a mortgage broker do to comply with the unsuitability test?
No
Mark
1.
Reasonable inquiry of the borrower's requirements and objectives
/1
2.
Make a reasonable inquiry about the financial status of the borrower
/1
3.
Take reasonable steps to verify financial status
/1
1. List the sorts of items a client’s requirements and objectives could include (as indicated by ASIC).
Mark
1. - the required credit line or the maximum amount sought;
2. - the time range required;
3. - the purpose and interests sought; and
4. -Whether consumers seek specific product features or flexibility and understand the cost and any other risks of these features.
/2
1. Leading credit providers and other financial organisations have code of ethics, sometime called codes of conduct. Select one of them and summarise it by itemising its main principles.
Mark
False and Misleading Behavior - The Australian Consumer Law (ACL) prohibits companies from misleading and deceptive conduct and false and misleading statements in trade or business. The court may impose a fine, issue an injunction to prevent the prohibited act from continuing or being repeated, or request certain actions, such as cancellation of the contract and compensation. The offence also overlaps with fraud under criminal law and may therefore be subject to fines and imprisonment.
/4
1. In point form, list the key information that the NCCP Act requires to be contained in a Credit Guide.
Mark
- the name, contact information and Australian L/C number of the licensee;
- detail any fees and charges that consumers should pay
- details of any commissions that may be received from the lender;
- the names of the licensee's six primary lenders;
- Detailed information on complaint handling, including detailed contact details for internal and external dispute resolution processes; and
- Information about the licensee's obligation to provide a written copy of the unsuitability assessment upon request.
/3
1. It is important to keep up to date with compliance requirements so that the required changes can be made to organization procedures and product offerings.Suggest three sources that you can use.
Mark
1. Professional associations such as the Australian Mortgage and Finance Association (MFAA)
2. The Australian Financial Brokers Association (FBAA) notifies its members before a change is requested.
3. The professional association's code of practice can also be used as a reasonable guide to compliance requirements.
/3
1. Explain the requirement for Australian Credit Licensees to keep a training register.
Mark
ASICs require that business compliance measures be documented, although it acknowledges that document levels will range from detailed policy and procedure manuals in large organizations to checklists in smaller organizations. Once the compliance system is established, the compliance system is implemented and maintained. Training plays an important role in this process, but it is not enough in itself. Compliance and ethical behavior must be the dominant value of the business.
/2
1. Explain APRA’s current attitude towards bank lending for investment properties.
Mark
Australian Prudential Regulation Authority (APRA) introduced restrictions that have impacted lending for investment purposes. The banks have responded to the APRA changes by changing serviceability requirements on investor loans; making it more difficult for investors to gain finance. Borrowing capacity has been downsized, interest rates have risen and the repayments on existing debt are assessed at a much higher rate.
/2
Sub-total /10
Continued
Task 1: Identify and Interpret Compliance Requirements Continued
1.2 Interpret, analyse and prioritise identified compliance requirements
Some of the compliance requirements are difficult to meet. Unfortunately, also there have been some ‘rogue’ mortgage brokers who have failed to comply – to the disadvantage of their clients.
The finance planning industry has been plagued by non-compliance in the largest planning groups, with the image of the industry being substantially tarnished as a result. It may not suffer greatly because of the absence of an alternative source of financial advice.
This is not so with mortgage brokers. They are just establishing their reputation and consumers always have alternative of going to the lenders directly.
1. Select three tasks you perform on a regular basis that are subject to compliance requirements.
No
Mark
1.
Find a lender;
/1
2.
Complete the loan application;
/1
3.
Submit the loan application to the bank or other loan provider and wait for their approval.
/1
1. Identify the compliance requirements that are relevant to the three tasks selected, indicating the name of the relevant legislation, regulation or code of conduct.
No
1.
ASIC
/1
2.
Australian Consumer Law
/1
3.
The National Consumer Credit Protection Act 2009
/1
1. How does your organisation monitor your compliance?
Mark
Reviewing and monitoring compliance areas and procedures is both an essential business function and an ASIC regulatory requirement. The only way to ensure that the process is effective is to review the process and evaluate the results, and often perform gap analysis and review (Supriyadi, and Ramdan, 2017).
/2
Sub-total /8
Total /27
Task 2: Deliver and Monitor a Service to Customers
2. Identify customer needs
The relationship with a client is generally described as beginning with the establishment of empathy. In other words, it is first necessary for a mortgage broker to establish that he / she is truly interested in the client and the client’s needs. It is only after that that the mortgage broker has established the right to interview a client.
1. Use the internet or any other source to find a definition of empathy.
Mark
Empathy is the ability to understand or feel the things that another person experiences in another person's frame of reference, the ability to place himself in the position of another person.
/1
1. List three open-ended questions that assist in developing empathy with a client? How do such questions indicate empathy?
No.
Mark
1. What makes you think it may be time for a change?
/2
Public issues provide information about needs and needs, which is what any mortgage broker must have.
/1
2.So, what’s going on?
3.How’s business?
1. List and explain the steps involved in an ‘active listening approach’.
Mark
· ASK QUESTIONS - Find out about needs and wants of the client.
/1
• Return - Reiterate what the customer says about their needs to ensure that the details have been heard and understood, and that the spokesperson is encouraged to proceed. The customer's thoughts and feelings can be used as a guide for further questions.
/1
· SUMMARISE - to make sure both sides agree on the facts.
/1
(d)How is client service commonly monitored in your organisation? What are the two possible outcomes?
No.
Mark
1.
Questionnaires
/1
2.
Client surveys
/2
Sub-total /10
Continued
Task 2: Deliver and Monitor a Service to Customers
2.1 Deliver a service to customers
In a survey on the reasons for referrals conducted by David Maister, only 10% were due to the quality of technical work. The remaining 90% of referrals were due to the quality of service.
This indicates that the key to maintaining client relationships and gaining referrals is the provision of outstanding service. This has been described by Maisteras ‘over-servicing’.
1. Describe three ways in which a mortgage broking organisation can attempt to ‘overservice’ clients?
No.
Mark
1.
Speak quietly and rush to convey a sense of urgency to the customer.
/1
2.
Feedback should only be given by the customer
/1
3.
Non-verbal communication is better than verbal communication when dealing with angry customers.
/1
1. How would you keep a client informed about the progress of an application as it passed through a creditor provider’s hands? What approximate timing might be involved?
No.
Mark
1.
The time between accessing the customer and forwarding the credit request to the credit provider and the advice provided to the customer should not exceed two days.
/2
2.
Importantly, information should be passed on to credit providers in a timely manner. The key words are as soon as possible after the initial assessment is completed on the same day as soon as possible.
/2
1. Describe how you might attempt to resolve conflicts with clients.
Mark
Recognize situations that are evolving and changing patterns immediately by developing non-aggressive methods. Then change the situation from a confrontational struggle to a situation where both sides can win. This is often referred to as the "win-win" situation.
/2
1. How do you can prepare clients for the hiccups that can happen while their credit application is being processed
Mark
If possible, please provide temporary updates to the borrower - Do not ask the borrower to provide unnecessary information, especially information that is strictly unrelated or information already owned by the lender
/2
Sub-total /11
Continued
1. The chapter on Operating a Mortgage Broking Business contains an example suggesting that a mortgage broker acting in the best interests of clients should act as a Protector rather than an Expert. What are the implications for this in regard to (i) advice given to clients and (ii) recommending the most suitable loan products?.
No.
Mark
1.
New products are introduced from time to time and the functionality of existing products may change. Mortgage brokers need to be alert to any information about product provider changes and disseminate information through team meetings and seminars.
/2
2.
Brokers should also be prepared to discuss different products with their customers and point out their different features in order to make informed choices.
/2
1. How could you prepare yourself to deal with client concerns?
Mark
Sometimes it exists in the form of concerns about brokers or boycotts of product terms (such as interest rates). At other times, it takes a more formal form of complaint. Either way, it is necessary to overcome the resistance as much as possible. Once the need to win is recognized and a more normal conversational tone and voice mode are employed, the challenge is to make the outcome of the victory, if needed.
/2
1. Give examples of the following legal breaches: breach of the duty of care, false and misleading conduct, unconscionable conduct & conflict of interest without disclosure.
No.
Mark
1.
If their negligence causes them to stumble on a carpet, the agent will be responsible to the customer. Similarly, if the advice provided by negligence will cause economic losses to them, they should be responsible to the customer.
/1
2.
In that case, there may be more fraudulent activities, such as providing false occupations and forged documents. (false and misleading behavior)
/1
3.
The company did not give the applicant enough time to read the agreement, ask questions or seek advice; and did not disclose or explain the key terms of the contract. (unreasonable behavior)
/1
4.
A conflict of interest is where a mortgage broker recommends a particular financial product because it allows them to get a larger commission even if the product is not suitable for their customers.
/1
1. Once a desirable market segment has been identified, a mortgage broking business can put its mind o developing suitable marketing strategies. List examples of different strategies that might be used.
Mark
By working with the ideal client, the broker is more likely to get attention, which is an essential professional quality. They are also more likely to establish communication with customers, leading to “participation” – that is, the long-term relationship that personal relationships bring. – look at your own ethnic and social background, the type of person you grew up with and the person you are attending. type. Considerations such as this should lead you to the type of person you want to deal with. Again, maybe you are the kind of professional they like to deal with.
/2
Sub-total /12
Continued
1. What steps can be taken to keep up to date with product changes and ensure that this knowledge is properly disseminated?
Mark
Subscribe to online news information such as Mortgage Choice, ING Direct, Brokernews.com.au - All the latest news about product changes can be emailed to all employees and then posted at the conference.
/2
1. What are the procedures for dealing with client complaints in your organisation?
Mark
Hear a complaint. Accept the ownership of the issue. - To understanding. Remember, this person complains about your business, not you personally. - Record complaints. - Make sure you have all the facts. - Discuss ways to solve problems. - Keep your promise. - Hurry up - follow up.
/2
1. What normal protocols should for protecting the confidentiality of client files?
Mark
Since all customer information is kept confidential, all customer records are always stored in a secure environment. Only authorized employees can control access to customer information/records. Customer records are the property of the organization, but customers can request access to their own records by mail or electronically, as well as by the general manager, the authorization of the independent living service.
/2
Sub-total /6
Total /39
Task 3: Contribute to OHS Hazard Identification & Risk Assessment
3. Contribute to workplace hazard identification
Occupational health and safety hazards are often considered only in terms of physical injury, perhaps the result of working with heavy machinery, working in an excessively noisy environment, or slipping or falling. Just as relevant, however, is work-related stress. This describes the physical, mental and emotional reactions of workers who perceive that their work demands exceed their abilities and/or their resources (such as time, help/support) to do the work.
For the questions that follow, please read ‘Overview of Work-related Stress’ from the NSW Government. It may be found at:
http://www.safework.nsw.gov.au/__data/assets/pdf_file/0008/99233/SW08367-1117-395314.pdf
Other ‘Tip Sheets’ from the same website may also be useful.
(a) How would you define workplace stress?
Mark
Try to keep up with or respond to the needs of working in the workplace. - Employees stated that they were unable to comment on the way they work (lack of control). - Employees said they suffered unacceptable behavior at work, especially bullying. Employees say organizations often interact with them as they move through organizational change.
/4
(b) Suggest at least two ways in which work-related stress may affect client relationships.
Mark
• Conflicts may increase and relationship quality may decline
• Customer satisfaction may decrease
/2
(c) Suggest at least four approaches you can take to reduce workplace stress? (Hint: you may find suggested ways if you key ‘handling workplace stress’ into a search engine).
Mark
1. Do not apply undue pressure - making a request or setting a deadline that cannot be met will not yield any benefit. When setting goals, make sure they are measurable, achievable, and time-limited.
2. Attention - Pay close attention to the mental health of colleagues. Have their behavior changed, or do they complain frequently? - to be frank
3. Stop and think. What might be the influencing factor of your stress, and where does it start? Is there a job that requires more help, or do you need to spend more time outside?
4. Support - Pay close attention to colleagues and pay attention to their workload. Sometimes just asking a colleague if they need help will make them feel better and get more support from the team.
/4
Sub-total /10
Continued
Task 3: Contribute to OHS Hazard Identification & Risk Assessment Continued
3.1 Gather information about workplace hazards
In assisting in the control of work-related hazards, you will need to be access suitable information.
Please read ‘Glossary of Job Demands and Job Resources’ from the QUT/ANU People at Work project. It may be found here:
http://web.archive.org/web/20150227212940/http://www.peopleatworkproject.com.au/LiteratureRetrieve.aspx?ID=174670
1. Explain the distinction between ‘job demands’ and ‘job resources’ risk factors.
Mark
Job requirements: work stress, emotional needs
Work resources: career opportunities, supervisory guidance, role clarity and autonomy.
/4
1. Identify two ‘job demands’ risk factors that are relevant to your workplace and describe what detrimental effect they might have.
No.
Mark
1.
• Many reasons for work-related stress include long hours of work, heavy workloads, and work that leads to a lack of work environment
/ 2
2.
• Insecurity and conflict with colleagues or bosses lead to poor relationship with colleagues or bosses (Kolbe, and Zagst, 2009).
/ 2
Sub-total /8
Continued
Task 3: Contribute to OHS Hazard Identification & Risk Assessment Continued
3.2Contribute to OHS risk assessment
Once risks have been identified, they should be controlled. A way of doing this is to use “job resources” available in the organization.
Once again, please refer to the ‘Glossary of Job Demands and Job Resources’ that was referred to...