代写 Finance and Mortgage Broking (CIVMBv1) assignment
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代写 Finance and Mortgage Broking (CIVMBv1) assignment
CIVMBv1_ASTipSheet
Assignment
Finance and Mortgage Broking (CIVMBv1)
Assignment Tip Sheet
Before you begin
Read everything in this document before you start your assignment for Certificate IV in Finance and
Mortgage Broking.
About this document
This document has these parts:
• Instructions for completing and submitting this assignment
• Results and feedback
• Section 1: Case study 1 — Malcolm and Susan Johnson
• Section 2: Case study 2 — John Simpson
Completing the assignment
Saving your work
Download this document to your desktop and save your work regularly. You should type your answers in
the spaces provided.
The assignment
This assignment is divided into 16 Tasks. To finish this assignment, you must complete all 16 tasks.
The information and data you need to complete Sections 1 and 2 is presented in case studies at the
beginning of those sections.
Additional research
When completing the Client Information Collection Tool in Appendix 1, assumptions are permitted
although they must not be in conflict with the information provided in the Case Study.
You may also be required to source additional information from other organisations in the finance industry
to find the right products or services to meet your client’s requirements, or to calculate any service fees
that may be applicable.
Page 2 of 11
Submitting the assignment
You must submit your completed assignment as this Microsoft Office compatible Word document.
You need to save and submit this entire document. Do not delete/remove any sections of the template.
Do not save your completed assignment as a PDF.
The assignment must be COMPLETED before submitting it to Kaplan Professional Education.
Incomplete assignments will be returned to you ungraded.
The maximum file size is 5MB. Once you submit your assignment for grading you will be unable to make
any further changes to it.
You are able to submit your assignment earlier than the deadline if you are confident you have completed
all parts and have prepared a quality submission.
The assignment grading process
You have 12 weeks from the date of your enrolment in this subject to submit your completed assignment.
Your assessor will grade your assignment and return it to you in the Finance and Mortgage Broking subject
room in KapLearn at the Assessment tab.
‘Not yet competent’ and resubmissions
If sections of your assignment are graded as ‘not yet competent’ you will be given additional opportunities
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 competent’.
Make changes to your original submission. Use a different text colour for 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 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.
We are here to help
If you have any questions about this 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 student support staff. Please note that your tutor cannot pre-vet your assignment answers, but
they can help explain any concepts discussed in the subject notes.
Page 3 of 11
Section 1
Case study 1 — Malcolm and Susan Johnson
Assignment tasks (student to complete)
Task 1 — Initial disclosures
Following a personal introduction, and before you begin gathering information about the clients’ existing
financial situation or needs, there are certain disclosures you are required to make as a finance broker
regarding the way you are remunerated and the range and limitation of your services.
Identify and describe three (3) of these disclosures. (200 words)
Tips
Remember that you must identify at least three (3) disclosures here, and you should include a description
of each.
The disclosures you discuss should be those that a finance broker makes to prospective borrowers about
the range and limitations of their services.
Refer to Topic 1-2 and Topic 3-1 of your subject notes for information on disclosures.
Task 2 — Gathering and documenting client information
Complete the Client Information Collection Tool using the information provided in the case study,
(Appendix 1, page 27 of your assignment template).
Note: Any assumptions you make should be listed, and not be in conflict with the case study information
already provided.
Tips
代写 Finance and Mortgage Broking (CIVMBv1) assignment
You should complete the Client Information Collection Tool based on the information you have been
provided with in the case study, in line with the client’s current situation.
Any information you haven’t been provided with you should make assumptions for as long as they’re not in
conflict with the case study.
Ensure you complete all parts of the information collection tool, including: the Needs Analysis, Notes, the
Anticipated Fees and Charges, Loan Interview Diary, values for the vehicle’s, and their borrowing capacity.
The Notes page is especially important to capture all other relevant information about client’s goals,
objectives, or other matters they have discussed at interview as recorded in the case background
information and not recorded anywhere else in the Fact Finder.
It is important that loan amount, LVR and fees and charges are calculated correctly as your work here is
used in Tasks 3 and 6.
Page 4 of 11
Task 3 — Assessing the clients’ situation
1. Based on the information provided in the case study and using the tools available to you
(e.g. loan calculators, including those available on lenders’ websites), provide an assessment of
the clients’ borrowing ability and ability to service the loan they require.
Consider and comment on issues such as:
• borrowing ability in relation to the loan required
• deposit requirements for the loan required
• repayment ability based on the loan required
• likelihood that the clients will be able to meet their financial obligations
• do they require Lenders Mortgage Insurance (LMI), and if so, how much will it cost?
• any other issues that may impact, now or in the future, on the clients’ ability to meet their
obligations, including any possible risks.
Provide data to support your comments and conclusions. (750 words)
2. Stress testing the loan repayments
Most lenders add an additional 2-3% on to the loan repayments to make sure a borrower can afford the
repayments. If interest rates moved 3% higher, what would Malcolm and Susan’s loan repayments be,
do you think they would be able to cope with the extra repayments, and what could you recommend
that may remove this consideration as a risk factor?
Tips
1. Ensure that as a minimum you identify and assess the key elements — these are listed for you in the
question:
• Borrowing ability — make sure you show your calculations
• Deposit requirements — remember to separate deposit from allowance for fees and charges
• Repayment ability — make sure you show your calculations
• Likelihood of the clients’ meeting their repayment commitments — this will be based on your
assessment
• Is Mortgage Insurance required and how much will it cost — you might also consider the options of
how cost can be paid
• Any other issues that may impact now or in the future, in relation to ability to meet obligation or
possible risks
Any assumptions that you make should be clear in your answer.
2. Use an appropriate online loan servicing calculator to complete your stress test calculations.
Subject note reference is Topic 3-1.
Page 5 of 11
Task 4 — Responsible lending obligations
The National Consumer Credit Protection Act 2009 imposes ‘responsible lending’ obligations on brokers
that must be satisfied by all people arranging loan applications. The primary objective under responsible
lending guidelines is that the credit facility is ‘not unsuitable’ for the borrower.
Identify and describe the key factors that must be taken into consideration when assessing whether a credit
facility is ‘not unsuitable’ for a borrower. (100 words)
Tips
This task requires you to demonstrate your understanding of your obligations under the National Consumer
Credit Protection (NCCP) Act 2009.
It is essential when answering this questions that you identify and described the key elements that must be
taken into consideration when assessing whether a credit is ‘not unsuitable’ for a borrower.
Please refer to Topic 1-2 and Topic 1-3 for further information on determining if a loan is ‘not unsuitable’.
Task 5 — Reasonable enquiries
In the course of gathering information about the couple, you are required under the National Consumer
Credit Protection Act 2009 to make all ‘reasonable’ enquiries to determine a borrower’s objectives,
requirements and financial situation.
Identify at least six (6) ‘reasonable’ enquiries that you would make with the clients in the case study and
explain why these enquiries are important in terms of NCCP compliance. (200 words)
Tips
Remember this is your opportunity to demonstrate your knowledge to the assessor.
Do not simply list them, you must explain the purpose of each enquiry in your own words.
Refer to Topic 1-2 of your subject notes for further information.
Page 6 of 11
Task 6 — Prepare your recommendation
Incorrect or uninformed advice can lead to significant financial detriment for your client and lead to
possible complaints against you for misleading or deceptive and misleading conduct.
Therefore, all three questions of this task are ‘critical’ and you must demonstrate the required knowledge
in each to be deemed competent.
(a) Based on the information presented in the case study, prepare a written professional proposal to
your clients. (750 words)
The style and language used in the proposal should be appropriate to the case study client’s level of
understanding. It should be clear and concise, and written in language that is easy to understand,
while still remaining professional in its presentation.
You may base your response to this part of the assignment on either your knowledge of the products
currently offered by your own organisation, or the products offered by a lender you have researched.
In your proposal, you should include:
• a summary of your understanding of the clients’ needs
• a summary of their current financial position
• the product options you have considered to meet their needs
• the option you recommend and the reasons for the recommendation. Explain how the
recommended product meets the clients’ needs
• disclosures applicable to the situation (a summary of likely applicable disclosures is adequate).
Consider disclosures that are required by both legislation and by lenders codes of practice.
Note: List any assumptions you have made about the clients and their situation in order to complete
this part of the assignment. There are no rules regarding the format. Please use the format that best
suits you. Note that the credit guide in your resources is not a ‘written proposal’.
(b) (i) Describe the workings of any home buyer assistance schemes and stamp duty concessions that
may be available in your State or Territory. Would your client be eligible for any of these?
(150 words)
(ii) Provide a summary of all additional costs and fees that the couple should be made aware of.
(150 words)
Note: When considering your response to these questions, bear in mind the couple’s inexperience
with the borrowing and property purchasing process.
Tips
Part (a)
This task requires you to prepare a written proposal addressed to your clients, and as such you should
ensure that it is presented in a professional manner.
Consider if you were the client - would you be happy if you were presented with your written proposal?
The style and language used in the proposal should also be appropriate to the case study client’s level of
understanding.
As a minimum, your proposal must address each of the items set out in the question:
• a summary of your understanding of the clients’ needs
• a summary of the client’s current financial position
• the product options you have considered to meet the clients’ needs
• the option you recommended and the reasons for the recommendation. Explain how the recommended
product meets the clients’ needs
Page 7 of 11
• the amount of fees and charges as you have calculated and their options to pay any additional cost, if in
excess of their estimated amount
• a brief outline of Lenders Mortgage Insurance, the cost and options to pay, remembering they are not
experienced in these matters
• disclosures applicable to the situation (a summary of likely applicable disclosures is adequate)
Make sure you include any assumptions you’ve made about the case study in order to arrive at your
recommendations.
Part (b) (i). You now need to provide details of any home buyer assistance schemes or stamp duty
concession as they apply in your home State/Territory. Please refer to Topic 3-2 of your subject notes for
further information.
Part (b) (ii) You may add other costs here that you think will be of assistance to clients to prepare them for
purchases and move.
Task 7 — Advising on strategies
Following the presentation of your proposal, Malcolm and Susan say that they would like your advice
regarding strategies that will help them to pay down their home loan as quickly as possible.
• List strategies or methods that will help them achieve their aim.
Provide the advantages and disadvantages of each. (250 words)
Tips
Use this task as an opportunity to demonstrate your knowledge of strategies to the assessor.
For any strategies that you do discuss, make sure that you include both the advantages and the
disadvantages.
You need to explain to your client how each strategy works and how it may, or may not, be effective
for them.
It is important to explain the pros and cons of each strategy so that you can assess if your clients are
comfortable to proceed with it.
You should also aim to include examples of each strategy or method that you discuss.
And remember to include the disadvantages of each strategy – if you forget to include the disadvantages
you may be asked to resubmit your assignment.
Refer to Topic 1-3.
Page 8 of 11
Task 8
Malcolm and Susan have called to discuss whether they should consider fixing the interest rate on their loan
— they say their parents have said ‘you never beat the bank when you fix’, and yet their friends are telling
them about a loan where they can ‘have a bit of both’.
1. Explain the role of the RBA with respect to interest rates and why it is necessary to have these controls.
2. Suggest how Malcolm and Susan could potentially solve their dilemma.
Tips
For part 1, the assessor is looking to see that you can explain the role of the RBA in setting and monitoring
interest rates and the impact this can have. Refer to topic 1-1.
In part 2, you are required to consider the appropriate product option that might provide a solution to both
points of view. Refer to Topic 1-3.
Task 9 — Settlement
Outline in detail the steps a Lender should take post-approval in order to document, settle the loan and
administer the loan post-settlement. (300 words)
Tips
For this task, the assessor is looking to see that you understand the complete process of settling a loan
application from start to finish, including the correspondence that would issue to the clients informing
them that settlement has occurred.
Ensure you include details of every stage required in this process, in order to properly document the loan.
Refer to Topic 3-4 of your subject notes for further information that may assist you with this Task.
Page 9 of 11
Section 2: Case study 2 — John Simpson
Background
John has been a self-employed carpenter for 10 years, and operates his business under a
company structure.
He has approached you for help in arranging finance for a potential purchase of an investment property.
He was referred to you by his accountant, who is a friend of yours. Apart from purchasing the home he
currently lives in some 12 years ago, he has had no other experience in dealing with a mortgage
application, though he has recently obtained finance for a new work truck via his local bank.
He has found a property he likes, and has already secured the services of a solicitor to assist with
the purchase.
John currently owes $375,000 and estimates his home to be worth $650,000.
He has agreed to purchase the investment property for $300,000 and needs to borrow the full purchase
price plus $20,000 to cover stamp duty, and other associated costs including a $5,000 ‘cash reserve’ in case
there are delays in securing a tenant for the property.
After reading the case study above, answer the questions below.
Assignment tasks (student to complete)
Task 10 — Establishing level of financial knowledge
What communication skills might you use to establish and confirm John’s level of knowledge about credit
and finance and to establish her needs? (150 words)
Tips
Your response to this Task should demonstrate your knowledge of the different communication skills you
can use to confirm your clients understanding.
Refer to Topic 2-1 for further information that may assist you with this task.
Task 11 — Using equity
1. How is it possible for John to borrow 100% of the purchase price + costs?
2. Assuming John uses the same bank to finance his home and the investment property he wishes to
purchase, what is the loan to value ratio (LVR)?
Tips
Refer to Topic 3-1 for information on collateral.
Page 10 of 11
Task 12 — Self Employed special considerations
1. As John is self-employed via his company, name three (3) possible extra documents you will need to
obtain and assess?
2. If a Low Doc application is an option for the customer, name three (3) extra documents you will need to
obtain and assess.
3. Explain how applying for a ‘Low Doc Loan’ could lead the mortgage broker to be accused of
recommending an ‘unsuitable’ product.
Tips
1. What types of documents would a self-employed business owner have to hold to keep record of his
financial situation? Refer to Topic 1-3 and Topic 3-3.
2. What additional documents have not already been gathered that you will be required to obtain if
offering a ‘Low Doc Loan’. Refer to Topic 1-3 and Topic 3-3.
3. It’s important to understand the nature of ‘Low Doc Loans’ and how and why they may be offered to
clients. Refer to Topic 1-2, Topic 1-3 and Topic 3-3 for more information.
Task 13 — John’s professional network
1. Name three (3) parties John may wish you to keep informed of the progress of his finance application.
2. Briefly outline to John the process that will occur from your meeting onwards.
3. Although some of these stages do not involve the mortgage broker, briefly explain why it is important to
keep abreast of developments.
Tips
1. Here you are asked to consider other relevant parties that may be involved in assisting John in
either his business or this property purchase. Refer to Topic 3-4.
2. and 3. In your own words outline the process that will be followed leading up to approval and settlement
of the property purchase and others, besides you that might be involved. Refer to Topic 3-1, 3-3
and 3-4.
Task 14 — Impact of credit history
John tells you that his former wife failed to properly meet their unsecured personal loan debt obligations
before they separated. Although John eventually repaid the debt he is afraid that this incident may count
against him when he applies for a loan.
What would you advise John about:
1. Name two of the major credit reporting agencies and advise what information these files contain?
2. What procedure is involved and the associated costs to obtain a copy of your own file from each of
these agencies on both an urgent and a non urgent basis and can a free copy be obtained?
3. If there are errors on the file what is the procedure for John to follow in order to have these
errors rectified?
4. What are the Lender’s legal obligations if they decline an application due to the content of the credit
agency file (200 words total).
Page 11 of 11
Tips
1. Provide details of the information that Credit Agencies keep and list two agency names.
Topic 3-1, and the website <http://www.mycreditfile.com.au> will assist in answering questions in this Task.
2. Research individual Credit Agency websites to ascertain the procedure and costs.
3. Explain John’s rights including the process to follow if his former wife disagrees with any information in
her credit report. Refer to Section reference above and Credit Agency websites.
4. Provide detail on the impacts of a poor credit history and explain the process adopted by a lender if a
loan is declined because of poor credit history.
Task 15 — External dispute resolution
During the course of the loan process, John is starting to become upset with the time it’s taking to get him
an approval. Although you’ve explained that this is because of delays with the lenders processing system
due to staff being away, you’re concerned the matter may escalate beyond your control.
If COSL was your EDR provider, explain their role in the process.
Tips
Using your own words explain the process EDR process using COSL as the provider.
Refer to Topic 2-2, Part 5.
Task 16 — Effective access to files
The loan application is finally approved. Loan offers have been produced by the lender, as have numerous
documents that the client needs to access and review.
John’s away at the moment, and his email provider has a size limit on the data that can be sent via email.
What is a potential solution for John, and name a provider that could assist?
Tips
Refer to Topic 2-3.
代写 Finance and Mortgage Broking (CIVMBv1) assignment
