Certificate IV in Finance and Mortgage Broking Assessment Task - Desklib

Certificate IV in Finance and Mortgage Broking
Assessment Task
FNS40815
Your details:
Name:
Address:
Phone:
Company name
Email:
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 [e-mail]
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 Target
Mark
Pass
Mark
Actual
Mark
1 Identify and Interpret Compliance Requirements 27 18
2 Deliver and Monitor a Service to Customers 39 27
3 Contribute to OHS Hazard Identification & Risk Assessment 41 28
4 Manage Personal Work Priorities and Professional Development 24 16
5 Develop and Nurture Relationships with Clients, Other
Professionals and Third Party Referrers
17 11
6 Promoting the Effective Use of Credit 15 10
7 Prepare a Loan Application on Behalf of Mortgage Broking
Clients
64 44
8 Steps Taken by the Credit Provider 23 16
Total 250 170
Assessor’s Initials: ____________________
Assessment Date: ____________________
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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.
2. Type your answers to the assessment tasks into this template document
(hand-written answers are not accepted)
3. 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
[e-mail]
Statement of
Completion
Upon successful completion of this assessment you will be awarded the
Statement of Completion for FNS40811 Certificate 4 in Finance and Mortgage
Broking.
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Task 6: Promoting the Effective Use of Credit
Read the following scenario then answer the questions that follow.
Roslyn qualified as a schoolteacher some years ago, but failed to take up a teaching position
after graduating because she became a single mother. Fortunately, she has been able to live with
her widowed mother, but now that her daughter has reached school she is taking up a position as
a schoolteacher some suburbs away.
Because of the distance of her new school from her parent’s home she will need to buy a car.
After careful consideration, she has chosen a small hatchback that has an on-road cost of
$15,800.
She will be working full time with a starting salary of $50,000.
She knows little about finance and has come to you for advice. She would prefer to finance the
full cost of the car because she has little in savings.
Task 6.1.
(i) Suggest two financing options that Roslyn might consider.
(ii) Explain the main features of each.
(iii)Choose one of these options and explain your choice. Are there any disadvantages that need
to be considered?
No. Mark
1. The two financing options suggested for Roslyn has been considered with taking a
car loan and dealer finance.
/1
2. Some of the main features of the car finance is understood with variable interest
rate, fixed interest rate, comparison rate, extra repayments, redraw facility,
frequency of payment frequency and loan term. In dealer finance the term varies
from three to four-year terms. Dealer finance allows for balloon payment which is
payable end of the term. It offers lower interest rates than car loans, however the
low interest may be applicable to only specific models and makes of car.
/2
3. As Roslyn has newly started with her job, the dealer finance usually needs good
credit for eligibility. Therefore, car loan is recommended as the main financing
option. This will provide a range of competitive loan options and allow for the
repayments to be repaid in full amount at the end of LT (Loan Term). However,
Roslyn needs to be particularly aware of the higher interest rates than the dealer
finance and she may need to pay upfront and ongoing fees during the entire loan
period.
/2
Sub-total /5
Continued
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Task 6: Promoting the Effective Use of Credit Continued
Task 6.2.
Write a letter to Roslyn letting her know about your preferred, explain how she will make
payments and giving your reasons for choosing it as the option more clearly meeting her needs.
You should take care to proofread your letter.
Mark
Dear M/s. Roslyn,
This is to inform you that based on your decision to buy a small hatchback
I would suggest you that you choose the option of taking a car loan. Firstly, with a
starting salary of $50,000 you will have several repayment options based on the rate of
interest for the loan amount $ 15,800. Secondly, there is no need for balloon payment.
The secured car loan needs to be paid with a monthly repayment of $ 317.78 at 6.99%
fixed interest rate over a term of 5 years. This is inclusive of the total interest charge of $
2,967 and loan establishment fees of $ 350. In this way you will need to pay a total loan
amount of $ 18,767 over a period of 5 years. In compare to the dealer finance this option
will save you $ 3,160 of balloon value charged at 20% rate of interest. Moreover, being
new employed in the job there is less scope attaining the eligibility of dealer finance.
Henceforth, this car loan option will be the suitable technique to efficiently use the credit
amount.
Yours sincerely,
/4
Task 6.3.
Roslyn is concerned that the lender will apply for a credit report. Explain:
(i) The procedure and cost involved in obtaining a copy of her credit file.
(ii) The right of a lender to access credit report information.
No. Mark
1. The main information which needs to be maintained for obtaining a copy of credit
file includes “Income – gross (before tax) and net salary (after tax), employment
details and other income (from shares, rental property”. In addition to this, Roslyn
should have the on-hand information of the approximate “values of property,
vehicles, savings and superannuation”. Some of the other information needed is
seen with “loan balances, repayment amounts, credit card or overdraft limits”. She
needs to pay loan establishment fees of $ 350 for obtaining a copy of credit file.
/2
2. “Credit reporting body (CRB)” is seen as the only authority to give consumer the
right to take part in the “consumer credit reporting system”, along with a limited
people and organizations. The organizations such as Trade insurers, credit
providers and mortgage insurers have the right to access the credit report
information.
/2
Task 6.4.
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