Complex Lending and Broking - DIPMB2_AS_v3

This document is the written assessment for the Complex Lending and Broking (DIPMB2_AS_v3) subject. It includes instructions for completing and submitting the assessment, case studies, and tasks to be completed. The assessment covers topics such as identifying clients' complex broking needs, developing broking options, implementing loan structures, and improving practice performance.

Written
DIPMB2_AS_v3

Complex Lending and Broking
(DIPMB2_AS_v3)
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Student identification(student to complete)
Please complete the fields shaded grey.
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Written Assessment result (assessor to complete)
Result — first submission Not yet demonstrated
Parts that must be resubmitted
1,2,3,4
Result — resubmission (if applicable) 2,3 Not yet demonstrated
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Result summary(assessor to complete)
First submission Resubmission (if required) Resubmission (if required)
Task 1 Not yet demonstrated Demonstrated Not applicable
Task 2 Not yet demonstrated Not yet demonstrated Not applicable
Task 3 Not yet demonstrated Not yet demonstrated Not applicable
Task 4 Not yet demonstrated Demonstrated Not applicable
Task 5 Demonstrated Demonstrated Not applicable
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Feedback(assessor to complete)
To finalise this assessment you need to revisit the above tasks and resubmit for further assessment.
Assessment should be in your own words , so should not need references
Please use a different colour for your additional work and leave the assessor comments and gradings intact
Comments on resubmission.
Need to follow assessor comments exactly and very closely and then submit again for assessment. Please ensure every aspect
requested is addressed
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Before you begin
Read everything in this document before you start your written assessment for the Complex
Lending and Broking (DIPMB2_AS_v3) subject.
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About this document
This document is the written assessment and includes the following:
• Instructions for completing and submitting this writtenassessment
• Section 1: Case Study A – Ray Murdoch and Steve Brown – Commercial Equipment Finance
– Task 1a –Identify the clients’ complex broking needs
– Task 2a – Develop complex broking options
– Task 3a – Implement complex loan structures
– Task 4a- Detailing analysis findings
• Section 2: Case Study B – Bill Smith and John Jones – Commercial Premises Finance
– Task 1b – Identify the clients’ complex broking needs
– Task 2b – Prepare complex broking options
– Task 3b – Implement complex loan structures
– Task 4b–Detailing analysis findings
• Section 3: Improving practice performance
– Task 5–Develop, research and monitor plans to improve performance
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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 assessment within your enrolment period. Your study plan is in the
KapLearnComplex Lending and Broking (DIPMB2v3) subject room.
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Instructions for completing and submitting this written
assessment
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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 this written assessment.
• Name your file as follows:
Studentnumber_SubjectCode_Assessment_versionnumber_Submissionnumber
(e.g. 12345678_DIPMB2_AS_v3_Submission1).
• Include your student ID on the first page of the writtenassessment.
Before you submit your work, please do a spell check and proofread your work to ensure that
everything is clear and unambiguous.
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The written assessment
The information and data you need to complete this written assessment is presented in the case
studies at the beginning of each task.
This written assessment covers complex lending and broking and requires you to answer the
questions for Section one (1)or Section two (2)and Section 3. Each case study focuses on a
different lending scenario.
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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.
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Additional research
When completing this assessment, assumptions are permitted although they must not be in
conflict with the information provided in the Case Studies.
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.
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Submitting the written assessment
Only Microsoft Office compatible written assessments submitted in the template file will be
accepted for marking by Kaplan Professional Education. You need to save and submit this entire
document.
Do not remove any sections of the document.
Do not save your completed written assessment as a PDF.
The written assessment must be completed before submitting it to Kaplan Professional Education.
Incomplete written assessments will be returned to you unmarked.
The maximum file size is 20MB for the written assessment. Once you submit your written
assessment for marking you will be unable to make any further changes to it.
You are able to submit your written assessment earlier than the deadline if you are confident you
have completed all parts and have prepared a quality submission.
Please refer to the Assessment submission/resubmission instructions (pdf) in the Assessment
section of KapLearn for details on how to submit your written assessment.
Your written assessmentmust be submitted on or before your due date. Please check KapLearn
for the due date.
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The written assessment marking process
You have 12 weeks from the date of your enrolment in this subject to submit your
completed assessment.
If you reach the end of your initial enrolment period and have been deemed Not Yet Competent in
one or more assessment items, then an additional 4 weeks will be granted, provided you
attempted all assessment tasks during the initial enrolment period.
Your assessor will mark your written assessment and return it to you in the Complex Lending and
Broking
(DIPMB2v3)subject room in KapLearn under the ‘Assessment’ tab.
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Make a reasonable attempt
You must demonstrate that you have made a reasonable attempt to answer all of the questions in
your written assessment. Failure to do so will mean that your assessment 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 assessment.
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How your written assessment is graded
Assessment tasks 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 competent or not
yet competent.
Your assessor will follow the below process when marking your written assessment:
• 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 competent in all assessment items in order to be awarded your
qualification, including demonstrating competency in:
• all of the exam questions
• the written assessment.
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‘Not yet demonstrated’ and resubmissions
Should sections of your assessment 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 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 assessment, so your second assessor can see the
instructions that were originally provided for you. Do not change any comments made by a
Kaplan assessor.
Units of competency
This written assessment is your opportunity to demonstrate your competency against these units:
Unit code Unit name DIPMB2 Complex
Lending and Broking
DIPMB3 Business
Management Skills
FNSFMB502 Identify and develop broking options for clients with
complex needs Started Completed
FNSFMB503 Present broking options to clients with complex needs Started Completed
FNSFMB504 Implement complex loan structures Started Completed
FNSCUS501 Develop and nurture relationships with clients, other
professionals and third party referrers Started Completed
FNSPRM602 Improve the practice Started Completed
Note that the written assessment is required to meet the requirements of the units of
competency.
We are here to help
If you have any questions about this written assessment 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.
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Section 1: Case study A — Ray Murdoch and Steve Brown –
Commercial Equipment Finance
Note: You only need to complete Section 1 or Section 2 tasks 1-4 in this assessment, plus Section 3
task 5.
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Background
You have just met with Ray Murdoch and Steve Brown, referred to you by another commercial
client.
Ray Murdoch and Steve Brown jointly own a successful and growing business that manufactures
metal pallets. They trade under the name Pallets-R-Us Pty Ltd. The pallets are manufactured using
material that is lightweight and durable. There has also been a very structured approach to the
research and development for the engineering and design of the pallets. The pallets are used in all
industry sectors. Part of the process involves powder coating the finished product, which is
currently outsourced to a local well-established contractor.
It is critical that Ray and Steve’s product meets market needs. They need to maintain sustainable
production and operating costs if they are to forecast their sales and cost of sales.
They have a well-established client database that provides them with repeat ‘business-to-
business’ dealings. Whilethey have only been trading for 30 months, they have a solid business
plan with written supply contracts with three major business clients and several smaller business
clients.
Ray and Steve now require finance to assist them with the purchase of a sophisticated machine
that uses the technical platform system CNC. This machine can be programmed to rapidly
fabricate multiple components. The machine has an expected commercial lifespan of at least 15
years with operating software to be updated every three years. This software and upgrades is
included in the purchase price of $800,000.They will haveto import the machine from the US.
Initial enquiries with the US supplier have indicated that they will require a letter of credit for the
import of the machine. Once the machine has arrived and installed on the premises the letter of
credit will be replaced with an asset lease. The asset lease requested by the borrowers will be for a
seven-year term with a residual of 15%.
Their business employs five people and, with the expected increase in business through the
automation of production, they have forecast that they will need to recruit an additional two staff
members in the next 3–6 months to meet sales/production demands.
Ray has been in the metal fabrication field all his working life. He has an MBA and understands
financial management. He also has solid engineering skills and developed the majority of the
design works for the business. He is divorced and has no dependants. Steve is married and his wife
is a school teacher and she will be retiring at the end of the year.
Steve worked with Ray at ‘Protech’ as a foreman. His skills are in production and managing
project/job flow. He has high level technical skills and can complete works to specification at a
high standard.
Steve and Ray have provided the last two years financial accounts for the trading business, as well
as interim accounts for the current financial year. Ray’s brother provided business with a loan
$500,000 when the business commenced and he is being repaid interest plus a principle
repayment of $30,000 per annum.
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Applicant information
Client Ray Murdoch Steve Brown
Current address: Unit 43, 25 High St Northville, <Your State>and
has lived there for six years
23 Desmond Lane Northville, <Your State> and has lived
there with Kate for seven years. They own property jointly.
Home phone: [phone] 1212
Status Ray is divorced with no dependent age children Steve is married with no dependents
Employment Self-employed business owner Self-employed business owner
Income $100,000 per annum $100,000
Property value $750,000 $900,000
Cash at bank $12,500 $9,600
Contents $100,000 $85,000
Superannuation $250,000 Steve $350,000, Kate $60,000
Motor vehicle $40,000 $55,000
Home loan $250,000 repayments $2,068p.m.,P & I, 18 years
remaining
$350,000 repayments $2,645 p.m.,P & I, 22 years remaining
Credit card $25,000 limit with debt of $15,000, monthly
payment calculated @3% of limit
$10,000 limit with debt of $3,000, monthly payment
calculated @3% of limit
Car loan $0 $15,000 repayment $746p.m., remaining term 4 years
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The business
Year 1 net profit after tax $200,000
Year 2 net profit after tax $220,000
Current year interim profit (10 months trading) $200,000
Wages to partner 1 – years 1 and 2 $100,000
Wages to partner 2 – years 1 and 2 $100,000
Principal repayment to Ray’s brother repaid annually $30,000
ABN: 64-123-123-123
Business name: Pallets-R-Us
Pty Ltd
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Key balance sheet items
Cash $25,000
Trade Debtors $220,000
Trade Creditors $100,000
Notes The business currently meets all creditor payments at 30-day terms.
Debtor collection has been solid. They invoice an upfront payment of 50% of the sale price, which assists in
funding their production.
They have orders of $1m over the next 3 months and have made an increase in their gross profit margin.
The orders are from several clients, so their debtors will be well spread.
Outstanding balance on loan from brother $440,000.
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Task 1a — Identify the clients’ complex broking needs
Prepare a list of questions that you would need to ask Ray and Steve about their history,
experience, business performance and the intended equipment purchase.
In preparing your list of questions you should ensure that you cover the following:
• the complex features inimporting and purchasing this equipment and benefits that will come to
the Company from such purchase
• the identification of potential risks in such a transaction and Ray’s and Steve’s tolerance of risk
• the financial aspects of the transaction and current financial position of the business.
(800 words)
Student response to Task 1a
Answer here
Assessor feedback for Task 1a — Identify the clients’ complex broking needs
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
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Task 2a —Develop complex broking options
You are required to prepare a full report addressed to Ray and Steve outlining available loan
options;the process and the risks (potential and real) of which they should be made aware.
In a suitable reportformat you should cover the following:
1. the parties to the loan
2. Outline the type of letter of credit (LC) likely to be used, the parties to the LC and the high-
level steps involved in setting up and establishing LCto enable import of the equipment
3. the product options that are available to finance an equipment purchase once it has arrived in
Australia
4. your recommendation of best product option, including amount, security/collateral, term,
potential interest rate and residual value (if any)
5. name three (3) lenders that would consider and potentially approve this transactionand
advise Ray and Steve about product type, loan term, interest rate, balloon payment (if
applicable) and monthly repayment they offer
6. the procedure to commence theimport of the equipment and the loan, including
documentation Ray and Steve need to provide
7. the client responsibilities, so Steve and Ray fully understand the facility being proposed
8. outline the risks (potential and real) of which Ray and Steve should be made aware
9. whether personal guarantee will be required from the Director’sspouse
10. a summary of all fees and charges — including those for setup and those of the lender
11. advise which relevant disclosures need to be made
12. a request for client to inform you of any questions about the transaction and/or provide an
instruction to proceed.
(800 words)
Notes:Any assumptions you make should be listed, and not be in conflict with the case study
information already provided.
You are to write a report to your clients,demonstrating your professional writing skill —not simply
commenting on each of the points detailed above.
The use of tables in the report to set out some of the numeric information may be of benefit.
Student response to Task 2a
Answer here
Assessor feedback for Task 2a — Develop complex broking options
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
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Task 3a — Implement complex loan structures
Ray and Steve have accepted your recommendations and have given you authority to proceed
with their application.
As part of implementing their loan application you are required to prepare a formal written loan
submission to the lender for pre-approval. Note: Lenders have different credit policies and
submission requirements do vary from lender to lender.
Your loan submission must include the following:
• details of borrower, guarantors and all contact details
• borrowers background
• an overview of the proposal — what the finance is for
• the proposed structure of the facility being recommended — product type, deposit amount (if
required), loan amount, term, interest rate and residual value (if any)
• full details of the security/collateral that is to be provided
• serviceability calculations including Debt Service Cover Ratio (DSCR) calculations, including all
personal borrowing facilities of the directors
• provide a ‘funds-to-complete’ table including statutory costs and any relevant fees
• highlight the relevant risks — industry, business, transactional — and how they are mitigated
• any other information that is relevant to assist the lender provide an approval
• your comments and recommendations
• list attachments
(800 words)
Notes:Any assumptions you make should be listed, and not be in conflict with the case study
information already provided.
You are to write a formal submission to the lender; not simply commenting on each of the points
detailed above.
The use of tables in the report, to set out some of the numeric information, may be of benefit.
Student response to Task 3a
Answer here
Assessor feedback for Task 3a — Implement complex loan structures:
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
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Task 4a—Detailing analysis findings
This task will require you to assume the role of a credit assessor who is making a recommendation
to their supervisor for approval of the loan application being assessed.
This will require you to provide a detailed analysis of your research into the applicant and their
industry (based on case study background), your findings and risk analysis for the lender.
Verification of the applicant’s information and supporting documents includes testing and checking the
integrity of information supplied.
1. Using the the information in the case study, checkthe legal entity of the business and identify
which Australian Business Number (ABN) is correct:
(a) 64-123-241-193
(b) 64-123-123-123
(c) 64-123-123-163
Student response to Task 4a: Question 1
Answer here
2. Identify two legislative requirementsthat should be reviewed totest and check compliance with
identification processes for commercial borrowers.
Student response to Task 4a: Question 2
Answer here
3. What sources could you rely on to verify the financial data supplied by the client?
Note: As this is a case study only, you will need to explain where you would source the
information, what processes you use and what documents would verify the financial data.
Student response to Task 4a: Question 3
Answer here
After reviewingthe background informationand business details of the applicant, complete the following
questions.
4. Provide a summary of the impact that thenew leasing costs will have on the applicant’snet
profit, assuming an anticipated 50% increase in the net profit based on the Year 2 of trading
results.
Student response to Task 4a: Question 4
Answer here
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5. Provide a costing of the lease as described in the background information.The interest rate for
the lease will be 6%.
Student response to Task 4a: Question 5
Answer here
6. Detail the security instrument to be used for this transaction and what impact this may have on
the business.
Student response to Task 4a: Question 6
Answer here
7. Outline any legal or other complex requirements identified.
Student response to Task 4a: Question 7
Answer here
(Task 4b questions 1-7, 500 words)
Notes: To complete this task you will need to refer to the Toolbox in the sections Pallets-R-Us
PtyLtd and‘Lending organisation’s guidelines, policies and procedures, Legislative requirements,
Loan verification and loan standards’ found in theToolbox.You may also need to conduct your
own independent research to answer these questions.
Assessor feedback for Task 4a — Detailing Analysis Findings:
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
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Section 2: Case Study B — Bill Smith and John Jones –
Commercial Premises Finance
Note: You only need to complete Section 1 or Section 2 tasks 1-4 in this assessment, plus Section 3
task 5.
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Background
You are meeting with prospective clients, Bill Smith and John Jones. They have been referred to
you by their accounting firm, Buckland Accountants.
The prospective clients need assistance with the acquisition of owner-occupied premises to
replace their current business premises, which they rent and is becoming too small for their
growing business.
True Blue Pty Ltd trades as True Blue Real Estate and was purchased as an existing real estate
business three years ago. Bill Smith and John Jones are the directors.
The shareholders of True Blue Pty Ltd are Bill Smith, John Jones and a private investor, Amanda
Williams, who does not work in the business and has no involvement in its day-to-day operation.
Each holds an equal one-third share in the company.
Bill and John have each been in real estate for approximately 15 years, focusing on residential
sales and leasing. They have gained their work experience in the local area. A wealth of knowledge
of the area, coupled with an ever-expanding client base, has resulted in sustained and solid growth
for the business.
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Details of the property
Sale price of the property is $950,000. (There is no GST requirement as it is being purchased as a going
concern.)
A deposit of $95,000 has been paid and is being held in the trust account of the settlement
agent/solicitor.
A cash contribution of $233,240 will be made from the general working account of the business.
Property purchase and loan to be in the name of a new entity — True Blue Pty Ltd as trustees for
the Smith Jones Unit Trust. There are a total of 99 units in the trust and the unit holdings mirror
the shareholding of the trading entity, True Blue Pty Ltd.
The property is situated at 100 Smith St, Yourtown, with contracts exchanged at today’s date and
an anticipated settlement date of 90 days.
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General observations about the property
The property is in good condition and is well located in the same street as the current rental
premises.
It is anticipated that the premises will meet the needs of the business for the next 10 years.
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Summary of initial client fact find
Bill and John have provided the last two years financial accounts for the trading business, as well
as interim accounts for 10 months of the current financial year.
True Blue Real Estate’s financial accounts
Year 1(previous) Year 2 (current)
Net profit after tax $92,000 $140,060
Current year projected- $175,000
Add back (rent) $47,000 $49,142
Additional superannuation to director $31,400 $34,539
Wages to partner one $70,640 $70,640
Wages to partner two $70,640 $70,640
Payment to private investor (fixed flat profit fee) $45,000 $45,000
Applicant information — Bill Smith
Personal details
Address 26 Nowry Road, Yourtown, 1234
Date of birth 17 February 1958
Phone [phone]
Financial details
Gross income $70,640
Owner-occupied property valued at $550,000
Outstanding debt on owner-occupied property $210,000 repayable at $1,379per month P & I,
6.2%p.a.interest rate
Credit card with limit $15,000 Outstanding debt — $5,000
Superannuation $250,000
Motor vehicle valued at $30,000 (nil debt)
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Applicant information — John Jones
Personal details
Address 14 Mary Street, Yourtown, 1234
Date of birth 14 October 1970
Phone [phone]
Financial details
Gross income $70,640
Owner-occupied property valued at $750,000
Outstanding debt on owner-occupied property $300,000 repayable $2,159 per month P & I, 6.2%
p.a.interest rate
Credit card with limit $5,000 Outstanding debt — $1,000 cleared monthly
Superannuation $200,000
Motor vehicle valued at $45,000
Outstanding debt on motor vehicle $15,000 repayable $623per month,fixed interest rate
Additional Business details
Cash in business account $400,000
ABN 64 123 123 123
Business Name True Blue Pty Ltd trading as True Blue Real Estate
Trust Smith Jones Unit Trust
Other information
Applicants’ solicitor Moffat and Co (contact is Maree Moffat)
16 Tatlor Street, Yourtown, 1234
Phone [phone]
Applicants’ accountant and registered office Buckland Accountants (contact is Simon Williams)
28 Mary Street, Yourtown, 1234
Phone [phone]
Applicants’ banker Westcoal Building Society, Yourtown, 1234
Notes:
• Assumefor credit card debts, the minimum monthly commitment should be calculated at 3% of
the credit limit.
• Each of the working directors has appropriate death, income and disability insurance in place.
• A sensitisation factor of 2% should be used when calculating financial commitments.
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Task 1b — Identify the clients’ complex broking needs
Prepare a list of questions that you would need to ask Bill and John about their history,
experience, business performance and the property purchase.
In preparing your list of questions you should ensure that you cover the following:
• the complex features of Company and Trust structure and benefits that will come to the
Company from purchase of this property
• the identification of potential risks in such a transaction and Bill’s and John’s tolerance of risk
• the financial aspects of the transaction and current financial position of the business.
In addition to the list of questions, please also comment on any potential risks you identify (you
are permitted to make assumptions here). In considering these risks you should consider:
– how you would identify the risks and the criteria you used to evaluate these risks
– how you would assess their current debt exposure; the tools you would use in terms of risk
probability, impact and consequences.
(800 words)
Student response to Task 1b
Before selling up of the property it is very essential that there is a proper list being made of the
questions which are to be asked to bill and thrown relating to the history experience business
performance and the property purchased. The reason underlying this fact is that when true blue real
estate will be knowing the requirement of Bill and John then they will have to ask certain questions
relating to the background. The major question been asked to bill and John is that how much
experience they are having within the field of property purchase. This is pertaining to the fact that
with help of the experience the person can evaluate the factor that how effectively bill and John are
having knowledge relating to how to purchase properties (Paterson and Bant, 2020).
In addition to this another major question to be asked to bill and John is that before
purchasing the property what are the factors which they both evaluate. This is necessary in order to
analyse the critical thinking skills of both as this will assist in managing the fact that whether they
will be in position to pay off all the money or not. In addition to this fact it will also assisted True
Blue Real Estate Company in analysing the fact that whether both of them are having proper and
necessary information for the purchase of property or not. In addition to this it will also clear the
fact that both the bill and John are having the knowledge of purchasing the property in effective and
efficient manner. This will assist True Blue Real Estate Company in analysing the fact that both of
them are having knowledge and they must communicate in the manner in which the communication
must be taken place with the knowledgeable person (Meredith and Darroch, 2018).
While preparing the list of question the most essential aspect to be analysed and evaluated is
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the features of the company and the trust structure which day company from the purchase of this
property will make. The reason underlying this fact is that in case of the purchase of property the
major aspect will be that this will increase the profitability of the the Bill and John. The reason
underlying this fact is that when the true blue real estate companies having the proper knowledge
that how Bill and John will be using that property then they can search the money to them in that
manner only (Freebairn, 2018). In case the property is of urgency to both of them then the true blue
real estate company can charger little higher prices and they will be willing to pay that high price
also. Thus this will increase the profitability for True Blue Real Estate Company.
Along with this it is also very essential for True Blue Real Estate Company that they must
identify all the potential risk in the transaction of bill and John. The reason underlying this fact is
that when the company will be having knowledge that what will be the potential risk which can
effective working of the transaction then they can try to to minimise those risk and this will not
affect the business transaction and all. Thus the major potential risk under the transaction of bill and
John was that both of them having team outstanding debt on the owner occupied property. This
simply means that both of them have taken loan over the properties owned by them. This in turn
reflects the fact that both of them having the capacity to pay off the debt in in efficient and effective
manner. In addition to this it can also be stated that both bill and John are having the risk tolerance
capacity. The reason underlying this factors that both have taken loans over the property. Thus this
simply means that both of them have the capacity that they can provide the property on lease and
can take the loan against it. Thus it can be evaluated that both of will pay off all the dues relating to
the property they are purchasing.
with the valuation of the information provided it can be seen that the financial aspect of the
transaction and the financial position of the business is good. The reason underlying this factors that
the net profit of true blue real estate has also increased in comparison to the previous year. in the
previous year the net profit after tax was 92000 but in the year two it has increased to 140060. In
addition to this it was evaluated that for the effective working and operations of the company it is
very essential that it has good profitability. This is necessary because if the profitability of the
company will not be good than other companies and people coming to the place will not be trusting
the company. Hence in the case of True Blue Real Estate Company it was evaluated that the
financial position of the company is good and growing. Hence any person dealing with the true blue
real estate company will be trusting the company as the profitability is increasing on a continuous
basis (Hanrahan, 2018).
in addition to this it is also very important for the other party to have a good and secure
financial position. The reason underlying this fact is that if the financial position of the buyer is not
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good then True Blue Real Estate Company will not be trusting the buyer and there might be
possibility that they will not sell the product. Hence it is also very essential that bill and John have a
financial stability and good financial position so that True Blue Real Estate Company can trust both
of them and sell the property to them. With the analysis of the information gathered in respect to
bill it was evaluated that the gross income of Bill was 70640. In addition to this for Jon it was
identified that the gross income is also same as a bill that is 70640. In addition to this the cash in the
business accounting was 4 lakh and the motor vehicle of John was valued at 45,000 and for bill it
was valued at 30000. The superannuation for John was 200000 and for will it was 250000. With is
data and information it is clearly visible that the financial position of both partners is good and True
Blue Real Estate Company can trust both of them and sell the property to them.
1. How much money do you need?
2. What does your credit profile look like?
3. How will you use the money?
4. How will you repay the loan?
5. Does your business have the ability to make the payments required under the loan?
6. Can you put up any collateral?
7. Risk tolerance
8. Approach to rate change
9. Preference on using cash or equity
10. Assets and disposable income
11. Finacial Literacy and awareness of economic market
12. Knowledge of fianciall products
13. Goals and objectives / needs – long term short term
14. Investment Strategy
15. Needs and objectives
Assessor feedback for Task 1b — Identify the clients’ complex broking needs:
Need a comprehensive list of questions you are going to ask the
borrower in order to be able to complete an application
Question(s) that need to be resubmitted (if required) 1
First submission Not yet demonstrated
Resubmission (if required) Demonstrated
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Task 2b— Prepare complex broking options
You are required to prepare a full report for Bill and John by outlining the process and the risks
(potential and real) of which Bill and John should be aware.
In a suitable format, outline to the directors the options available to them and the process that
will need to take place for them to complete the new property purchase and establish the loan.
In developing your report you should cover the following:
1. the parties to the loan
2. what is the best loan structurefor this transaction — provide Bill and John with options to
use their own residential properties as cross security or use a cash contribution and use the
property to be purchased as the security
3. your recommendation of the best option, including amount, security/collateral, term,
repayments and potential interest rate
4. name three (3) lenders that would consider and potentially approve this transaction, and
advise the client of the product type, loan term, interest rate, ongoing fees, balloon payment
(if applicable) and monthly repayment they offer
5. the procedure to commence the loan, including documentation Bill and John need to
provide
6. the client responsibilities, so Bill and John fully understand the facilitybeing proposed
7. outline the risks (potential and real) of which Bill and John should be made aware
8. the name in which the client will sign the contract to purchase and, given Trust involvement,
in what name will it be registered (this varies state to state so please advise which state you
are from)
9. a summary of fees and charges — including those for setup and those of the lender
10. a request for client to inform you of any questions about the transaction and/or provide an
instruction for you to proceed
11. advise which relevant disclosures need to be made
(800 words)
Notes:Any assumptions you make should be listed, and not be in conflict with the case study
information already provided.
You are to write a report to clients demonstrating your professional writing skill, not simply
commenting on each of the points detailed above.
The use of tables in the report, to set out some of the numeric information, may be of benefit.
Student response to Task 2b
John Jones is looking for a loan. Borrowing and loan is the value or the amount that always
approaches to meet up a certain financial need or requirements as an individual. John Jones is the
individual party will be responsible for the entire loan value.The parties to the loan will be Bill and
John. In against to the loan any relative or friends of the Bill and John needed to gurantee against the
loan applied by the parties. This is a basic rule of the loan and borrowing in that the individual that
approach the bank or the financial institutes for the borrowing or loan get to pay the entire due
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amount. In context to the loan and borrowing the person or the borrower is the sole entity that
becomes the responsible for the entire loan payment. Westcoal Building Society is the lender of the
entire loan amount and in against to giving or providing loan amount the bank can approach the
lender in case of any default arises in the loan repayment(González Canché, 2017). The security of
the property bank has demand against allocating loan value. In case of loan bank always address the
security as in case of any default arises in the loan value than bank can directly arrest the security of
the borrower that is has submitted to the bank. The concept of depositing security against the loan is
based on the idea that there are many possible circumstances could have been arises when the
borrower not get able to clear it’s due. In such a time this is essential for the bank to secure the debt
against the security deposited by the company of respective value. The another term or condition
related to loan or borrowing is such that bank can only arrest the security value till the actual loan
value not get recovered any finances received beyond that value would get paid again to the
borrower.
In case of loan repayment is done with support of equal monthly instalment for the respective
tenure. The value of equal monthly instalments could have been adjusted by the bank and customer
with mutual discussion over the table. The bank provides the facility to its customer or borrower of
the loan to provide feasibility in loan repayment. The tenure can be changes based on the
convenience of the borrower. In case the loan holder desire to repay the entire loan value early than
bank can increases its value of equal monthly instalment so that entire loan could have been
recovered at a early date. Bank always prefer the convenience of the customer or borrower when it
comes to loan repayment terms. There are two aspect that if the tenure of the loan remain less than
this create a financial loss for the bank in form of interest income (Collier, 2020). So the banking
institutions try to keep a balance between the loan repayment terms and the convenience of
customers so that it can end up sustaining the customer base. The repayment schedule can be done in
the equal monthly instalment on the basis of the paying capacity of the borrower. John jones can use
the own residential security as a security against the borrowing. This would easily get convinced by
the banking authority as the credit team require evaluating that in against to the total loan value the
security must hold a certain value that can easily cover up the entire loan value. The residual
property always contains a value that is sufficient enough to cope up with the total loan amount. In
case the property contain a sufficient value than such residential property could be stake as a security
against the loan taken.
The security can be the residential property, repayment term should be evaluated on the basis
of the income of the borrower, total loan amount and the interest rate against the loan is taken. In
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case of loan the convenience of the borrower become a priority so it solely influenced with the needs
and requirements of the loan holder. Also the potential interest rate should be based over the market
rate. In case of loan borrowing practices borrower always prefer the borrowing option that can
provide the maximum loan value as per the needs and requirements of the borrower over an interest
rate that can suit or match up with the convenience of the borrower (Parmeter and Sarangi, 2020). If
the bank will charge an interest rate more than the charged by other lenders than borrower will not
go further taking such a loan. So it must be convenient for the borrower.
In case of loan practices lenders such as bank, private financers and other lending institutions
are approaches to undertake all loan related requirements. In against to the loan application the
procedure that most of the lender follows is that at first the loan application is signed in between the
bank and the potential customer. The application contain different requirements related to the
documentation, fees charge over application, submission of all document, verification of documents,
credit verification, evaluation of property, approval of loan and disbursement process in the end. All
these are the different stages or part of the loan process (Ssekiziyivu And et.al., 2018). This is the
responsibility of the client to take authenticity and accountability of all the document submitted. The
risk is always a part of the loan. The risk is related to loan not getting approved due to civil score or
credit score or any other reason. The loan is processed once the verification and documentation are
completed.
Letter:
This is to inform the client that the entire processing of the loan is done. The application form
has been submitted and assured. This is to inform the cliet that the details of the application form has
been proceeded further. You loan application would soon be reached to its final mark.
Thank you.
Assessor feedback for Task 2b — Prepare complex broking options
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This is meant to be a written report addressed to your clients
and signed by yourself providing sufficient information to enable
the Borrower to make an informed decision to award you the
mandate to arrange finance on their behalf and this would have
no references as it must have the personal touch
You need to address all requested points in the task including
1. parties to the loan & which shareholders will need to
guarantee
2. advantages and disadvantages of both
options to use their own residential
properties as cross security or use a cash
contribution and use the property to be
purchased as the security
3. your recommendation of the best option,
including amount, security/collateral,
term, repayments and potential interest
rate
4. name three (3) lenders that would
consider and potentially approve this
transaction, and advise the client of the
product type, loan term, interest rate,
ongoing fees, balloon payment (if
applicable) and monthly repayment they
offer
5. the procedure to commence the loan,
including documentation Bill and John
need to provide
6. the name in which the client will sign the
contract to purchase and, given Trust
involvement, in what name will it be
registered (this varies state to state so
please advise which state you are from)
Comments on resubmission:
The borrower is not the directors , you need to
address evry point requested above. This
should be a letter written to your customer
and signed by yourself. No letter contains
references to academic research.
I would suggest start again on this report to your
client
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
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Resubmission (if required) Not yet demonstrated
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Task 3b — Implement complex loan structures
Bill and John have accepted your recommendations and have given you authority to proceed with
their application.
As part of implementing their loan application you are required to prepare a formal written loan
submission to the lender for pre-approval.
Note: Lenders have different credit policies and submission requirements do vary from lender to
lender.
Your loan submission must include the following:
• details of borrower, guarantors and their contact details
• borrowers’ backgrounds
• an overview of the proposal — what the finance is for:
– the proposed structure of the facility being recommended — product type, deposit amount
(if required), loan amount, term, interest rate and residual value (if any) Note: Loan is based
on a 70% LVR, a 7% interest rate and 15 year term.
– full details of the security/collateral that is to be provided
– Sensitised serviceability calculations including Debt Service Cover Ratio (DSCR) calculation
and all personal borrowing facilities of directors (sensitisation rate is disclosed in case
background)
– provide a funds-to-complete table, including statutory costs and any relevant fees
– highlight the relevant risks, industry, business, transactional and how they are mitigated
– any other information that is relevant to assist the lender provide an approval
– your comments and recommendations
– list attachments.
(800 words)
Notes:Any assumptions you make should be listed, and not be in conflict with the case study
information already provided.
You are to write a formal submission to the lender, not simply commenting on each of the points
detailed above.
The use of tables in the report, to set out some of the numeric information, may be of benefit.
Student response to Task 3b
Borrowing Entity: Bill and John
ABN & A.C.N
Address
Phone, Fax, email
Shareholders including address, date of birth, licence number, phone , mobile, email
Stakeholder: John and jones and Bill Smith
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John and Jones
Address: 14 Mary Street, Yourtown, 1234
Date of birth: 14 October 1970
Phone: [phone]
Mobile: [phone]
E-mail: [e-mail]
Bill Smith
Address: 26 Nowry Road, Yourtown, 1234
Date of birth: 17 February 1958
Phone: [phone]
E-mail: [e-mail]
Purpose of Loan
The purpoxse of the loan is to buy the new house.
Amount
716760
Funding Position
The Borrower hold some amount that they will deposit in cash and the rest of the company will
be arranged through the borrowign from bank.
Security( including guarantors)
Security will be deposited as 233240.
Detailed description of each property
The property that is aiming to buy will be a house property. The borrowers are aiming to buy
this property against the lona so that they can have the own property.
Loan Term and Repayment Structure
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Servicing Calculations including ratios
Risk analysis
The riks involve in the loan is associated with the default in making the emi done against the
loan. The risk is also associated with the risking the income. The risk is also such that market is
very fluctuating that do not ensure a proper security re;ated to income that will arise every month on
a regular basis.
Recommendation
It is recommended that the savings shoud be made in advance to repay the actual loan amount.
This is recommended that the respondents should contain a sufficient balance of savig so that all
repayment can be done in a sufficient manner.
Attachments
The borrower is the John and jones. The loan will be of 15 years term and contain an interest
rate of 7%. The repayment will be done with support of the equal monthly instalments that can
provide an ease to the borrower to ready the entire loan amount. In context to loan there are
different facilities that s available for the lender that include part payment facility and also the loan
sort off facility in which the borrower get the chance to completely settle down the entire loan
amount before the actual completion of loan tenure. This is key facility that is available for the
borrower in against to undertake the loan. In against to undertake the loan the security is deposited
that can support the borrower to take necessary steps to take the loan. This is a key practice
associated with the borrowing practices. All terms and condition is already submitted right before
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the borrower by the lender so that not any confusion arises with the loan submission. The lender in
the pre requisite already mentions all the details about the loan terms and condition. In case of loan
the condition over which the entire loan or the borrowing is based is very essential as it allow the
borrower and the lender understand the actual requirements of the loan.
The relationship manager already conveys all the requirements associated with the loan
disbursement. Also the equal monthly installed are deducted on an auto basis. This means that the
instalments will be ducted from the bank account of the borrower automatically. This improves the
convenience of the loan repayment especially in respect to the borrower of loan. There are many
risk associated with the loan such as the default in repayment of loan. This is one of the major risk
involve in the loan. For the borrower this is important to understand all the terms and conditions
associated with the loan. In context to the loan structure this is essential to structure the loan in the
best way possible. When the loan gets approved the borrower gets the professional message from
the bank and also the approval went over the personal mail id of the borrower. This allows the
borrower to get authorisation against the loan approval get by the bank. This makes the lender to
convey all the details that the loan has been approved and now the borrower can officially analysis
the condition behind the loan. Also the authorise mail is allocated to the borrower right after the
disbursement process is done. This involves sending the contract or agreement of the loan between
the bank and the borrower. This is also essential for the bank to submit the contract over email. This
makes it essential for the borrower or the lender to develop the professional practices against the
money received or lent. This make it more significant for the borrower and the lender to get deliver
all the instrument that borrower officially authorises to hold against the capital received from the
bank in form of loan.
Assessor feedback for Task 3b — Implement complex loan structures:
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A formal credit application uses the following sub headings in
this exact order and has no references
Borrowing Entity
ABN & A.C.N
Address
Phone, Fax, email
Shareholders including address, date of birth, licence number,
phone , mobile, email
Purpose of Loan
Amount
Funding Position
Security( including guarantors)
Detailed description of each property
Loan Term and Repayment Structure
Servicing Calculations including ratios
Risk analysis
Recommendation
Attachments
Comments on resubmission
The borrower is the company
Every sub heading needs to be completed
especially on the company and the directors to
enable company searches and credit bureau
checks to be undertaken
Purpose of loan, why are they buying the
property it is more than just purchasing a house
it is to save rent and it is to be an office
Funding Position, need to do a Funds to
Complete Statement as you did in DML 1,
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Security , what asset will secured the loan , it is
not the deposit
Description of property- lender will want to
know zoning, land size, description of
improvements, how far from shopping centre,
transport, what is the surrounding real estate
Lona term, how long is the loan for and how
much are the monthly repayments
Servicing calculations – prove to lender how
borrower can afford the repayments based off
the historical and projected earnings in the case
study which should be set out in a table format
to compare each year
Recommendation- do you recommend that the
loan is to be approved or declined and give
reasons why
A
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not yet demonstrated
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Task 4b — Detailing analysis findings
This task will require you to assume the role of a credit assessor who is making a recommendation
to their supervisor for approval of the loan application being assessed.
This will require you to provide a detailed analysis of your research into the applicant and their
industry (based on case study background), your findings and risk analysis for the lender.
Verification of the applicant’s information and supporting documents includes testing and
checking the integrity of information supplied.
1. Using the the information in the case study, check the legal entity of the business and identify
which Australian Business Number (ABN) is correct:
(a) 64-123-241-193
(b) 64-123-123-123
(c) 64-123-123-163
Student response to Task 4b: Question 1
64- 123- 123- 123
2. Identify two legislative requirements that should be reviewed to test and check compliance
with identification processes for commercial borrowers.
Student response to Task 4b: Question 2
for the effective identification of the commercial borrowers it is very essential to follow all the
legislative requirements. The reason underlying these factors that when the person complies with
all the legislative requirements then the working is more effective and efficient. there are many
different legislative requirements which needs to be followed at time of mortgage and loans.the
first and foremost legislative requirement is the compliance with NCCP (Jiang, 2020). NCCP stands
for National consumer credit protection act 2009. this act is applicable for personal domestic and
household purposes and to purchase renovatethe different properties residential of an investment
purpose. All the regulations under the NCCP must be complied by John and bill at time of
purchasing the property. In addition to this and other major legislative requirement is team
compliance with fair housing act. The fair housing act aims at providing the discrimination taken
place due to race colour National let your religion. This act ensures that there is no discrimination
at time of selling of purchasing the property due to all these factors.
ABN Search / Asic look up will be a good way to check the trading entity to see the strucutre
3. What sources could you rely on to verify the financial data supplied by the client?
Note: As this is a case study only, you will need to explain where you would source the
information, what processes you use to verify the financial data.
Student response to Task 4b: Question 3
All the financial statements and information has been supplied by John and bill relating to them.
But it is very essential for the seller to analyse and confirm the financial position of the company
true blue real estate. For confirming and authenticating the financial data supplied by the owner
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of the propertyfinancial statements of 2 years can be analysed. the reason underlying this fact is
that with help of the financial statement the owner of the house can authenticate the factor that
whether the financial information is presented by both is correct or not. In addition to this for
verifying the financial data auditing of the past financial records can be done. The reason
underlying this fact is that with help of auditing the owner of the house can assist the 5 that
whether the financial data provided by true blue real estate company and bill and John is correct
or not (Tsiaplias and Wang, 2020).
4. Following your review on the borrower’s cashflow, provide a summary in the table below,by
comparing current and future (projected) cashflow position after the new loan;and any
cashflowimpact it may havefor the applicant.
Student response to Task 4b: Question 4
Current financial year Current year projected
Current year net income after tax $140060 Projected net income after tax 175000
Rental add back $49142 Add back rent $49142
Less new loan 45097 Less new loan 45097
Net surplus cash flow 45821 Net surplus income 80761
Cashflowimpact:
With the above data it is clear
that in case of the current net
profit after tax the net cash
inflow was 45821. But if the
projected net income after tax
would have been achieved of
175000 then the net surplus
cash outflow will be only of
80761. Hence with this it is
clear that if the profit that is
the net income after tax would
be more then the net cash
outflow will be less. Hence the
impact over the cash flows will
be positive in case the net
income after tax will be more
and higher.
5. Detail the security instrument to be used for this transaction and what impact this may have on
the business.
Student response to Task 4b: Question 5
for the financial transaction to be safe and secure it is very essential to the loan provided to have
some security instrument. The security instrument are the belongings of the person which is kept
against the loan taken. Hence if the person is having some security instrument being placed with
the loan provider then there will be surety that the loan will be repaid on time. Hence these
security instrumental very essential for the the successful repayment of the loan. In the present
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case of bell and John the major security instrument can be the motor vehicle which is being owned
by John and also by Bill. this is pertaining to the fact that if the motor vehicle will be kept as the
security instrument to the loan provider then John and bill will repay the loan on time and have
the motor vehicle back. this will motivate both John and bill to pay the loan on time and there will
be security that the payment will be paid to the loan provider in full and effective manner. This
security instrument has a greater impact on the business. The reason underlying this fact is that
this gives the business transaction safe and secure and there is trust between both the parties.The
security agreement (GSA) is the document which provides the lender a security interest in a
specified asset or property which is pledged as a collateral. This security agreement is the name of
the legal document which is being signed to pledge security to the borrower.
6. Outline any legal or other complex requirements identified
Student response to Task 4b: Question 6
The major league lok complex requirement identified within the present transaction is that bill and
john must keep the rate of interest in mind. The reason underlying this fact is that against the loan
and interest is being charged by the loan provider and if the interest is not repaired on time then
they can keep the property with them. Hence the most essential aspect of the complex
requirement is to remember and timely paid the interest on the loan. in addition to this another
major legal or complex requirement is to keep a security against the loan been taken. The reason
underlying this factors that under the mortgage loan there is a requirement of keeping something
as mortgage against which the loan is been provided by the loan provider. hence these are the
major legal or complex requirement which bill and John can encounter at time of taking mortgage
based loan.
(Task 4b questions 1-6, 500 words)
Notes: To complete this task you will need to refer to theToolbox and sectionsTrue Blue Pty Ltd
trading as True Blue Real Estateand ‘Lending organisation’s guidelines, policies and
procedures,Legislative requirements, Loan verification and audit standards’document found in
theToolbox. You may also need to conduct your own independent research to answer these
questions.
Assessor feedback for Task 4b — Detailing Analysis Findings:
Q2 how do you identify a company
Q4 need to subtract annual loan repayments not the amount of
the loan to arrive at a surplus
Q5 What is the name of the legal document signed to pledge
security to the borrower
Question(s) that need to be resubmitted (if required) 2,4,5
First submission Not yet demonstrated
Resubmission (if required) Demonstrated
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Section 3: Improving practice performance
Note: You only need to complete Section 1 or Section 2 tasks 1-4 in this assessment, plus Section 3
task 5.
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Task 5 – Develop, research and monitor plans to improve
performance
As the owner of your mortgage brokerage practice, you have decided to undertake a review of the
business and its processes with the objective: to improve its overall performance for the practice.
1. To achieve this, you will initially need to conduct some research on the internet.Reference sites
are located in the Toolbox in the section:Improving practice performance. Once research is
completed, you are required to develop and document your plans to introduce the new
improvement into the practice. To do this, fill in the table below:
Student response to Task 5: Question 1
Goals Current position Improvements
To increase the profitability of
the business.s
The current position of the
company e is not that good.
The reason underlying this fact
is that the company is not able
to reach the projected net
income.
hence for this it is advisable to
the company that they must try
to increase the property bility of
the business. For this they can
try to improve the sales of the
company so that the profits will
increase.
Performance Current position Improvements
The overall financial
performance of the company is
good and they can get the loan.
with respect to the current
position of true blue real estate
company it can be seen that the
overall financial performance of
the company is good full stop
the profits has been increased in
comparison to the last year for
the current year. Even though
the company was not able to
attend the projected cash flow
but then also in comparison to
the last year the profits of the
company were good.
for the improvement it is
advisable to the company that
they must make the strategies in
order to attain the projected
outcomes only. The reason
underlying these factors that
have the projected outcome will
be attained then this will result
in higher profitability of the
company.
Using data Current position Improvements
There is high deviation between
the actual current year net
income after tax and the project
net income.
with respect to the current
position of the true blue real
estate company it was identified
that there was a deviation
between the current year
projected net profit and the
actual current net profit. the
actual current net profit was
140060 but in against of this the
With respect to the
improvement it is advisable to
true blue real estate company
that they must set the higher
standards than the actual
standard. The reason underlying
this fact is that when the
standards set higher than the
actual then at least the
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current year projected profit
after tax was 17 5000. hence
there is a deviation between the
actual and the projected
working and because of this
there is requirement of
improvement.
employees will try to perform
the highest standard and as a
result of this day will attain the
actual standard.
Document Current position Improvements
Financial statements and the
information provided by
company and the directors
information as well.
For taking the loan true blue
real estate company has
provided detailed financial
statements of the company and
the information related to the
directors that is Bill and John.
all this document contains
detailed information of both the
directors and the profitability of
the business is well for the past
two years.
for improving this company
must have provided the
information for past five years.
The reason underlying this fact
is that with the past five years
data the loan provider can
evaluate the actual performance
of the company.
2. While conducting this research you found that your credit representatives are failing to input all
the essential data and document requirements into the aggregator software platform following
a software upgrade. To avoid any potential breaches in compliance, provide an effective
method you may use to negotiate an acceptable timeframe with the credit representatives to
implement these new software processes.
Student response to Task 5: Question 2
In order to analyse and implement a new software process the first and foremost thing is to contact
and informed the aggregator that which item is missing from the latest software platform. This will
assist company in identifying the fact that whether there is any new version of the software or not
and if it is there then how the software can be upgraded. This is very essential for the success of the
software process implementation because of the reason that it is well improve the working capacity
of the the company. In addition to this if the new software process will be implemented then there
will be proper and essential data and documents being input and the accurate result will be formed
of. in addition to this the next step will be to request the aggregator and to inform them to change
the sitemap for the self troubleshoot. the reason underlying this fact is that with the self troubleshoot
the company will be able to implement the software by themselves by simply upgrading the
software. for the after that I'm to prevent any delay of the data input because of the technical issues
the issue can be discussed and requested to the aggregator with some alternative method. The
reason underlying this fact is that in case there is some issuethen some alternative method can be
provided to the company so that they can undertake the problem and solve it by themselves. Hence
in the end with help of the email or any other communication method the companycan
communicate with the software companies that they have successfully installed and implemented
the new software.
2. To monitor the progress of these changes you negotiated in question 2 above —with the credit
representatives, complete the monitoring improvements table below:
Student response to Task 5: Question 3
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Monitoring Improvements
Before Software upgrade After software upgrade Record of changes made
before the software upgrade
there was the issue with the
credit representatives as they
were not in position to input all
the essential data and the
required documents within the
aggregator software platform.
the reason underlying this fact
was that this software
aggregator required and
software upgrade and because
of this there was some issues
coming in making the entries of
the data and documents.
in case the company has
upgraded the software then this
would have resulted in much
better and effective working of
the company. The reason
underlying this fact is that after
the software upgrade the
company was in position to
enter and save the data and
documents necessary for the
credit represented in order to
manage. this would have
assisted the credit represent it is
in future as well when the
information must be useful to
the the providers of loan.
in the end it is also very
essential for the company to
record all the changes which
have been made within the
software upgradation.
Underlying this fact is that if
these changes are being
recorded then this will be
assisted to the company in the
future if the similar kind of
changes occur. This will act as a
guiding path to the companies
that in case of the same changes
or similar changes happens in
future then they can easily adapt
to all these changes in effective
and efficient manner resulting in
improving in the performance of
the company. in addition to this
all the data and the documents
necessary will be saved and
secured in proper and effective
manner.
(Task 5,Question 1 and 2, 350 words)
Assessor feedback for Task 5 — Develop, research and monitor plans to improve performance:
Good work
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Demonstrated
Resubmission (if required) Not applicable
Page 56 of 58

REFERENCES
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Collier, D.A., 2020. Exploring IDR: A Comparison of Financial Situations and Behaviors Between
Those in Traditional Student Loan Repayment and Those in Income-Driven
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Freebairn, P., 2018. Competition into the Australian Financial System. Policy.
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framework employing two decades of data. The ANNALS of the American Academy of
Political and Social Science. 671(1). pp.154-182.
Hanrahan, P., 2018. Legal Framework for the Provision of Financial Advice and Sale of Financial
Products to Australian Households. Background Paper, 7, pp.11-12.
Jiang, L., 2020. Corporate Social Responsibility Performance and Money Laundering Control
Systems: Evidence from Australian Financial Institutions (Doctoral dissertation, Curtin
University).
KIA, N., 2019. LINKING ETHICAL LEADERSHIP AND EMPLOYEE PERFORMANCE IN
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Meredith, P. and Darroch, J.L., 2018. Innovation in the Mortgage Market. In Stumbling Giants (pp.
49-66). University of Toronto Press.
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Paterson, J. and Howell, N., 2018. Everyday consumer credit overview of Australian law regulating
consumer home loans, credit cards and car loans: Background Paper 4.
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Soni, P.M. and Paul, V., 2019, March. A novel optimized classifier for the loan repayment
capability prediction system. In 2019 3rd International Conference on Computing
Methodologies and Communication (ICCMC) (pp. 23-28). IEEE.
Ssekiziyivu, B. And et.al., 2018. Borrowers characteristics, credit terms and loan repayment
performance among clients of microfinance institutions (MFIs): Evidence from rural
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