Certificate IV in Finance and Mortgage Broking - Assessment

This assessment task is designed to demonstrate the skills and knowledge required to conduct a client relationship and comply with statutory, industry and organization compliance requirements. It includes identifying and interpreting compliance requirements, delivering and monitoring a service to customers, contributing to OHS hazard identification & risk assessment, managing personal work priorities and professional development, developing and nurturing relationships with clients, other professionals and third party referrers, promoting the effective use of credit, and preparing a loan application on behalf of mortgage broking clients.

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
Plagiarism Statement
All assessments must be your own work and not a result of plagiarism or collaboration
with other students or workmates.
Assessment
The pass mark is 70% for each element. If you do not achieve this, you will receive
feedback via your email address and be asked to resubmit your assessment for a second
marking. Assignments will not be returned to you as they need to be retained for by us for
verification and audit purposes.
Task Assessments Total
Mark
Pass
Mark
Actual
Mark
1 Identify and Interpret Compliance Requirements 27 19
2 Deliver and Monitor a Service to Customers 39 27
3 Contribute to OHS Hazard Identification & Risk Assessment 41 29
4 Manage Personal Work Priorities and Professional Development 24 17
5 Develop and Nurture Relationships with Clients, Other
Professionals and Third Party Referrers
17 12
6 Promoting the Effective Use of Credit 15 10
7 Prepare a Loan Application on Behalf of Mortgage Broking
Clients
64 45
8 Steps Taken by the Credit Provider 23 16
Total 250 175
Assessor’s Initials: ____________________
Assessment Date: ____________________

Introduction
Objective The objective of this Assessment Task is to demonstrate that you have the
skills and knowledge required to conduct a client relationship and comply with
statutory, industry and organization compliance requirements.
Elements to
be assessed
To achieve this objective, you will need to demonstrate your ability to:
The assessment tasks in this assessment will allow you to demonstrate your
knowledge and skills in relation to these elements.
Assessment
process
Start by:
1. Reading the Assessment Task.
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
Statement of
Completion
Upon successful completion of this assessment you will be awarded the
Statement of Completion for FNS40815 Certificate IV in Finance and Mortgage
Broking.

Task 1: Identify and Interpret Compliance Requirements
1. Identify
compliance
requirement
s
Mortgage brokers face important compliance requirements, the foremost
among them being the reasonable lending provisions of the NCCP Act. The
penalties for non-compliance include loss of license (for businesses) and
removal from the industry (for individuals). If fraud is involved there may also
be the criminal penalties of fines and / or imprisonment.
Compliance requirements are not static. It is therefore important to stay up to
date with them.
Mortgage brokers also need to keep up-to-date with the actions of the
regulatory authorities such as APRA and the Reserve Bank. Their actions may
not amount to direct regulation, but through their effects on interest rates and
bank lending these authorities can have a very direct impact on the business
mortgage brokers are able to do.
(a) A key requirement of the responsible lending obligations is the ‘unsuitability test.’ What must a
mortgage broker do to comply with the unsuitability test?
No Mark
1. Make reasonable enquiries about the applicant's objectives and requirements /1
2. Make reasonable inquiries about the applicant’s financial situation /1
3. Verify the applicant's financial situation /1
(b) List the sorts of items a client’s requirements and objectives could include (as indicated by
ASIC).
Mark
1. The amount of credit needed, or the maximum amount sought.
2. The timeframe for which it is required.
3. The purpose and benefit sought; and
4. Whether the applicant seeks particular product features or flexibility and
understands the costs of these features and any additional risks.
/2
(c) Leading credit providers and other financial organisations have code of ethics, sometime
called codes of conduct. Select one of them and summarise it by itemising its main principles.
Mark
Confidentiality: much of the information which practitioners in the financial services
industry have access to is highly confidential. This information must not be disclosed
except in the way that was intended. This is not only a moral obligation; it is also a
legal requirement. Broker should not:
 discuss the finances of a client outside the workplace.
 provide details of a customer’s investment to a person not authorised to receive it;
and
 allow sensitive correspondence to be viewed by people without the authority to
/4

access it
Sub-total /9
Continued
(d) In point form, list the key information that the NCCP Act requires to be contained in a Credit
Guide.
Mark
the licensee’s name, contact details and Australian credit licence number;
details on any fees and charges payable by the consumer
details of any commissions likely to be received from the lender;
the names of the licensee’s six main lenders;
details regarding complaint handling, including contact details of internal and external dispute
resolution processes; and
information about the licensee’s obligation to provide a written copy of an unsuitability assessment
upon request.
/3
(e) It is important to keep up to date with compliance requirements so that the required changes
can be made to organization procedures and product offerings. Suggest three sources that
you can use.
Mark
The professional associations code of practice, larger mortgage broking organisations
usually have compliance officers who assist practitioners to meet compliance standards.
and up-to-date procedures manual.
/3
(f) Explain the requirement for Australian Credit Licensees to keep a training register.
Mark
ASIC requires credit licensees to conduct formal training programs for their brokers. They
must also have a written policy regarding training as well as maintain a training register
detailing the training undertaken by each representative.
/2
(g) Explain APRA’s current attitude towards bank lending for investment properties.
Mark
The focus of APRA’s changes is for lenders to limit interest to 30% of all new residential
lending.
/2

Sub-total / 10
Continued
Task 1: Identify and Interpret Compliance Requirements Continued
1.2
Interpret,
analyse
and
prioritise
identified
complian
ce
requirem
ents
Some of the compliance requirements are difficult to meet. Unfortunately, also
there have been some ‘rogue’ mortgage brokers who have failed to comply – to the
disadvantage of their clients.
The finance planning industry has been plagued by non-compliance in the largest
planning groups, with the image of the industry being substantially tarnished as a
result. It may not suffer greatly because of the absence of an alternative source of
financial advice.
This is not so with mortgage brokers. They are just establishing their reputation and
consumers always have alternative of going to the lenders directly.
(a) Select three tasks you perform on a regular basis that are subject to compliance
requirements.
No Mark
1. To study and perform assigned schoolwork and attend classes /1
2.
To file tax returns and pay the relevant taxes
/1
3.
To wear a mask especially in indoor public places during COVID
/1
(b) Identify the compliance requirements that are relevant to the three tasks selected, indicating
the name of the relevant legislation, regulation or code of conduct.
No
1. This task is done to comply with educational requirements in order to pass the course
in school. The grades that we need to obtain serve as measurement of how we have
complied with school requirements.
/1
2. AU PR & citizen need to file taxes before the deadline and pay any tax dues timely in
compliance with federal or national tax regulations in Australia.
/1
3. Many businesses such as restaurants, shopping centers etc require customers to
wear masks during the COVID outbreaks. It is necessary to comply with these rules
to avoid spreading the virus further as per. ASIC / 1 2 . Australian consumer law / 1
3 . National consumer credit act 2009 / 1
/1

(c) How does your organisation monitor your compliance?
Mark
By putting all plans and policies at one place and take proper follow ups. Rewrite your code
of ethics and provide better training to employees. Regular tracking the progress of these
programs to figure out whether they keep updated with the best practices in industry.
/2
Sub-total /8
Total /27
Task 2: Deliver and Monitor a Service to Customers
2.
Identify
customer
needs
The relationship with a client is generally described as beginning with the
establishment of empathy. In other words, it is first necessary for a mortgage
broker to establish that he / she is truly interested in the client and the client’s
needs. It is only after that that the mortgage broker has established the right to
interview a client.
(a) Use the internet or any other source to find a definition of empathy.
Mark
The meaning of the word Empathy is the ability to share someone else's feelings or
experiences by imagining what it would be like to be in that person's situation
(https://dictionary.cambridge.org/dictionary/english/empathy)
/1
(b) List three open-ended questions that assist in developing empathy with a client? How do such
questions indicate empathy?
No. Mark
1) How are you feeling about our service? Are you comfortable with it?
2) What are the problems that you are experiencing at the moment?
3) Can I help with anything else with your current problem?
/2
Each question aims to make the client comfortable and maintain an attitude of
empathy and courtesy.
/1
(c) List and explain the steps involved in an ‘active listening approach’.
Mark
ASK QUESTIONS - Find out about needs and wants of the client /1

Go BACK - Restate what the client has said about his or her needs to be sure the relevant
details have been heard and understood and to encourage the speaker to proceed further.
The client’s thoughts and feelings can then be used as a lead-in to further questions.
/1
SUMMARISE - to make sure both sides agree on the facts. /1
(d) How is client service commonly monitored in your organisation? What are the two possible
outcomes?
No. Mark
1. The first element is the notion of serving clients and their needs, which is seen
as the basic characteristic of a professional relationship. Another writer on
professionalism describes the same quality as a “deeply caring attitude”.2
It is said of David Maister that one of his favourite questions is to ask
professionals “Why do you do what you do?” The answer he always listens for
is “I like helping people.” If it is missing, he believes he is dealing with a
professional who is in trouble.
/1
2. The second element in the definition relates to the way the service is performed. It
is performed with “an unqualified dedication to excellence”. According to Maister,
this shows itself in enthusiasm in client service, which in turn lead to having “fun”.4
For him, a successful professional relationship is an enjoyable one.
/2
Sub-total /10
Continued
Task 2: Deliver and Monitor a Service to Customers Continued
2.1 Deliver
a service to
customers
In a survey on the reasons for referrals conducted by David Maister, only 10%
were due to the quality of technical work. The remaining 90% of referrals were due
to the quality of service.
This indicates that the key to maintaining client relationships and gaining referrals
is the provision of outstanding service. This has been described by Maister as
‘over-servicing’.
(a) Describe three ways in which a mortgage broking organisation can attempt to ‘overservice’
clients?
No. Mark
1. High number of emails/calls about marketing or advertisement to attract clients /1
2. Use of the social media to get through more potential clients which will provide opportunities. /1
3. Crate a personalised campaigns for mortgage loan that will be easily available to the clients. /1
(b) How would you keep a client informed about the progress of an application as it passed through a
creditor provider’s hands? What approximate timing might be involved?
No. Mark

1. By passing the configuration emails to the clients which should be an auto – generated email. Also
the tracing details of the application should be forwarded to the customers. As it will become
easier for them to track and this will give them a surety that their application is in the process.
/2
2. For the process and acceptance of the application, the timing taken will approximately be 1 months
for the completion to pass through the hands of the creditor.
/2
(c) Describe how you might attempt to resolve conflicts with clients.
Mark
By speaking with the mentor and discuss the issue that the client is making and provide a solution.
It can be done through the email communication or through the phone call, as meeting in the
times of COVID will not enable to follow the compliance structure of the country. The mortgage
broker should also apologise to the client that the client has faced and also ask about any difficulty
that he is facing and which could be solved by the organisation.
/2
(d) How do you can prepare clients for the hiccups that can happen while their credit application is being
processed
Mark
When the application process starts the client should be informed that their credit application can be traced
by them through the online portfolio that has been created on the organisation’s website. It will give them
an authentic information regarding the procedure of the application that has been followed.
/2
Sub-total /11
Continued
(e) The chapter on Operating a Mortgage Broking Business contains an example suggesting that a
mortgage broker acting in the best interests of clients should act as a Protector rather than an Expert.
What are the implications for this in regard to (i) advice given to clients and (ii) recommending the
most suitable loan products?.
No. Mark
1. The advice that can be given by the mortgage broker to its clients can be to work on the structuring
of the debt which could help the latter to complete the needs on the preferred time period. Also to
use the efficiency, education and empathy should be used by the client for the better
understanding of the system and the appropriateness of the bonds.
/2
2. The loan product which will be more beneficial will be home loan as it gives the credit on a low
interest rates.
/2

(f) How could you prepare yourself to deal with client concerns?
Mark
To be ready with the question that could be asked by the clients and which might create a confusion
whether to take loan or not. It can be done by using the correct ad the appropriate theories to convince the
client.
/2
(g) Give examples of the following legal breaches: breach of the duty of care, false and
misleading conduct, unconscionable conduct & conflict of interest without disclosure.
No. Mark
1. Leaking of confidential documents of the clients due to the irresponsible behaviour. /1
2. Advertisement in the name of company /1
3. No proper explanation in the contract which could give a learning disability to the client /1
4. Providing undue advantage to relatives while conducting business transactions /1
(h) Once a desirable market segment has been identified, a mortgage broking business can put
its mind o developing suitable marketing strategies. List examples of different strategies that
might be used.
Mark
1. Video email campaigns using the complete information in a concise way about the loans.
2. Can host virtual events without any costs
3. Give advertisements on the newspapers, social median platforms.
/2
Sub-total /12
Continued
(i) What steps can be taken to keep up to date with product changes and ensure that this
knowledge is properly disseminated?
Mark
A person from the management should be allocated to use this department, in case of the modifications in
the policies of the loans. He should pass the appropriate information to the senior manager with the
complte change that has been done by the government authority and should be applied in the organisation
structure rapidly.
/2

(j) What are the procedures for dealing with client complaints in your organisation?
Mark
A customer care number should be provided to the client for the communication of the complaints and should
be taken corrective measure for resolving the complaint.
/2
(k) What normal protocols should for protecting the confidentiality of client files?
Mark
All the information must be saved in the firewall with the passwords and the confidentiality documents must be
signed by every employee that the office information must not be leaked out. /2
Sub-total /6
Total /39

Task 3: Contribute to OHS Hazard Identification & Risk Assessment
3. Contribute
to workplace
hazard
identificatio
n
Occupational health and safety hazards are often considered only in terms of
physical injury, perhaps the result of working with heavy machinery, working in an
excessively noisy environment, or slipping or falling. Just as relevant, however, is
work-related stress. This describes the physical, mental and emotional
reactions of workers who perceive that their work demands exceed their
abilities and/or their resources (such as time, help/support) to do the work.
For the questions that follow, please read ‘Overview of Work-related Stress’
from the NSW Government. It may be found at:
Other ‘Tip Sheets’ from the same website may also be useful.
(a) How would you define workplace stress?
Mark
It is an emotional and physical response when there is a conflict among-st employees of
an organization with respect to job assignment and the amount of control an employee
applies to fulfill such job assignment.
/4
(b) Suggest at least two ways in which work-related stress may affect client relationships.
Mark
 Working for long hours affect the mental ability of the persons working in office.
 Heavy workload to meet deadlines on time will generate stress that affects the
client relationship.
/2
(c) Suggest at least four approaches you can take to reduce workplace stress? (Hint: you may
find suggested ways if you key ‘handling workplace stress’ into a search engine).
Mark
1. Encouraging employees to take regular breaks in between the work.
2. Provide flexible work schedule as per needs of an employee.
3. Providing incentives on regular interval when workload increases.
4. Regular meditation programs helps in reducing stress whether in professional or
personal life. /4
Sub-total /10
Continued

Task 3: Contribute to OHS Hazard Identification & Risk
Assessment Continued
3.1 Gather
information
about
workplace
hazards
In assisting in the control of work-related hazards, you will need to be access
suitable information.
Please read ‘Glossary of Job Demands and Job Resources’ from the QUT/ANU
People at Work project. It may be found here:
http://web.archive.org/web/20150227212940/http://
www.peopleatworkproject.com.au/LiteratureRetrieve.aspx?ID=174670
(a) Explain the distinction between ‘job demands’ and ‘job resources’ risk factors.
Mark
The job demands risk factors could be high volume of work, complex working
assignments, working environment is not comfortable, tasks are emotionally draining
whereas job resources factors could be support from others, regular performance
feedback, job controlling which reduces job demands etc.
/4
(b) Identify two ‘job demands’ risk factors that are relevant to your workplace and describe what
detrimental effect they might have.
No. Mark
1. Regular conflict between the management and 2.Complex assignment and
increased working hours.
/ 2
2. Conflict between the management creates, environment of work place negative and
staff start finding difficult to work in such an environment and complex files and high
working hours affect the mental health of employees and they start leaving the
organization in search of alternate job opportunity.
/ 2
Sub-total /8
Continued
Task 3: Contribute to OHS Hazard Identification & Risk
Assessment Continued

3.2
Contribute to
OHS risk
assessment
Once risks have been identified, they should be controlled. A way of doing this is to
use “job resources” available in the organization.
Once again, please refer to the ‘Glossary of Job Demands and Job Resources’ that
was referred to earlier.
Apart from OHS issues, there are other significant risks that have to be dealt with
at all levels in an organisation.
(a) List the job demand factors you have identified previously and for each one select one or
more job resources that might be used to mitigate these risks.
No. Mark
1. Regular conflict between the management can be mitigated with the help of proper
work allocation between the management, roles and responsibility must be clear and
work should be properly delegated to subordinates
/ 1
2. Complex assignments should be divided between groups and supervision must be
conducted with senior member and working hours must be flexible according to the
availability of employees.
/ 1
(b) Select one of the job resources listed and suggest how you could apply it in your work
situation.
Mark
Regular support in work amongst the employees will help in building work environment
healthy and it helps in developing bond and trust relationship amongst the team members.
It can be applied at the work place by dividing the assignment in groups and such group
must be led by a senior member.
/ 1
(c) Select a significant risk issue, other than OHS issues, that has an impact on the way you
perform your duties and explain how it is managed.
Mark
Significant risk can be salary and bonus in the form of incentives, provided by an
organization can directly affect performance of staff as same designated persons are
performing same assigned task but their pay scale are different because of their
educational qualification . It can be managed by dividing the structure of work place on the
basis of qualification and experience.
/3
Sub-total /5
Continued

Task 3: Contribute to OHS Hazard Identification & Risk
Assessment Continued
3.3
Environment
al risks
The risks that should be considered in management decision-making include
environmental risks.
This is giving rise to a new way for businesses to report to stakeholders that goes
beyond traditional financial reporting. It is called “triple bottom line” reporting.
(a) List the three criteria of triple bottom line reporting. What is the likely effect of this form of
reporting on management decision-making at all levels.
No. Mark
1.  Profit , People and the planet are the three criteria of triple bottom line reporting. / 2
2. It helps in improving the corporate culture by making employee attraction and
retention easier. It helps in increasing the employees engagement and loyalty
towards organization.
/ 2
(b) Select the annual report of a leading financial organization such as a major bank and, after
identifying the organization, summarise what it says about its environmental impact
(suggested maximum length of 50 words).
Mark
HSBC UK is a leading bank working globally. They are transforming their operation and
supply chain management to net zero, accelerating innovation to help the climate change
and lower carbon emission together.
/ 2
(c) Briefly indicate the environmental protection assistance that your business organization is
able to receive from your State or Territory environment protection agency.
Mark
 All the business should manufacture their goods and services in such a manner
that must be safe and sustainable considering nature and consumer.
 Their processes much be properly equipped to decompose the waste material
extracting from the factory's, Plants etc that affect the environment severely.
/ 2
Sub-total /8
Continued

Task 3: Contribute to OHS Hazard Identification & Risk
Assessment Continued
3.4 Effective
team
management
Risk assessment also requires effective team management and participation and
the right sorts of questions being asked.
(a) Describe the benefits of team meetings.
Mark
Identifying the mistakes and errors conducted by the juniors while performing the task. It
also helps in co-ordinating and proper supervision of the work on regular and timely
manner.
/ 2
(b) Consider your own role in team meetings and describe the approach you and other members
should take to information sharing.
Mark
If any updation has taken place regarding the assignment then I must inform all the team
regarding the same so that they can update their assignment accordingly.
/ 2
(c) Give examples of the types of risks that should be considered in all team meetings.
Mark
If team meetings are conducted virtually then there is a risk of leakage of confidential information to
competitors or outsiders. Further too much meetings drains the productivity of project and time
management.
/ 2
(d) Explain why leadership is important in risk management.
No. Mark
1. Leads to active participation of all members. /1
2. Helps in balancing the ambition with reality of work. /1
3. Promoting collaboration amongst the large projects. /1
4. Shaping the risk culture amongst the project team. /1
Sub-total /10

Total /41

Task 4: Manage Personal Work Priorities and Professional
Development

4. Set
and meet
own work
priorities
One of the challenges we face in a workplace situation is time management.
Management theory on the subject began with the Pareto Principle, suggested
that only about 20% of the things we do produce 80% of the results we achieve.
The challenge than becomes to set time aside for the 20% that matters.
The theory was taken further with Stephen Covey’s Time management matrix.
(a) Describe Covey’s Quadrant 2.
Mark
Covey's Quadrant 2 is essential as it concentrates on the time and energy of the effectual
people and it also focuses on the discipline to manage the targets in accordance to the
deadline in order to accomplish personal as well as professional goals.
/2
(b) List three of your work activities that should belong in Covey’s Quadrant 2.
Mark
1. Regular Exercise.
2. Proper relationship building.
3. Critical thinking.
/3
(c) Suggest ways that you might utilize to ensure that proper time is spent on Quadrant 2
activities so that stress is avoided.
Mark
1. Long term planning
2. Daily Preparation
/2
(d) Digital diaries are now available as both computer and mobile phone apps. Describe the
place of digital diaries in managing personal work priorities.
Mark
1. Clear Vision.
2. Improves time management.
/2
(e) Describe the importance of setting goals in terms of personal well-being.
Mark
Writing goals and objectives assist in understanding that what a person wants to
accomplish and enhance the possibilities of sticking to them.
/2
Sub-total /11
Continued
(f) What does Stephen Corvey recommend for “re-creation” (a Quadrant 2 activitiy),

Mark
The more time people concentrates on the quadrant 2, it will add more quality in the lives
of people. Effectually translating all high given this quadrant objective into the working
needs an appropriate framework for effectual making of decisions.
/2
(g) What are the common characteristics of work goals?
Mark
1. Goals must be specific and well defined.
2. It must be relevant to job.
3. Goals need to be realistic and achievable.
/2
Sub-total /4
Continued

Task 4: Manage Personal Work Priorities and Professional
Development Continued
4.1. Develop
and
maintain
professional
competence
One of the outcomes of spending more time on Covey’s Quadrant 2 is that we
have more time for professional development. Desirable professional
development includes a range of activities begin with reading the morning press
to undertaking a degree course at university. Increasingly these days, it may also
involve doing a course through the internet.
Setting professional development goals is part of the goal setting we should
undertake in are working life. If we have personal goals we are more likely to
make things happen. Also, research suggests that goal setting relieves stress and
increases physical wellbeing.
Goal setting of this type is a Covey Quadrant 2 activity. As such it is something
we have to deliberately set time aside for. This may be easier over time because
that way it becomes more of a habit.
Ideas for professional development do not come out of a vacuum. You should be
prepared to seek advice from colleagues and other mortgage brokers.
(a) List three activities you might consider undertaking to increase your competency (in addition
to formal professional development training) to comply with ethical, legal and procedural
requirements.
No. Mark
1. Working in a team projects as well as participation in the new projects in the work
place can increase competency.
/1
2. Training and learning on the job is an essential way of developing as well as
increasing competency. Attend training courses / seminars / conferences in and
outside your company.
/1
3. Attending several seminars, training, courses, conferences in the organization or
outside of it.
/1
(b) Describe how you can obtain ideas for professional development from (i) feedback and (ii)
competency standards.
No. Mark
1. Prioritizing work in accordance to the urgency which can lead to enhancing
productivity and low stress. So, accomplishing my targets before deadline and my
seniors can provide me with suitable feedback.
/1
2. Consistently knowing, collecting and implementing authentic info into the work. So,
critical thinking and gathering information matches the competency standards.
/1
(c) Where do you see yourself in three years time? List three skills or competencies you will need
to arrive there. Against each skill or competency nominated, suggest how you will attain it.
No.
Mark

1. As sales head in a large organization. /1
2. Critical thinking, Creative skills, problem solving skills /1
(d) Suggest ways in which mortgage brokers may network to assist other mortgage brokers.
Mark
Buying leads of mortgage is the way to ensure proper candidates and after giving leads to other brokers with
data like who that consumer it wants to target
/2
Sub-total / 9
Total /24

Task 5: Develop and Nurture Relationships with Clients, Other
Professionals and Third Party Referrers
5 Develop
professional
business
relationships
David Maistre has defined professionalism as an ‘‘… an unqualified dedication to
excellence in serving clients and their needs.’ This has important implications for
how client relationships are established and maintained.
Mortgage brokers are also able to develop and benefit from relationships with
other brokers because their main competition is not with each other. Rather, it is
the banks and other financial institutions.
Networking within the industry is therefore important.
Meeting other mortgage brokers requires much the same techniques as meeting
clients, other professionals and third party referrers. The relationship depends on
the development of rapport and the ability to contribute to the relationship in key
knowledge areas.
(a) What needs to be demonstrated at the outset in a client relationship? When is appropriate to
demonstrate competence?
No. Mark
1. It follow professionalism between client relationship that serve excellence in serving
effective relationship.
/1
2. Networking within the industry is also an important term. /1
(b) Imagine that you are explaining the function of mortgage broking to a client. What words
would you use?
Mark
Meeting other mortgage brokers needs higher term to same techniques as meeting
clients, other professional and third party referrers.
/2
(c) Explain the importance of a code of ethics in the relationship between a professional and
clients.
Mark
The importance of code of ethics in the relationship among it that rely on the development
of rapport and the ability to contribute to the relationship in key knowledge fields.
/2
Sub-total /6
Continued

(d) Drawing on your own experience or the experience of a more experienced colleague or
manager, describe a situation where a need was identified to use language and concepts
appropriate to cultural differences. How was the need met?
No.
1. It is a significance implications for how client dealings are established and get
maintained in an effective and efficient manner.
/1
2. Language utilise to convey the cultural ideas and beliefs and on the other hand
both culture and language that enable us to look backward in history.
/1
Sub-total /2
Continued

Task 5: Develop and Nurture Relationships with Clients, Other
Professionals and Third Party Referrers Continued
5.1 Build and
maintain
business
networks and
relationships
For a relationship with a client to continue, they need an assurance of continuing
mutual benefit. The continuing mutual benefit is also important in relationships
with other professionals, including relationships with ‘outsiders’ such as
accountants, real estate agents and other professionals.
(a) List two others type of professional your organization uses to develop client relationships and
indicate in each case how it is able to provide them with a benefit in the relationship.
No.
1. It involves relationship in terms with client to continuing that they require an
assurance of continuing mutual advantages.
/1
2. As there are varied term of advantages that involves manner to decrease the
stress. It will feel good by itself, but it will decrease the risk for health situations.
/1
(b) Surveys indicated that two-way dialogue, or ‘conversation’ is of overriding importance in
developing client relationships, relationships with colleagues and also other professional
relationships. List four characteristics of this process.
No. Mark
1. symmetry /1
2. short segments /1
3. specifics /1
4. summary /1
(c) Other professionals that a mortgage broker might forms contacts with are referred to in
marketing literature as ‘Centres of Influence’ (COI). Why does David Maistre place them in
his ‘second tier’ in order of effectiveness. What activities in David Maistre’s first tier does your
organization engage in.
No. Mark
1. Those people or organizations who can boost their market access /1
2. It also involves credibility by referrals, testimonials, and word-of-mouth /1
Sub-total /8
Continued

(d) List four occupations and professionals that may become Centres of Influence.for your
organisation.
Mark
 Business analyst.
 Construction worker.
 Designer.
 Entrepreneur
/1
Sub-total / 1
Total /17

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. Financial Institution like banks and other sources are the institution which assist
the individual by providing them funds by charging a rate of interest or consider
something as collateral. In order to advising Roslyn regarding funds aids are
listed in below.
4. Commercial banks
Installment credit
/1
2. 1.Commercial banks - these institutions are the essential sources in working
capital. They provides a broad range of loans tailored to have the particular
needs of an individuals.
2.Installment credit - The other method under which the inventory has been
purchased and the ownership product is taken instantly but the defrayal
made by involvement over a time duration.
/2
3. From the above option it is suggested that she should consider
Installment credits, as per knowledge it is beneficial for future as it helps in
managing funds according and these charge a reasonable interest rate that
is affordable for an individual to pay. These institute provides variety of
products and services just as local banks, investment accounts, debit
cards and many other services for people in order to help them.
The disadvantage of the institutions are described in below.
3. late payment fees are a prime source of income for instalment
buying.
4. the person have no choice of choosing the date of making payment.
5. as per the banking institute of Australia the average credit must be
in proper payment of the rates so that bank can fund them easily.
/2

Sub-total /5
Continued

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
Hi Roslyn,
Greeting of the day
The letter Is to inform you that your profile had been allowed to funds according
to your requirement. You have to pay a installment according to your amount for 5
years. The bank feels great to provide you the amount. Hope you will be feel satisfied
with the services.
Thank you
/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. During applying for loan or credit person requires to make a documents that are
related to the person who wants an amount. Like legal documents, identity
proof and many others.
/2
2. Credit bureaus needs their details from their data giving, which can be creditors,
debt collections, vendors and many other. Most department concentrate on
credit accounts whereas, some also access more all-inclusive details
considering payment history, on bills, rent and more.
/2
Task 6.4.
Further information
Roslyn mentions that her mother’s washing machine has broken, and she urgently needs a
replacement washing machine. The cost is less than a thousand dollars and she plans to use her
credit card for the purchase. She tells you that she will make the minimum required repayment per
month until she pays the machine off.
Draft a letter to Roslyn providing advice about her plan.
Mark
Dear Roslyn,
As you have planning to utilize credit for making payment of the repairing charges, but it
is advice that you should don’t use credit card to make payment it will charge installment
it will cost double by the main cost. So you should pay it in one time. Hope you will
understand it .for any assistance you can contact us .
Thank you
/2

Sub-total /10
Total /15

Task 7: Prepare a loan application on behalf of mortgage broking
clients
Case Study — Evaluating and processing a loan application
Read the following case study then answer the questions that follow.
Ross and Melissa Cooper are a young couple who have been married for five years, during which
they have been renting an apartment while saving to buy an apartment of their own. They do not
have any children at this stage.
After some months searching, they have found a small two-bedroom apartment that suits their
needs. The purchase cost of the property is $480,000, and they have provided a deposit of
$60,000. You are recommending a standard variable loan.
Ross has been working at Gaines Consulting Pty Ltd. for 12 years and has a salary of $80,000.
Melissa has been working at Jackson Equipment Hire Pty Ltd for 8 years and has a salary of
$70,000. Neither has had previous employment, apart from casual work when they were younger.
The full details of Ross and Melissa that you have collected are as follows:
Applicant 1 Applicant 2
Loan purpose Purchase home (owner occupied)
Security value $480,000
Deposit $60,000
Address Unit 2, 27 High St.,
Mackville, NSW. 2080
Unit 2, 27 High St.,
Mackville, NSW. 2080
Status Renting Renting
Years there 5 years 5 years
Contact details Phone (W)
Phone (H)
02 9200 1111 (w)
02 9400 9900 (h)
02 9310 2000(w)
02 9400 9900 (h)
Mobile [phone] 960 000
Email [e-mail] [e-mail]
Number of dependants Nil Nil
Employment Gaines Consulting Pty. Ltd Jackson Equipment Hire Pty Ltd
How long? 12 years 8 years
Gross income ( p.a.) $80,000 p.a. $70,000 p.a.
Credit history Personal loan to purchase a car — since
repaid.
Personal credit card with Central Bank with
a limit of $3,000. Current balance: $300
Personal credit card with Northern with a
limit of $2,000. Current balance: $300
Store card with Wilson’s Department Store.
Current balance: S250

Note: All credit cards are repaid in full when
due.
Note: All credit cards are repaid in full when
due.
ASSETS AND LIABILITIES
Assets Liabilities
Details Market value Details Monthly
payments
Amount owing
Cash at bank $15,000 Credit card limit:
$2,000
$2,000 $300
Deposit paid on
property
$60,000 Credit card limit:
$3,000
$3,000 $300
Motor vehicles:
1.
2.
$15,000
$7,000
Other:
Personal effects $30,000
Business value Nil
Total assets $127,000 Total liabilities $600
Surplus/deficiency: $126,400
OTHER DETAILS:
They are seeking a loan term of 25 years. Other requirements are:
 proposed settlement date — 6 weeks time
 ability to make additional payments from time to time without penalty
 monthly repayments
 redraw facility.
The applicants will have no other financial commitments other than their monthly mortgage
commitments, rates and utility costs and strata fees.
The current variable home loan rate is 6% pa.
Note: For the purposes of this assignment, any first home purchase assistance should be
ignored.
OTHER INFORMATION
APRA is concerned that interest rates may rise and because of this it is requiring all lenders to
“stress test” all housing loans at a borrowing rate of 7% p.a.

Task 7.1.
Apart from requiring the presentation of a Credit Guide, the NCCP Act says nothing about what a
mortgage broker should say about him/herself at the beginning of a client interview. In the space
below, make a few brief points about what you would say about yourself and your firm at this
stage. Remember that at the outside the client is primarily looking for assurance that the broker is
concerned about them and their interests.
Mark
 I, as a mortgage broker will provide necessary documents about my firm being
registered under the National Consumer Credit Protection Act.
 I will provide the past work experiences I have in providing the required loan to the
clients and working as bridge between the borrowers and lenders.
/2
Task 7.2.
List in point form the important information a Credit Guide conveys to the credit applicant.
Mark
 A credit guide gives the main preliminary information about the applicant to the broker and the lenders
who are willing to lend funds to the applicant. The Five C's of credit guide provides creditworthiness of
the potential borrowers.
 First C is Character; it tells about the credit history of the applicant.
 The second C is Capacity; it tells about the debt-to-income ratio of the applicant.
 The Third c is Capital, it tells about the amount of capital the applicant has in hand at the moment.
 The fourth C is Collateral; it tells about the assets that can form as security for the loan amount.
 The fifth C is conditions, it tells about the purpose the loan is being raised and the amount needed
and the interest rates of the same.
/3
Task 7.3.
Under the Anti-money Laundering and Counter-terrorism Financing Act 2006 (AML/CTF Act),
mortgage brokers are required to establish the identity of their clients. To do this they must cite
original copies of at least three primary documents and one secondary document. List three
primary documents and one secondary document below.
Mark
 The three primary documents of identification are:
5. Australian Passport
6. Australian Citizen Certificate
7. Overseas Passport
/3

The secondary identification document is Medicare Card.
Sub-total /8
Continued
Task 7.4.
Mortgage brokers should present adequate information to clients to enable them to make a
choice between loans. This involves conducting research to determine suitable loans and
presenting clients with a choice among, say, three loans that are considered to be suitable for the
client’s requirements. The characteristics of the three selected loans are then presented to clients
in a way that allows a comparison to be made. The presentation may be made a piece of paper,
or other means such as a Powerpoint overhead.
You are now required to use the internet or other sources to choose three loans that you believe
will meet the requirements of Ross and Melissa. The relevant details should be placed in the
spaces provided.
Mark
Credit Provider /6
Product Name Basic Home
Loan
Premium
Home Loan
Clean Energy
Home Loan
Interest Rate Type (%) 2.15% 2.15% 2.10%
Comparison Rate (%) 2.19% 2.55% 2.62%
Minimum Loan Amount ($) 2000000 8000000 2500000
Maximum Loan Amount ($) 20000 20000 10000
Minimum Loan Term 5 5 5
Maximum Loan Term 25 years 25 years 25 years
Maximum LVR (%) 80% 80% 60%
Maximum Insured LVR (%) 95% 95% 95%
Mortgage Offset Account
(Yes/No) No No
No
Loan Redraw Facility (Y/N) Yes No NO
Split Loan Facility (Y/N) No Yes No
Fixed Interest Option (Y/N) Yes No Yes
Task 7.5 (a)

Explain significant features of the loan products that you have chosen in words that the client
would understand. Your answer should be restricted to features relevant to the clients.
Mark
1. The basic home loan product rate is 2.15% which is very less and it gives a
loan for a minimum amount of $ 20000.
2. The premium home loan is also at 2015 % but its comparison rate is 2.55 %. It
provides a maximum term loan of 25 years.
3. The clean energy loan product interest rate is 2.10 and give a loan atb the
minimum amount of $ 10000.
/2
Sub-total /8
Continued
Task 7.5 (b)
Credit providers always have other fees and charges beyond their stated interest rates. Select
one of the loans you have set out in Task 7.4 as the one preferred by Ross and Melinda, and
explain any additional fees and charges in a manner that your clients can understand.
Mark
According to the above rate specifies in task 7.4, it is mentioned that Rose and Melinda
should chose premium home loan product. There is no additional fee that will be charged
to the client.
/2
Task 7.6
It is important to verify the information that you obtain from clients, particularly information that
relates to income. List the documents that you should ask for and then examine to verify the
incomes of Ross and Melissa.
Mark
1. The mortgage brokers verify employment and the information related to income
directly from the employers of the applicants.
2. Generally they only need verbal confirmation but sometimes they may need email
verification as well.
3. The brokers verify income and self employment by obtaining tax return transcripts
from the Australian Taxation Office.
/3
Task 7.7

In dealing with clients, it is important to explain technical concepts in ‘plain English’ so that they
understand them. In the first two spaces below, explain the terms ‘LVR’ and ‘insured’ LVR’ in
terms that that your clients will understand. Then, in the third space, explain how Lender’s
Mortgage Insurance is normally paid, once again expressing yourself in a way that the clients are
likely to understand.
No. Mark
1. LVR is the loan-to-value ratio which is the amount that the borrower has raised
which is represented as the percentage of the value of the property they are
buying.
/1
2. Insured LVR refers to the amount of LVR which is secured by another asset. /1
3. The cost of LMI can be paid in lump sum but some lenders may let this amount be
added to your loan amount and paid off with your loan repayments.
/1
Task 7.8
Mortgage brokers assist their clients to complete their preferred lender’s credit application form,
as well as applications for the First Home Buyer’s Grant and (where applicable) stamp duty
exemption. Examples of these forms are set out over the following pages and you are required to
complete them on behalf of Ross and Melissa. In this case, please fill in our sample of ANZ
application form. Treat these buyers as first home buyers and treat this property as a new
property, for the purpose to get use to filling FHOG and Exemption forms. Remember that each
form must be signed by the client, so facsimile signatures must be attached
Mark
The forms for the following pages can be found at:
https://www.homeloanexperts.com.au/wp-content/uploads/2016/05/ANZ-Loan-application-
cover-sheet.pdf
https://www.revenue.nsw.gov.au/help-centre/resources-library/072017-ofh001.pdf
(application form only)
https://www.revenue.nsw.gov.au/help-centre/resources-library/oda066.pdf ((application
form only)
/15
Sub-total /23
Continued
Task 7: Prepare a Loan Application on Behalf of Mortgage Broking
Clients Continued
Task 7.9.
It is important to keep clients informed about the steps involved in the credit approval process.
Indicate how your organization keeps your client informed as the loan application proceeds. What
are the likely normal time intervals for each step that you explain to your clients.
No. Mark
1. The clients are informed on timely basis about their application for the loan on the
online site and also via direct messages to the registered email and cell phone
number.
If the loan is approved an official mail is sent to the applicants about the further
proceedings of the loan. If it is rejected the status of same and the cause is
mentioned therein in the mail.
/2

Task 7.10
Assess the loan application of Ross and Melissa Cooper against the five C’s.
a) Character
How would you assess the applicants’ character?
Mark
The character of the applicant can said to be normal as they do not have any ongoing
loan. They have raised personal loans for two purposes in the past which have been
repaid with all obligations and in time.
/2
b) Capacity
(i) What will the applicants’ monthly payment be, given the current variable lending rate of
6% p.a.? (Hint: visit a website such as: http://www.yourmortgage.com.au/calculators/).
(ii) Using the ‘income percentage method’, assess the applicants’ capacity to repay the loan
(25 words)
No. Mark
1. The monthly payment of the applicants will be $3092.65 /1
2. The income of the applicants is enough to pay the interest liabilities and the loan
principal amount will be paid in the 25 years of time.
/1
Sub-total / 6
Continued
Task 7: Prepare a Loan Application on Behalf of Mortgage Broking
Clients Continued
c) Capital
(i) How would you verify the equity the applicants intend to contribute to the purchase?
(ii) What should you be careful about regarding this contribution? (50 words)
No. Mark

1. The capital and the income of the applicants will be verified using the tax return
transcripts and directly from the employer as well. The contribution of the
applicants is going to be $ 60,000 which are required to be deposited at first. The
other 420000 amount will be acquired as loan.
/1
2. The broker should be careful about this contribution that yes the applicant will
contribute this amount in the loan and sign necessary documents clearly stating
about this amount for future clarity.
/1
d) Collateral
(i) Assuming the valuation placed on the property is $480,000, calculate the loan to valuation
ratio (LVR).
(ii)Given the LVR that you have calculated, what steps might the bank take to protect its
position? (25 words)
No. Mark
1. (420000÷480000)*100 = 87.5 % /1
2. The bank should be careful about the amount that it is lending to the applicant that
they are contributing 87.5% of the investment and should make sure that it will earn
the returns as interest and the principal amount as such after the specified period
of time.
/1
e) Conditions
Using the information that has been presented, identify any ‘conditions’ that might impact on
this loan application. How should they be handled?
Mark
The main aim of the applicants to gather this loan is to invest in the housing property as
soon as possible and both of the applicants are independent and does not have any
dependent person on them.
/2
Task 7.11
What is your organization’s policy about notifying applicants of the outcome of their application?
Mark
The notification of the application is sent to the applicants notifying them about status of
the application via email and cell phone.
/2
Sub-total /8
Continued
Task 7.12

The credit application that is forwarded to the credit provider is accompanied by supporting
documentation used to verify the information concerning the financial position of the client. List
six types of document that are likely to be forwarded. In the case of Ross and Melissa Cooper.
No. Mark
1. Credit History /1
2. Income statement /1
3 Tax statement /1
4. Current Address /1
5. Passport details /1
6. Citizenship details /1
Task 7.13
What should be the rules regarding access to client files?
Mark
No information provided in these files will be shared to third party and will solely be
conveyed to the bank authorities who will approve the loan for the house.
/2
Task 7.14
There are times that you might suggest to clients that they should have a fixed interest loan for a
period. Explain why you would do this.
Mark
The clients are given this option to safeguard them from the fluctuations that might occur
in the interest rate of the loans. This creates a safe environment for them to repay back
the principal amount and interest in standard time and at an standard rate.
/1
Task 7.15
List the information you should include on a client file.
Mark
All the information related to the client, all the C's of credit note and other information
which might be useful to the bank authorities in approving the loans should be included in
the file of the client.
/2
Sub-total /11
Total /64

Task 8: Steps Taken by the Credit Provider
8 Build and
maintain
business
networks and
relationships
As indicated, the process of interviewing a client, carrying out a preliminary
assessment, and forwarding a credit application to a credit provider should take
no longer than two days. The credit provider’s task, however, is more involved
and takes longer because there are more matters to consider than the final
assessment, which is normally carried out soon after the credit application has
been received from the mortgage broker.
These matters include having the security valued and negotiating any additional
support, checking all details, preparing an offer letter, preparing security
documentation, having the loan documentation signed, attending settlement,
registering the mortgage and having the mortgage documents stamped.
The offer letter is in fact the loan contract the mortgage broker becomes involved
once again – to check that the requirements of the loan purpose are met and to
ensure that the client understands all terms and conditions.
Task 8.1.
The final assessment of the credit application is carried out by an officer of the credit provider, or
at a higher level if that officer’s authority is exceeded. What is that officer’s responsibility in terms
of the NCCP Act.
Mark
If the authority of an officer is exceed then then the credit officer is responsible in terms of
NCCP act like they have to checked all the security values or any additional support, all the
details related to the client and loans, sign on all the documents, attend the settlement,
registration and documentation of mortgage with stamped.
/2
Task 8.2.
Give examples of the information that the mortgage broker may be asked to obtain at the time of
the final assessment.
Mark
At the time of final assessment the mortgage broker are able to ask different types of
information related to their income, any previous debts, purpose of taking the loan, family
background, detailed information about the property, any adverse credit or not and many
more. These types of information can be asked by a mortgage broker from a consumer of the
loan. With the help of these information the broker are able to give an accurate assessment
to to their client.
/2
Task 8.3.
Sometimes additional support, such as a third party guarantee is required in housing loans.
Indicate when such support may be required and the matters about which the credit provider
should seek to be satisfied. How is the required evidence about those matters normally obtained?
No. Mark
1. In taking the home loan the additional security like third party guarantee plays a
very significant role.
/1
2. This support help when the user of the loan doesn’t pay the interest of the loan.
The guarantor of the debt is responsible for paying the loan which have been
borrowed by the near one.
/1
3. The guarantee of the loan can be taken by the mortgage broker from the third
party. The guarantee of the debt can be came on the form of deposit or collateral.
/1

Sub-total /7
Continued
Task 8.4.
Distinguish between the credit provider’s final assessment and the credit review carried out by
the credit provider?
Mark
The person who provide the credit to the user of the loan is called credit provider and they
are more involved in the process of assessing the loan in comparison to the person who
review the loan.
/3
Task 8.5.
List five of the checks the credit provider would normally perform before preparing an offer letter.
No. Mark
1. Banks /1
2. Supermarkets and department stores /1
3. Credit unions /1
4 Pay day loan companies /1
5. Businesses offering hire purchase agreements /1
Task 8.6.
Why do mortgage brokers become involved once again when the offer letter is forwarded to the
client? What legal responsibility under the NCCP Act leads to this involvement?
No. Mark
1. If the mortgage broker is involved once again in the offer letter then it
provide safeguard to the consumer in terms of licensing and any
government law.
/2
2. Along with this suitability related to the credit and national credit loan helps
them to regulate the credit lending conduct.
/2
Task 8.7.
List four other matters relating to the offer letter that the mortgage broker should check.
No.
1. Name of the person who take the debt.
2. Income or earning of the consumer's.
3. The social security number of the consumer which have been obtained from the
credit report.
4. The address of the property. /1
Sub-total /13
Continued

Task 8.8.
Imagine that you are the client’s solicitor writing to the client. In words that the client is likely to
understand explain: what happens at settlement; how funds are normally disbursed following
settlement; and how the title document is registered.
No. Mark
1. settlement is a legal procedure that is facilitated by your legal and financial
allegorical and those of the seller.
/1
2. It's when ownership outmoded from the seller to them then they pay the balance of
the sale cost.
/1
3. The seller sets the settlement date in the contract of sale. /1
Sub-total /3
Total /23