FNS50315 Finance and Mortgage Broking: Assignment 3 & 4

FNS50315 Finance and Mortgage
Broking
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Contents
Assignment 3.........................................................................................................................................2
Assignment 4.........................................................................................................................................9
Question 1.........................................................................................................................................9
Part A.............................................................................................................................................9
Part B...........................................................................................................................................11
Part C...........................................................................................................................................12
Question 2.......................................................................................................................................13
A. Trust........................................................................................................................................13
B. Company..................................................................................................................................15
Question 3.......................................................................................................................................17
Question 4...................................................................................................................................20
Question 5...................................................................................................................................21
Question 6...................................................................................................................................23
References...........................................................................................................................................24
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Assignment 3
Question 1: Describe how you gather the information required when establishing the
client’s complex lending requirements?
While determining the needs with regards to the lending requirements of the client, it is
important to clearly define the services to be provided to the client. In case of client seeking
the loan, the lending services will be required to be provided to the client including the
serviceability analysis, assistance in preparation and submission if loan documents and
assistance in procurement of loan. For this purpose face to face interview is conducted with
the clients in personal and questions are asked to them with regards to the lending
requirements and responses are noted. These questions include personal details, assets held
by client, liabilities and obligations due, sources and amount of income, investment and
insurance details, purpose of loan, utilisation of loan amount, etc. In case of cultural
differences with the client, the written interview form is given to the client to be filled in his
own language. The language used by the client in filling the form can be translated for
interpretation. However, the information provided by the client in any form is kept
confidential and secured so as to protect the integrity of the client under the professional
conduct.
In some cases the client faces emotive issues such as financial deficiency causing depression
or some dream project for the purpose of which loan is sought. In these cases if the loan
application is rejected, the client is seriously hurt. In case of emotionally sensitive client
assurance if loan approval is not given at the beginning and the client is helped with other
loan options for availing the loan amount. Also in these cases a rapport is established so that
the sensitive clients understand each other and communicate effectively. Throughput the
complete process of broking, regular contact with the client will be maintained so that the
client can be informed about the status of loan application and also the changes or
amendments of any required by the client can be enquired. The periodic discussions with the
client during the process will help in preventing the risks occurring due to changes in the
client requirements, legislation or any other causes.
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Question 2: Describe how to record and document your interaction with clients?
The information will be gathered by the clients by filing the information in the form. All the
information which will be gathered during the interview will be diarized and then evaluated
(Peya, 2018).
Image: Loan Form
Source: Peya, 2018
This is the template which will be used for gathering the information of the clients coming for
the interview in the initial stage (Peya, 2018). For gathering the information the face to face
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conversation will be done instead of the telephonic conversation and what all responses will
be gathered will be entered in the diary for preparing the loan agreement. The procedures that
will be followed are that first the form will be filled by the clients coming for the loan
approval and then all the information will be collected. The documents that will be gathered
before granting the loan to the clients are: the financial statements of the business, bank
statements, any current loan document, income tax returns, personal financial information,
business license and a business plan (Kiisel, 2015).
The information gathered will be recorded through the proper use of the technology through
which the data of all the clients will be at the one single place so that whenever required can
be tracked through the loan account number. The software that will be designed by the
organisation will be used to access the entire database at the proper place and the spread
sheets will be maintained of all clients. The proper loan structure will be followed and
presented to the clients according to the guidelines of the organisation. The systematic
procedure will be their which explains the exact instalments and the percentage rate at which
the loan will have to be repaid. All the documents presented for the loan will be reviewed
before granting the loan.
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Question 3: Describe how you research and consider complex broking solutions based
on the clients’ needs?
The complex or special feature of a client situation includes the liquidity of the firm that in
how much time the loan will be repaid back. This shows that the work environments and the
situations affect the performance. The other factors that include are international purchases,
products available to the advisor and the volatility of the expected growth and the income.
The analysis of the client’s situation may include various risks some of which are allocation
of the assets, economic risks arise due to the change in the economic factors and the market
risks which can be caused due to the change in the various factors such as the economic
cycle, fixed assets, property and the stock market.
The broker needs to refer the clients to the tier 1 in case when the client who has taken the
loan from the organisation has been unable to pay back the amount taken against the
collateral. In this scenario the client will be taken to the financial advisor or the accountant
who will guide the client according to the company’s at and guidelines. The loan structures
are analysed and measured by the financial position of the client that actually the current
status of the customer who is seeking for loan is going on. The inappropriate options are
rejected on the basis of the creditworthiness that is possessed by the client seeking for the
loan. The options are analysed and checked to ensure the noncompliance through the various
acts some of which includes legislation acts, ethical guidelines that has to be followed and the
regulatory for evaluating the ability of the customer to achieve objective of the client.
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