Pre-Settlement Requirements in Finance and Mortgage Broking Industry

FNSFMB501 SETTLE
APPLICATIONS AND
LOAN ARRANGEMENTS
IN THE FINANCE AND
MORTGAGE BROKING
INDUSTRY
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TABLE OF CONTENT
Introduction......................................................................................................................................4
Main body........................................................................................................................................4
1. Pre-Settlement Requirements..................................................................................................4
2. Codes of Practice, Legislation and Statutory Requirements...................................................5
3. Policies and Procedures for Opening an Account for Funds to be Disbursed.........................6
Third party report activity................................................................................................................7
1 Relevant legislation..................................................................................................................7
2. Resettlement conditions of the finance approval.....................................................................7
3. Communication with the other parties who have involved in settlement process...................8
4 checking of necessary documents.............................................................................................8
5 checking of loan contract..........................................................................................................8
6. Instructions to party who is acting for the lender....................................................................9
7. Register and stamp of the security...........................................................................................9
8. Arrange for the drawdown of funds by the client....................................................................9
9. Requirement of the loan approval and instructions from the client.......................................10
10 Advise the client for the disbursement of fund.....................................................................10
11 Pre- settlement condition required by the lender..................................................................10
12 pre settlement evidence required by the lender....................................................................10
13 Documentation required by the lender.................................................................................11
14 Roles of various parties involved in the settlement process.................................................11
15 settlement issues...................................................................................................................11
16 process of registering the security documentation................................................................11
Research task and written..............................................................................................................12
Conclusion.....................................................................................................................................14
REFERENCE................................................................................................................................15
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Introduction
Loan plays vital role in growing the business. Finance industry provide loan to the business
so that they can grow and flourish. Mortgage option is also having with the business. This report
will discuss pre settlement requirements which include evidence required by lender. Legislation,
statutory requirement and process of opening account for fund disbursement will also analysed.
Further report will prepare settlements. This report will also discuss questions which are related
with pre settlement, security process, and settlement and documentation management.
Main body
1. Pre-Settlement Requirements
A. Pre-settlement conditions required by lenders:
There is various conditions which lenders are required which includes taking consent for prior
mortgage if the mortgage security being adopted (Amal and Kartika, 2021). There are several
documents which is required by the lenders like credit check, signed application form, loan
contract, guarantees etc.
B. Pre-settlement evidence required by lenders:
Loan settlement cannot be preceded until all the documents which is received is correctly filled
and signed. Following are the evidence which should be taken.
Loan contract:
This contract consists of the details of the loan agreement which should be read carefully and
make sure that all the things are approved by the lending experts which further includes
borrowers name, mortgagor name, amount which have been approved, loan terms, repayment
amounts, fees, security conditions etc.
Mortgage document:
Legal document which is lodged with territory for registration the mortgage.
Repayment form:
Form is filled for setting direct debt for repaying the loan.
Certificate of witness form:
This document is signed by the witness, so it is required by the mortgagor for signing the
documents in witness presence.
Borrower certificate:
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