Industry Knowledge and the Lending Process Gap module DFMB1GMASv1

This is the DFMB1_GM_ASMG_v1 Written Project for Industry Knowledge and the Lending Process Gap module. It includes instructions for completing and submitting the project, working with clients, complying with codes of practice, and more. The project covers topics such as maintaining professional relationships, adhering to policies and procedures, and improving business practices. The project also includes questions related to identifying internal and external networks, communication channels, and client confidentiality.

Written Project
DFMB1_GM_ASMG_v1

Industry Knowledge and the Lending Process ― Gap module
(DFMB1_GM_AS_v1)
Student identification (student to complete)
Please complete the fields shaded grey.
Student number
Project result (assessor to complete)
Result — first submission Not yet demonstrated
Parts that must be resubmitted
Result — resubmission (if applicable) Not applicable
Result summary (assessor to complete)
First submission Resubmission (if required)
Part 1: Instructions for completing and
submitting this project n.a. n.a.
Part 2: Question 1 Not yet demonstrated Not applicable
Question 2 Not yet demonstrated Not applicable
Question 3 Not yet demonstrated Not applicable
Question 4 Not yet demonstrated Not applicable
Question 5 Not yet demonstrated Not applicable
Part 3: Working with clients Question 6 Not yet demonstrated Not applicable
Question 7 Not yet demonstrated Not applicable
Part 4: Complying with Codes of Practice Question 8 Not yet demonstrated Not applicable
Question 9 Not yet demonstrated Not applicable
Question 10 Not yet demonstrated Not applicable
Feedback (assessor to complete)
[insert assessor feedback]
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Before you begin
Read everything in this document before you start your project for Industry Knowledge and the
Lending Process – Gap module (DFMB1_GM_v1).
About this document
This document is the Written Project and includes the following parts:
• Part 1: Instructions for completing and submitting the project
• Part 2, 3 and 4: Project questions.
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 assessment within your enrolment period. Your study plan is in the KapLearn
Industry Knowledge and the Lending Process ― Gap module (DFMB1_GM_v1) subject room.
Units of competency and evidence guide
This project is your opportunity to demonstrate your competency against these units:
FNSCUS511 Develop and maintain professional relationships in financial services industry
FNSFMB411 Prepare loan applications on behalf of clients
FNSFMB412 Identify client needs and present broking options
FNSFMK515 Comply with financial services regulation and industry codes of practice
FNSINC411 Conduct work according to professional practices in the financial services industry
FNSINC412 Apply and maintain knowledge of financial products and services
Note that this project is one of two items required to meet these units of competency; you are
also required to submit your transcript for FNS41815 Certificate IV in Finance and Mortgage
Broking.
Once you are deemed competent in this project and your transcript has been reviewed and
approved by Kaplan Professional, then you will be awarded the units of competency above. These
units form DFMB1 Industry Knowledge and the Lending Process, the first subject in FNS50320
Diploma of Finance and Mortgage Broking Management.
You will then be able to move on to the remaining subjects in FNS50320 Diploma of Finance and
Mortgage Broking Management, DFMB2 Complex Lending and Broking and DFMB3 Business
Management Skills.
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Part 1: Instructions for completing and submitting the
project
Saving your work
Download this document to your desktop, type your answers in the spaces provided and save your
work regularly.
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(e.g. 12345678_DFMB1_GM_AS_v1_Submission1).
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everything is clear and unambiguous.
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exceeding the suggested word count. Please do not include additional information which is
outside the scope of the question.
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Submitting the written project
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Please refer to the Project submission/resubmission videos in the ‘Assessment’ section of
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project.
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Your written project must be submitted on or before your due date. Please check KapLearn for
the due date.
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The written project marking process
You have six (6) weeks from the date of your enrolment in this subject to submit your
completed project.
If you reach the end of your initial enrolment period and have been deemed ‘Not yet
demonstrated’ in one or more assessment items, then an additional four (4) weeks will be
granted, provided you attempted all assessment tasks during the initial enrolment period.
Your assessor will mark your project and return it to you in the Industry Knowledge and the
Lending Process ― Gap module (DFMB1_GM_v1) subject room in KapLearn under the
‘Assessment’ tab.
Make a reasonable attempt
You must demonstrate that you have made a reasonable attempt to answer all of the questions in
your written project. Failure to do so will mean that your project 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 and oral project.
How your written project is graded
Project 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 Demonstrated
or Not yet demonstrated.
Your assessor will follow the below process when marking your written project:
• 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.
‘Not yet demonstrated’ and resubmissions
Should sections of your project 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 project, so your second assessor can see the
instructions that were originally provided for you. Do not change any comments made by a
Kaplan assessor.
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We are here to help
If you have any questions about this written project, 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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Part 2: Maintaining Professional Relationships
Question 1
You build on your network base each day at work as you interact with your colleagues, and
internal and external stakeholders. You even build networks in your social life.
Networks and professional connections are important as they can be helpful in building on your
industry knowledge, your career development and also to grow your business.
Hint/Tip: Watch the video ‘Networking for Success’ ― the link is in the Toolbox
Internal networks ― are usually people you know and connect with inside your organisation, for
example, colleagues, people from other departments.
External networks ― are usually people you know and connect with outside of the organisation,
for example, other professionals who do not work in your organisation that are aligned with your
work, industry associations, family, friends, sporting clubs, social clubs, committees, children
school, social/professional media platforms.
(a) Identify and make a comprehensive list (minimum of ten (10)) of internal and external
networks. This can include networking groups and/or associations.
List people by their role rather than their names ― if you are not currently working, you can
list the networks you would have in a mortgage broker role.
(b) From the list you created in part (a), choose six (6) networks. At least one (1) must be from
the financial services industry and one (1) must be a third-party referrer; the others may be
from any other connections. Complete the table below by outlining how your connection
with these networks is of benefit to you and to the broking business.
(c) From the list in Part (b), choose three (3) connections/networks. Explain how you develop
and maintain those relationships. Include how you will stay in contact and also how you will
enhance the relationship to ensure it remains mutually beneficial.
(d) Identify and explain the importance of three (3) communication channels and tools that you
use to develop and maintain professional relationships.
(100 words)
Student response to Question 1
(a) Internal network comprise of-
 colleagues
 employees from other departments
 people from management
External network comprises of -
 friends
 members from family, such as relatives
 professional media platforms
 social club committees
 accountant
 real estate agent, etc.
(b)
Network Benefit for you
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1. accountant Will benefit in having the accuracy in the data hence the decision can be
taken effectively.
2. real estate agent Will aid in fetching the most appropriate deals for the organization.
3. friends Can aid in promoting the business
Network Benefit to the business
4. profession media platform Aid in promoting the organization on the media platforms
5. colleagues Overall improve the working environment of the organisation
6. employees from other
departments
Ensure the effective flow of communication in the company
(c) Answer here
Network/connection —
name
Type of
network/connection
Actions you take to develop and
maintain the relationship
1. colleagues Informal Maintain the friendly and trustworthy
relationship
2. friends Informal Trustworthy and helping nature
3. accountant Formal While keeping the adequate flow of
communication
(d)
Communication method Why is this method important?
1. formal communication Helps in effective exchange of information on all levels of company
2. informal communication Helps in maintaining the friendly relationships among employees in the
company
3. unofficial communication Helps in mainlining the secrecy for confidential informations
Assessor feedback Resubmission required?
No
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Question 2
Communicating and interacting with your network partners is essential for any business, but
limitations and rules must be adhered to. These include organisational policies and procedures,
legislative and regulatory requirements, and professional codes of practice including how you
present yourself.
(a) What legislation needs to be considered when communicating with network partners?
(b) Provide an example of how you adhere to your organisation's policy and procedures when
communicating and interacting with network partners.
(c) Provide an example of how client confidentiality is maintained when sharing information.
(100 words)
Student response to Question
(a ) The regulatory framework of Australian securities and investment commissions needs to be considered
when communication with network partners.
(b) The assurance of adherence of institutions policy can be taken care of by the way of timely notifying the
employees and other related workers about the newly updated procedures as well as the policies of the
organization. The proper communication of the said policies ensures that there lies the smooth running of the
company and that too in accordance of the sates ethics and values which mainly has been established by the
concerned leaders of the organization.
(c ) The confidentiality of the client can be ensured by the companies by the way of using the platform of
secured file sharing and messaging. Also by the way of storing the physical documents while having the
fully controlled access is the other way of maintaining the confidentiality of customers.
Assessor feedback Resubmission required?
No
Question 3
(a) Identify two (2) practices that could be implemented to improve business practices when it
comes to developing and maintaining networks.
(b) Explain which personnel you would involve in reviewing your network connections to ensure
that they are appropriate for the needs of your business; and why you would involve them.
(75 words)
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Student response to Question 3
(a) The very first can be the ascertainment of required network. The other can be the usage of good networking
etiquette. One can also start honing for the online options and also can move forward with the idea of joining
groups while targeting the concerned people.
(b) There lies the number of people who can be used for network reviewing, where out of them some are the people
one used to work with such as the past work colleagues. The other can be the friends and employees of the
company.
Assessor feedback Resubmission required?
No
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Question 4(a)
Your manager has asked to meet with you to discuss the need to increase the home loan leads
from referral partners. There has been a decline recently and your manager believes that this may
be caused by key network partners sending their referrals to other sources. Your manager wishes
to discuss any strategies that you may have to overcome this issue and has asked you to come
prepared:
(i) What organisational policies or processes may negatively affect working with network
partners? Identify at least two (2) policies or processes.
(ii) What could be improved to help you to nurture your relationships with network partners?
Hint/Tip: You may draw inspiration from the policies or processes you mentioned in (i).
(iii) How can your organisation develop its reputation in the community and with network
partners?
(100 words)
Student response to Question 4(a)
(I) The network policies are considered as the set of rules, conditions as well as the constraints which allows
organization to designate as top who is authorized for the purpose of connecting to the network along with the
factors under which they can and cannot proceed with the network.
(ii) the organization can improve the relation ship with network partners by various means such as by managing and
marketing the their personal brand, aiming for quality over quantity, scheduling the appropriate time for the
purpose of networking, etc.
(iii) The organization can develop their reputation by the number of ways such as the by developing and maintaining
their brand identity. The other by the way of displaying the values of the organization.
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Question 4(b)
In your role as a mortgage broker, effective communication skills are important.
Following your meeting with your manager, they have advised that they are going on leave for a
couple of days and request that you conduct a team meeting with the other brokers. This meeting
is to discuss how to increase the home loan applications moving forward. Part of the brokers role
within the organisation is to look for opportunities to increase home loan leads from referral
partners.
(i) Describe how you would engage your colleagues to identify what their role and
responsibilities are in the organisation.
(ii) How do the roles and responsibilities in (i) fit into the wider organisation’s requirements?
(150 words)
Student response to Question 4(b)
(I) One of the most appropriate way in which one can engage their colleagues is by the means of
providing the extra rewards and showing the care towards towards them. Also by the way of clearly
defining the expectations and while also setting a good example in front of them.
(II) The clear ascertainment of the role and responsibilities in the organization can aid in various ways.
Such as from boosting the operational efficiency for enhancing their hiring process.
Assessor feedback Resubmission required?
No
Question 5
From the list prepared in Question 1, select three (3) networking partners with at least one (1)
from the financial services industry (i.e. financial planner, accountant) and one (1) a third-party
referrer (i.e. real estate agent) and explain the following for each:
(i) How you will initially commence a relationship with the networking partner.
(ii) How you will maintain the relationship with the networking partner over time.
Student response to Question 5
Answer here
Network partner How you will initially commence a relationship How you will maintain the relationship
Colleagues By having formal introduction or small
get together
While giving the helping hand and
maintaining the aspect of trust among
both of us.
Real Estate Agent Regular communication through
formal email
By maintaining professional
communication with clear purpose and
understanding of each other’s interests
Friends By meeting at get together and
informal communication on social
By understanding their financial
requirements and appreciating and
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media motivating
Assessor feedback Resubmission required?
No
Assessor feedback:
[insert feedback]
Date assessed: Click here to enter a date
Does the student need to resubmit? No
Questions that need to be resubmitted
First submission Not yet demonstrated
Resubmission Not applicable
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Part 3: Working with clients
Question 6(a)
An essential component in the financial services industry is to be able to identify a client’s financial
needs and present options that meet their requirements and objectives.
The following table requires you to outline how you would tailor your approach and
recommendations to suit a client’s circumstances. Review the three (3) client scenarios below and
do the following for each client:
(i) Select a product type that meets their circumstances
(ii) Explain why you have chosen this product type, that is, how will it meet the client’s
requirements.
(100 words)
Student response to Question 6(a)
Answer here
Customer Product selection Why chosen (How will it meet their requirements)
A first home buyer with a ten
percent deposit and who is eligible
for a first homeowner grant seeks a
home loan with low fees and does
not have cash reserves to pay for
Lenders Mortgage Insurance (LMI).
First Home loan deposit scheme This is the right product selected for a first home buyer
with inability to pay for LMI. This is because an
Australian citizen can buy their first property with just
5% deposit and zero LMI, courtesy of the Federal
Government.
A homeowner with no mortgage on
their home wishes to purchase a
residential investment property.
They do not wish to use their
existing property as security.
They want the property purchase to
be positively geared if possible.
Professional package home loan In order to positively gear the residential investment it is
important to ensure that the rental income is more than
loan expenditure and repayments. Professional package
loan reduce loan repayment amount through discounted
interest rate and is suitable for making residential
investment.
A self-employed borrower’s
business has only been in operation
for two (2) years but is very
successful. He has been to his bank,
and they asked for two full years of
financial statements (profit and
loss), but in the start-up year, the
business made a small loss, and the
bank were unable to help. He has
good equity in his home, and now
requires funds for an extension on
the house.
Using home equity The borrower can use their appropriate home equity
amount to get finance option for home extension.
Assessor feedback Resubmission required?
No
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Question 6(b)
When providing credit assistance, mortgage brokers must act in the best interests of that client.
ASIC Regulatory Guide 273 (RG 273):
• Mortgage brokers must act in the best interests of each individual consumer to whom credit
assistance is provided. (RG 273.16)
• If there is a conflict of interest when providing credit assistance, you [mortgage broker] are
required to give priority to the consumer’s interest. You must not prioritise your [mortgage
broker] own interests or the interests of credit providers or third parties. (RG 273.9)
A copy of RG 273 can be downloaded from the following ASIC link, <asic.gov.au/regulatory-
resources/find-a-document/regulatory-guides/rg-273-mortgage-brokers-best-interests-duty>.
Returning to your product selection for Question 6a above, explain how your recommendation for
each client complies with best interests obligations in their situation.
(100 words)
Student response to Question 6(b)
The recommendation has been made to the client considering their needs for the business and also taken into
consideration the financial position they hold in their existing profile. Special attention must be given on the
repayment capacity of the client that whether they are able to repay the loan they are obtaining from the bank
or financial institution or not. Further the loan is sanctioned considering the fact that what amount they
required in the business and in how much time they are able to repay the same.
Customer Product selection How will you apply best interests duty in this
situation
A first home buyer with a ten per
cent deposit and eligible for a first
homeowner grant, want low fees,
does not have cash reserves to pay
for LMI.
First Home loan deposit scheme This loan is in best interest of the client because it
helps avoid LMI while also reducing loan repayment
amount. It will help the client complete loan
repayments without worrying about LMI.
A homeowner with no mortgage
wishes to purchase a residential
investment property. They do not
wish to use their existing property as
security. Wants the investment
property purchase to be positively
geared if possible.
Professional package home loan This advice advocates for the interests of the client
because t helps them reduce loan repayment amount
and achieve their aim of residential investment to get
positively geared property.
A self-employed borrower who has
only been in operation for 2 years,
but the business is very successful.
He has been to his bank, and they
asked for two full years of
financials, but in the start-up year,
the business made a small loss, and
they were unable to help. Has good
equity in the home, requires funds
for an extension on the house.
Using home equity This advice works in interest of the client because it
helps them use their home equity without increasing
financial burden so that home extension can be
completed.
Assessor feedback Resubmission required?
No
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Question 6(c)
The first home buyer in Question 6(a) has requested additional information on the loan product
suggested by the mortgage broker. They have asked if lenders mortgage insurance (LMI) could be
avoided, if their parents offered to act as guarantors (by using their own property as security).
Prepare an email clearly and concisely to inform this client what the benefits would be having a
family guarantee loan, and the requirements and obligations of the parents offering the
guarantee.
(100 words)
Student response to Question 6(c)
To
The XYZ client
Sir,
We are pleased to inform you that we are delighted that you are considering our company services for
obtaining the loan from us. The product selected for Client 6 (a) involves the usage of first home loan deposit
scheme through which LMI can be avoided entirely. The First Home Loan Deposit Scheme is a Federal
Government initiative to support eligible first home buyers purchase a home faster. It can be used by the
client without addressing LMI. It will help the client achieve the aim for purchasing a house without paying
for LMI.
Assessor feedback Resubmission required?
No
Question 7
Providing credit services comes with certain legislative and regulatory requirements. Explain what
legislative or regulatory requirements a credit provider must consider in the following situations:
(a) What systems need to be in place to ensure that a client’s confidential information is
secure? How and where would you file a client’s information?
(b) What methods must be adopted to establish and verify the identification of the borrower?
(c) Which legislation governs consumer lending in Australia?
(50 words)
Student response to Question 7
(a) The information technology system the bank using must be competent enough to trace any kind of
error that could be carried out from the external sources.
(b) The methods include identification of documents with respect to identity of the borrowers. The
address proof in the form of water bills, electricity bills etc. helps the bank for identification of the
borrower who is obtaining loan from the bank.
(c) The national consumer credit protection act 2009 governs consumer lending in the Australia.
Assessor feedback Resubmission required?
No
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Assessor feedback:
[insert feedback]
Date assessed: Click here to enter a date
Does the student need to resubmit? No
Questions that need to be resubmitted
First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first
submission or your resubmission.
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Part 4: Complying with Codes of Practice
The financial services sector includes several industry associations that require members to adhere
to a Code of Practice.
To answer the following questions, you are required to download Codes of Practice from the
provided links and respond to related questions.
Question 8
Download the Australian Banking Association (ABA) Code of Practice and read Chapter 14,
‘Taking extra care with customers who are experiencing vulnerability’,
<www.ausbanking.org.au/wp-content/uploads/2021/02/2021-Code-A4-Booklet-with-COVID-19-
Special-Note-Web.pdf>.
(a) Summarise the key reasons it is important to take special care when servicing clients who
may fall into the category of being ‘vulnerable’.
(b) Provide an example of a ‘vulnerable person’ you may encounter when providing credit
assistance.
(c) Describe how you would apply the ABA code for the vulnerable person in Question 8b
above.
(100 words)
Student response to Question 8
(a) Those customers who are facing vulnerability in the form of age related impairment, cognitive
impairment, elder abuse, family or domestic violence, financial abuse etc. will be provided special
care in providing services to the above clients.
(b) The example of the vulnerable person could be the person who are facing domestic or family
violence at their home and they are in need of the financial assistance too.
(c) The ABA code will be applied to the person on the basis of documentation that provide proof
that such person has been facing vulnerability. To prove something, it is necessary that there
must be the written documentation for the whole thing and then only the application of such
code would be made.
Assessor feedback Resubmission required?
No
Question 9
Download a copy of the Mortgage and Finance Association of Australia (MFAA) Code of Practice and
read Section 6: ‘Contracts with Customers’, <www.mfaa.com.au/sites/default/files/About
%20Library/MFAA%20Code%20of%20Practice%20160904.pdf>.
(a) Explain how the primary obligations of this section apply when charging a fee for service.
(b) What could be the potential outcome should an MFAA member fail to comply with this
aspect of the Code?
(100 words)
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Student response to Question 9
a) The primary obligation for charging the fee for the service would be that the fee is not defined for the
task which has been performed accordingly.
(b) The potential outcome should an MFAA member fail to comply with this aspect of the code are being
that they are liable for the penalty with respect to their non-compliance of the work. It is strictly
important for them to comply with the code as they are governed with that and the provisions covered
under that must be fully complied with. The non-compliance will lead to penalty and remover of
membership to work as the finance broker.
Assessor feedback Resubmission required?
No
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Question 10
Download a copy of the Finance Brokers Association of Australia (FBAA) Code of Practice and read
Section 5.7. ‘Instructing Licensed Valuers’,
<os-data-2.s3-ap-southeast-2.amazonaws.com/fbaa-com-au/bundle2/code-of-conduct-final-
2017.pdf>.
(a) Summarise the requirements that this code sets out regarding dealings with licensed valuers.
(b) Provide one (1) example of an ‘improper relationship’ with a valuer.
(100 words)
Student response to Question 10
(a) The summarised points while dealing with the licensing brokers is being covered below:
 To promote the honourable practice.
 To consider all the question relating to the interest of finance broking professional.
 To provide libraries containing technical literature that may be the interest of finance
brokers.
 To act as intermediary in order to resolve dispute between finance brokers and their
respective clients.
(b) The example of improper relationship with the valuer will be:
The valuer is not correctly valuing the property that has been asked by the broker to carry out the
valuation thereof. This will lead to dispute between the finance broker and the client.
Assessor feedback Resubmission required?
Yes
Assessor feedback:
[insert feedback]
Date assessed: Click here to enter a date
Does the student need to resubmit? No
Questions that need to be resubmitted
First submission Not yet demonstrated
Resubmission Not applicable
To pass this subject, you will need to be assessed as DEMONSTRATED for either your first
submission or your resubmission.
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