FNS40815 Certificate IV in Finance and Mortgage Broking Module 2 Practical Assessment
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FNS40815 Certificate IV in Finance and
Mortgage Broking
Module 2 Practical Assessment
Submission instructions:
Key steps that must be followed:
1. Please complete the Declaration of Authenticity at the bottom of this page.
2. Once you have completed all parts of the assessment and saved them (e.g. to your
desktop computer), login to the Monarch Learning Management System (LMS) to submit
your assessment.
3. In the LMS, click on the file ‘Submit Cert IV FMB Module 2 Practical Assessment’ in the
Module 2 section of your course and upload your assessment files by following the
prompts.
4. Please be sure to click ‘continue’ after clicking ‘submit’. This ensures your assessor
receives notification – very important!
Declaration of Understanding and Authenticity *
I have read and understood the assessment instructions provided to me in the Learning Management
System. I am aware of where to find the assessor’s feedback for the assessment. I am aware of the
appeals process, should the need arise. I also understand I must be assessed as ‘satisfactory’ in all parts of
the assessment to gain an overall satisfactory result for this unit of competency. I understand a person
found responsible for academic misconduct will be subject to disciplinary action (refer to Student
Information Guide).
I certify that the attached material is my original work. No other person’s work has been used without due
acknowledgement. I understand that the work submitted may be reproduced and/or communicated for the
purpose of detecting plagiarism.
Student Name*: Date:March 2019
FNS40815 Certificate IV in Finance and
Mortgage Broking
Module 2 Practical Assessment
Submission instructions:
Key steps that must be followed:
1. Please complete the Declaration of Authenticity at the bottom of this page.
2. Once you have completed all parts of the assessment and saved them (e.g. to your
desktop computer), login to the Monarch Learning Management System (LMS) to submit
your assessment.
3. In the LMS, click on the file ‘Submit Cert IV FMB Module 2 Practical Assessment’ in the
Module 2 section of your course and upload your assessment files by following the
prompts.
4. Please be sure to click ‘continue’ after clicking ‘submit’. This ensures your assessor
receives notification – very important!
Declaration of Understanding and Authenticity *
I have read and understood the assessment instructions provided to me in the Learning Management
System. I am aware of where to find the assessor’s feedback for the assessment. I am aware of the
appeals process, should the need arise. I also understand I must be assessed as ‘satisfactory’ in all parts of
the assessment to gain an overall satisfactory result for this unit of competency. I understand a person
found responsible for academic misconduct will be subject to disciplinary action (refer to Student
Information Guide).
I certify that the attached material is my original work. No other person’s work has been used without due
acknowledgement. I understand that the work submitted may be reproduced and/or communicated for the
purpose of detecting plagiarism.
Student Name*: Date:March 2019
P a g e | 2
* I understand that by typing my name or inserting a digital signature into this box that I agree and am
bound by the above student declaration.
Important assessment information
Marking and feedback
This assess contains six (6) assessment activities, each containing specific instructions. You must
answer every question/complete each task within each activity. This particular assessment forms
part of your overall assessment for the following units of competency:
BSBRSK401
FNSFMB403
FNSFMB401
FNSFMB501
Grading for this assessment will be deemed ‘satisfactory’ or ‘not satisfactory’ in line with
competency-based principles.
What does ‘satisfactory’ mean?
These answers contain sufficient evidence in response to the question/s with limited serious
errors in fact or application. If incorrect information is contained in an answer, it must be
fundamentally outweighed by the display of competence. This will be assessed against a
marking guide provided to assessors for their determination.
What does ‘not satisfactory’ mean?
This occurs when an assessment does not contain sufficient evidence of applied knowledge and
skill. These answers may not address the question specifically, or are incorrectly applied.
Answers that omit to provide a response to any significant issue (where multiple issues must be
addressed in a question) may also be deemed not satisfactory. Answers that have faulty
reasoning, a poor standard of expression or include plagiarism may also be deemed not
satisfactory. Please note, additional information regarding Monarch’s plagiarism policy is
contained in the
Student Information Guide which can be found here:
http://www.monarch.edu.au/student-info/
What happens if you are deemed not satisfactory?
Re-assessment
As soon as practicable after you have been informed of the requirement to be re-assessed, you
will be given one more opportunity to re-submit the assessment. Before you make your second
attempt, you will need to consult with your trainer/ assessor and revise the training.
March 2019
* I understand that by typing my name or inserting a digital signature into this box that I agree and am
bound by the above student declaration.
Important assessment information
Marking and feedback
This assess contains six (6) assessment activities, each containing specific instructions. You must
answer every question/complete each task within each activity. This particular assessment forms
part of your overall assessment for the following units of competency:
BSBRSK401
FNSFMB403
FNSFMB401
FNSFMB501
Grading for this assessment will be deemed ‘satisfactory’ or ‘not satisfactory’ in line with
competency-based principles.
What does ‘satisfactory’ mean?
These answers contain sufficient evidence in response to the question/s with limited serious
errors in fact or application. If incorrect information is contained in an answer, it must be
fundamentally outweighed by the display of competence. This will be assessed against a
marking guide provided to assessors for their determination.
What does ‘not satisfactory’ mean?
This occurs when an assessment does not contain sufficient evidence of applied knowledge and
skill. These answers may not address the question specifically, or are incorrectly applied.
Answers that omit to provide a response to any significant issue (where multiple issues must be
addressed in a question) may also be deemed not satisfactory. Answers that have faulty
reasoning, a poor standard of expression or include plagiarism may also be deemed not
satisfactory. Please note, additional information regarding Monarch’s plagiarism policy is
contained in the
Student Information Guide which can be found here:
http://www.monarch.edu.au/student-info/
What happens if you are deemed not satisfactory?
Re-assessment
As soon as practicable after you have been informed of the requirement to be re-assessed, you
will be given one more opportunity to re-submit the assessment. Before you make your second
attempt, you will need to consult with your trainer/ assessor and revise the training.
March 2019
P a g e | 3
You are re-assessed in only the areas assessed as not satisfactory. It is at the assessor/s
discretion to re-assess the entire assessment should it be demonstrated an overall
understanding of this unit has not been achieved.
You will know your assessment is deemed not satisfactory if your grade book in the Monarch LMS
says ‘NS’ after you have received an email from your assessor advising your assessment has
been graded.
Important: It is your responsibility to ensure your assessment resubmission addresses all areas
deemed unsatisfactory by your assessor. Please note, if you are still unsuccessful in reaching a
satisfactory standard after resubmitting your assessment, you will be required to repeat those
units.
In the event that you have concerns about the assessment decision then you can refer to our
complaints and appeals process, also contained within the
Student Information Guide.
When does ‘competence’ come in to it?
If you achieve a grade of satisfactory for ALL assessments for a unit of competency, you will be
deemed competent in that unit.
How to answer written questions
After each question, there is a blank text box for you to start typing your answer in, as indicated
below.
1. Here is a sample task instruction, asking you to enter text in the box below.
Type your answer here...
2. What is the answer to this question?
You can type as much as you like. The blank line is not an indication of how much you should
write. The box will expand with the amount of text you enter. If you are not sure how much to
write, look at the question hints, criteria, and word count guide. Note – the word count is a GUIDE
ONLY. It’s not a maximum or a minimum, just a clue based on the model answer written by the
course developers.
For some tasks, you’ll be asked to copy and paste content in to the answer box. If in doubt, ask
your trainer.
Role play video activities
Some of these activities are partly or completely made up of simulations where you’ll need to
play the role of a broker interacting with a client or with colleagues. For these activities, you’ll
need to:
Read the activity instructions carefully.
March 2019
You are re-assessed in only the areas assessed as not satisfactory. It is at the assessor/s
discretion to re-assess the entire assessment should it be demonstrated an overall
understanding of this unit has not been achieved.
You will know your assessment is deemed not satisfactory if your grade book in the Monarch LMS
says ‘NS’ after you have received an email from your assessor advising your assessment has
been graded.
Important: It is your responsibility to ensure your assessment resubmission addresses all areas
deemed unsatisfactory by your assessor. Please note, if you are still unsuccessful in reaching a
satisfactory standard after resubmitting your assessment, you will be required to repeat those
units.
In the event that you have concerns about the assessment decision then you can refer to our
complaints and appeals process, also contained within the
Student Information Guide.
When does ‘competence’ come in to it?
If you achieve a grade of satisfactory for ALL assessments for a unit of competency, you will be
deemed competent in that unit.
How to answer written questions
After each question, there is a blank text box for you to start typing your answer in, as indicated
below.
1. Here is a sample task instruction, asking you to enter text in the box below.
Type your answer here...
2. What is the answer to this question?
You can type as much as you like. The blank line is not an indication of how much you should
write. The box will expand with the amount of text you enter. If you are not sure how much to
write, look at the question hints, criteria, and word count guide. Note – the word count is a GUIDE
ONLY. It’s not a maximum or a minimum, just a clue based on the model answer written by the
course developers.
For some tasks, you’ll be asked to copy and paste content in to the answer box. If in doubt, ask
your trainer.
Role play video activities
Some of these activities are partly or completely made up of simulations where you’ll need to
play the role of a broker interacting with a client or with colleagues. For these activities, you’ll
need to:
Read the activity instructions carefully.
March 2019
P a g e | 4
Download the right script from the LMS.
Find someone to act as your client or colleague. This doesn’t have to be someone who
looks/sounds like the fictional client or colleague; it can be your partner, friend, colleague,
etc.
Record a video file of the role play. If in doubt, look at the tips for video recordings on the
LMS.
Upload the video file of the role play when you submit the rest of the materials for this
assessment. If in doubt, look at the tips on video file uploads on the LMS.
For the role play, you’ll need to:
Have a quiet, private space where you can effectively record the video. This could be your
spare room at home, an office at your workplace, or even a study room at your local
library.
Be professionally dressed and well groomed – like you’re ready for a day on the job!
Get your partner to read the client or colleague’s part/s.
Respond appropriately to what they say and do. This includes:
o Answering their questions
o Addressing their concerns
o Asking them questions to clarify their understanding
When you’re conducting the role play, don’t forget about:
Using appropriate body language and gestures, including eye contact
Speaking professionally, and at the appropriate pace
Using plain English that’s suitable for the client or colleague you’re dealing with
Listening without interrupting (remember your active listening skills)
Not ignoring the person if you need to look something up during the discussion
Good luck
Finally, good luck with your learning and assessments. Remember, your trainers are here to
assist you
March 2019
Download the right script from the LMS.
Find someone to act as your client or colleague. This doesn’t have to be someone who
looks/sounds like the fictional client or colleague; it can be your partner, friend, colleague,
etc.
Record a video file of the role play. If in doubt, look at the tips for video recordings on the
LMS.
Upload the video file of the role play when you submit the rest of the materials for this
assessment. If in doubt, look at the tips on video file uploads on the LMS.
For the role play, you’ll need to:
Have a quiet, private space where you can effectively record the video. This could be your
spare room at home, an office at your workplace, or even a study room at your local
library.
Be professionally dressed and well groomed – like you’re ready for a day on the job!
Get your partner to read the client or colleague’s part/s.
Respond appropriately to what they say and do. This includes:
o Answering their questions
o Addressing their concerns
o Asking them questions to clarify their understanding
When you’re conducting the role play, don’t forget about:
Using appropriate body language and gestures, including eye contact
Speaking professionally, and at the appropriate pace
Using plain English that’s suitable for the client or colleague you’re dealing with
Listening without interrupting (remember your active listening skills)
Not ignoring the person if you need to look something up during the discussion
Good luck
Finally, good luck with your learning and assessments. Remember, your trainers are here to
assist you
March 2019
P a g e | 5
Activity 1
Providing credit assistance
Scenario:
Your clients Claudia and Michael have chosen to appoint you as their credit assistance provider.
They have signed and returned your credit proposal.
You are now preparing to lodge a loan proposal on their behalf.
Download: The client information summary for Claudia and Michael
Using the personal information provided in the client information summary and any other
information you select (note: Be sure to identify the source of that information).
1. Complete the LMI serviceability calculations. Create a PDF copy of the report. Upload the
PDF when you submit your documents for the Module 2 Assessment.
Serviceability calculator: Genworth
https://www.genworth.com.au/serviceabilitycalculator-prd/201703.aspx
Note: Use this household expenditure measure (HEM) calculator, if required:
https://www.homeloanexperts.com.au/mortgage-calculators/living-expenses-calculator/
2. Calculate the LMI premium for the proposed transaction.
LMI premium calculator: Genworth
https://www.genworth.com.au/lender/lmi-tools/lmi-premium-estimator/
3. Complete the ‘Packaging an LMI Proposal’ quiz at:
https://www.genworth.com.au/test-articulate/Packaging-an-LMI-Proposal/story_html5.html
and then list the key transaction documents, in the correct category:
Submit to LMI
Provider:
Keep on file: Dispose:
March 2019
Activity 1
Providing credit assistance
Scenario:
Your clients Claudia and Michael have chosen to appoint you as their credit assistance provider.
They have signed and returned your credit proposal.
You are now preparing to lodge a loan proposal on their behalf.
Download: The client information summary for Claudia and Michael
Using the personal information provided in the client information summary and any other
information you select (note: Be sure to identify the source of that information).
1. Complete the LMI serviceability calculations. Create a PDF copy of the report. Upload the
PDF when you submit your documents for the Module 2 Assessment.
Serviceability calculator: Genworth
https://www.genworth.com.au/serviceabilitycalculator-prd/201703.aspx
Note: Use this household expenditure measure (HEM) calculator, if required:
https://www.homeloanexperts.com.au/mortgage-calculators/living-expenses-calculator/
2. Calculate the LMI premium for the proposed transaction.
LMI premium calculator: Genworth
https://www.genworth.com.au/lender/lmi-tools/lmi-premium-estimator/
3. Complete the ‘Packaging an LMI Proposal’ quiz at:
https://www.genworth.com.au/test-articulate/Packaging-an-LMI-Proposal/story_html5.html
and then list the key transaction documents, in the correct category:
Submit to LMI
Provider:
Keep on file: Dispose:
March 2019
P a g e | 6
4. Review the Case Study -Mortgage Lending Fraud at AUSTRAC:
http://austrac.gov.au/case-studies/fraud-finance-gambling-addiction
Consider the Suspicious Matter Reporting requirements of AUSTRAC:
http://austrac.gov.au/suspicious-matter-reports-smrs
Outline six (6) circumstances that would motivate you to file a suspicious matter report
with AUSTRAC, as follows:
Circumstance: Regulation: Action to be
Taken:
March 2019
4. Review the Case Study -Mortgage Lending Fraud at AUSTRAC:
http://austrac.gov.au/case-studies/fraud-finance-gambling-addiction
Consider the Suspicious Matter Reporting requirements of AUSTRAC:
http://austrac.gov.au/suspicious-matter-reports-smrs
Outline six (6) circumstances that would motivate you to file a suspicious matter report
with AUSTRAC, as follows:
Circumstance: Regulation: Action to be
Taken:
March 2019
P a g e | 7
Activity 2
Effective communication
Background:
Effective communication is a fundamental part of being a successful mortgage broker. Your
ability to relay information, understand the needs and objectives of your clients and offer the
right products and support is extremely important to the sustainability of your work.
The ability to handle difficult conversations is an important part of being a successful mortgage
broker. Some difficult conversations may include:
A client not having a good credit history and being very uncomfortable talking about their
finances
An ESL (English as a second language) client who might find it difficult to understand and
communicate important information
A client asking you to change some of the data on their loan application
A client yelling at you and blaming you for a non-offer
1. What effective communication strategies can you apply to each situation? How can your
understanding of emotional intelligence capabilities assist you in these interactions?
Record your responses to each situation, demonstrating the communication skills you
have identified. Your recording needs to be 3 – 7 minutes in length.
Upload the recorded audio file when you submit the rest of the documents for this
assessment.
In case of the client with good credit history but uncomfortable to talk regarding the
finance is to learn the body language and understanding the words not spoken by
her/him
In case of the client who has English as 2nd language, the advisor shall choose a
translator who is able to understand both client’s language as well as English so
that the advise can be translated into client’s language
In case the client wants to change some data on the application, the advisor shall
incorporate the changes to maximum possible extent. Further, in case of any
changes in risks and returns with regard to changes in data must be communicated
to the client.
In case of client blaming on advisor, the advisor shall master the art of listening that
will help the client to feel as heard. After listening everything the advisor shall
discuss with the client if in any way he/she can compensate the same.
2. In addition to verbal communication, non-verbal communication plays a significant role in
conveying a message. What elements of non-verbal communication should you pay
attention to during your discussions with clients?March 2019
Activity 2
Effective communication
Background:
Effective communication is a fundamental part of being a successful mortgage broker. Your
ability to relay information, understand the needs and objectives of your clients and offer the
right products and support is extremely important to the sustainability of your work.
The ability to handle difficult conversations is an important part of being a successful mortgage
broker. Some difficult conversations may include:
A client not having a good credit history and being very uncomfortable talking about their
finances
An ESL (English as a second language) client who might find it difficult to understand and
communicate important information
A client asking you to change some of the data on their loan application
A client yelling at you and blaming you for a non-offer
1. What effective communication strategies can you apply to each situation? How can your
understanding of emotional intelligence capabilities assist you in these interactions?
Record your responses to each situation, demonstrating the communication skills you
have identified. Your recording needs to be 3 – 7 minutes in length.
Upload the recorded audio file when you submit the rest of the documents for this
assessment.
In case of the client with good credit history but uncomfortable to talk regarding the
finance is to learn the body language and understanding the words not spoken by
her/him
In case of the client who has English as 2nd language, the advisor shall choose a
translator who is able to understand both client’s language as well as English so
that the advise can be translated into client’s language
In case the client wants to change some data on the application, the advisor shall
incorporate the changes to maximum possible extent. Further, in case of any
changes in risks and returns with regard to changes in data must be communicated
to the client.
In case of client blaming on advisor, the advisor shall master the art of listening that
will help the client to feel as heard. After listening everything the advisor shall
discuss with the client if in any way he/she can compensate the same.
2. In addition to verbal communication, non-verbal communication plays a significant role in
conveying a message. What elements of non-verbal communication should you pay
attention to during your discussions with clients?March 2019
P a g e | 8
Listen – it is crucial to provide the opportunity to the client to voice all the opinions,
grievances and concerns. Nodding, paying attention and actively listening will
provide a feel to the clients that they have compassionate professional to deal with
Stay calm – projecting the image of person in charge who does not fold under
pressure is important to put the mind of the client at ease. If the advisor is calm, it
will assist the client to ease their anxiety.
3. Relaying product information to clients can often require the broker to translate the
specifics of the product in a simple and straightforward way.
- Product A: fixed vs variable
- Product B: interest only loan
- Product C: low doc vs full doc
Explain the technical specifics of the products and services above, so the customer clearly
understands it. Explain when products A and B would be appropriate to use. Explain the
disadvantages of low doc vs full doc.
Record your response as if you are talking to a client explaining the different products above. Be
sure to clearly articulate the necessary information in appropriate language. Upload the recorded
audio file when you submit the rest of the documents for this assessment.
Product A: Fixed vs variable – irrespective of the interest rates the fixed rate of interest for
loan are not suitable for everyone. However the acceptance of fixed or variable loan shall be
considered from the advantages and disadvantages of types of loans. Main advantage of the
fixed rate loan is it provides certainty of cash flow. Hence the borrower knows that how much
he / she have to repay over the fixed term period. On the other hand, the major disadvantage of
the fixed rate loan is that it is inflexible and at times can be more expensive if the contract is
broken. Under the variable interest rate the rate of interest moves with the changes in the
market rate of interest. It means the rate of interest may fall or rise over the loan term. Main
advantage of variable payment is extra payment is generally allowed without any extra cost that
saves the interest. Further it is comparatively easier as well as cheaper in switching the loans if
any better deal is find out. However the disadvantage associated with the variable loan payment
is that it makes the budget preparation difficult regarding certainty as repayments may increase
with the changes in the interest rate.
Product B: interest only loan – interest only loan repayments begin with payment of low
amount as the borrower just pay off interest only. In the long run interest is to be paid at higher
rate however, for the right type of borrower interest only loan is a good option.
Product C: Low doc vs full doc – low doc loans are considered as easier for qualifying as it
requires les documentation for establishing the prove that prospective borrower will repay the
loan. Main disadvantage of low doc is that it comes with the strict conditions like LMI, loan
mortgage insurance. On the other hand, full doc loan is the lender’s documentation that requires
March 2019
Listen – it is crucial to provide the opportunity to the client to voice all the opinions,
grievances and concerns. Nodding, paying attention and actively listening will
provide a feel to the clients that they have compassionate professional to deal with
Stay calm – projecting the image of person in charge who does not fold under
pressure is important to put the mind of the client at ease. If the advisor is calm, it
will assist the client to ease their anxiety.
3. Relaying product information to clients can often require the broker to translate the
specifics of the product in a simple and straightforward way.
- Product A: fixed vs variable
- Product B: interest only loan
- Product C: low doc vs full doc
Explain the technical specifics of the products and services above, so the customer clearly
understands it. Explain when products A and B would be appropriate to use. Explain the
disadvantages of low doc vs full doc.
Record your response as if you are talking to a client explaining the different products above. Be
sure to clearly articulate the necessary information in appropriate language. Upload the recorded
audio file when you submit the rest of the documents for this assessment.
Product A: Fixed vs variable – irrespective of the interest rates the fixed rate of interest for
loan are not suitable for everyone. However the acceptance of fixed or variable loan shall be
considered from the advantages and disadvantages of types of loans. Main advantage of the
fixed rate loan is it provides certainty of cash flow. Hence the borrower knows that how much
he / she have to repay over the fixed term period. On the other hand, the major disadvantage of
the fixed rate loan is that it is inflexible and at times can be more expensive if the contract is
broken. Under the variable interest rate the rate of interest moves with the changes in the
market rate of interest. It means the rate of interest may fall or rise over the loan term. Main
advantage of variable payment is extra payment is generally allowed without any extra cost that
saves the interest. Further it is comparatively easier as well as cheaper in switching the loans if
any better deal is find out. However the disadvantage associated with the variable loan payment
is that it makes the budget preparation difficult regarding certainty as repayments may increase
with the changes in the interest rate.
Product B: interest only loan – interest only loan repayments begin with payment of low
amount as the borrower just pay off interest only. In the long run interest is to be paid at higher
rate however, for the right type of borrower interest only loan is a good option.
Product C: Low doc vs full doc – low doc loans are considered as easier for qualifying as it
requires les documentation for establishing the prove that prospective borrower will repay the
loan. Main disadvantage of low doc is that it comes with the strict conditions like LMI, loan
mortgage insurance. On the other hand, full doc loan is the lender’s documentation that requires
March 2019
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