FNSFMB502 Present Broking Options
Added on 2021-04-16
10 Pages1951 Words52 Views
Finance
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Questions Identify and develop broking options for clients with complex needsFNSFMB502Present broking options to client with complex needsFNSFMB503Implement complex loan structuresFNSFMB504
Scenario 1You are a Mortgage Broker for Careful Financial Services (CFF) Fedtown and have been contacted by a prospective new client Tony Mason.You have arranged to meet with Tony next week to discuss his requirements further.Over the phone you have found out the following information:Client’s names: Anthony and Lyn MasonTony is a partner in T& L Accounting Partnership, which has been operating successfully for 5 years.The Masons have recently sold their existing house for $650,000 and are purchasing a new property for $1,000,000.Their mortgage for $50,000 on their current property is held with Whatbank, Thistown.Tony finds that July to October is very busy and the business overdraft of $15,000 is not enough during that time.He currently leases the office that the business is located in but has been approached by the owner to see if he is interested in purchasing it.Tony mentioned that they will soon need to update the computer equipment in the office to cope with the workload and changes in software that have occurred.He is also concerned about rising interest rates.Question 1(FNSFMB502 E1.1, 2.1) Using the information provided above identify 5 needs that the Masons have and complete the below table.NeedDetailsNeed for purchasing a newpropertyThey are need of purchasing a new propertythat has a current value of $1,000,000Paying off their currentmortgage amountThey have an existing mortgage of $50,000 withWhat bank This Town and the Masons have theintention of paying off the mortgage as soon aspossible. Increasing their amount ofoverdraft during the time ofpeak business seasonThey currently have an overdraft amount of$15,000 but during the months of July toOctober they would be requiring additionaloverdraft amount in order to continue theirbusiness as the workload will be higher during
this peak season. Purchasing the office whichthey currently use in theform of a leaseThey want to purchase the office where theyoperate and which is currently on lease in orderto reduce their amount of liabilities. Upgrading their computerequipment in order to copewith the workload and eventhinking about the rates ofinterest. The Masons need to change their computerequipment so that they can perform theirbusiness in an effective manner according tothe changes in the working environment andtime. Question 2(FNSFMB502 E 1.1, 2.1FNSFMB503 1.1)In your own words provide 2 examples of closed questions and 2 examples of open questions you will ask at the interview to ascertain further information on the client’s needs/objectives.Answer: The two close ended questions are: Q1. Are willing to take risk in order to gain additional income benefit? YesNo May Be No IdeaQ2. Are willing you take a loan if there is a change in the rate of interest? YesNo May Be No IdeaThe open ended questions are as follows: Q1. Do you think changes in the rate of interest can hamper your plan of taking loan and expanding your business? Q2. What is the amount you are ready to pay as down payment for the purchase of the new property and the total amount you desire from the bank? Question 3(FNSFMB502 E 2.1 FNSFMB504E2.2)Identify the four types of documentation you would need to obtain for the partnership to:Identify the borrower and his/her/its representativesClarify the capacity and authority to borrow and pledge securityVerify the ability to repay the amount applied for.Answer: The four types of documents that is required are: Proof of identity of the applicant (Passport, Drivers Licence etc) Address Proof
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