Finance and Mortgage Broking: Client Interactions and Loan Processes

This assignment focuses on practical application of finance and mortgage broking principles through a series of role-playing scenarios. The content includes simulated interactions between a mortgage broker and clients, covering key stages of the loan process. Role plays encompass client interviews to assess needs and explain loan options, presenting loan offers with varying interest rates and repayment terms, discussing loan application outcomes (including rejection and revisions), and debriefing the loan process with feedback. The assignment also explores interactions with colleagues and managers, as well as other stakeholders. The scenarios cover topics such as fixed vs. variable interest rates, loan product comparisons, pre-payment options, required documentation, and the importance of client communication throughout the lending process. The assignment aims to provide a comprehensive understanding of the mortgage broking process, from initial client contact to loan approval and beyond. The document showcases real-world scenarios that a mortgage broker may face. The role plays highlight the importance of clear communication, understanding client needs, and navigating the complexities of loan applications and approvals.

FINANCE
AND
MORTGAGE
BROKING

Contents
TASK...............................................................................................................................................2
Role Play 1: Interviewing the Client:...............................................................................................2
Role Play 2: Presenting the loan offer to Jennifer and Philip:.........................................................4
Role Play 3: Loan Application Outcome:........................................................................................4
Role Play 4: Loan process debrief and feedback:............................................................................4
Role Play 5: Colleague and manager interactions:..........................................................................4
Role Play 6: Other stakeholder interactions:...................................................................................4
REFERENCES................................................................................................................................5

TASK
Role Play 1: Interviewing the Client:
The interview has been conducted between the Broker named as Jack and the client names as
Jennifer and Phillip and they both came to the office of Broker to undertake the meeting.
Jack: Hello Sir, please have a seat.
Phillip: Hello Thanks!
Jack: How can I help you Sir?
Phillip: Sir we both are looking for the housing loan from the bank. But we don’t have an idea
that what should be the process for getting the loan. Can you please explain to us in detail about
all the process?
Jack: Ok sir, first off all I will inform you regarding the role of mine in loan lending process. Sir
I am broker and part of the consultancy firm engaged in providing the finance to the needy
people by proper guiding them regarding the whole process. For providing such services we
charge certain amount of fees against the services we offered to you!!
Phillip: Can you please elaborate that for how much time you are under the profession and what
best you can do for us.
Jack: Sir as you know that we are offering the broker services and we are in the business for 10
years. This business has been started to ensure that clients does not engage in unnecessary paper
work as they do not have the idea that from where they have to start from in order to get their
loan financed from the lending institutions.
Phillip: What is your role in the lending process of the financial institution?
Jack: The role of ours will be that we first of all carry out the research in the market in order to
determine or source a mortgage suitable for the borrowers. We collect all the relevant document
that are being required as supporting documents in loan application process such as bank
statements, pay slip, identification and address proof etc. Ensure that the processing fees charged
by the bank on loan will be addressed to the client and so on.
Jennifer: What about the charges we have to pay to you for all such services?
Jack: Mam, the price we charge is fixed that is $200. Sir anything else would you like to know
about the loan?

Phillip: Is the rate of interest fixed or flexible for our loan and what will be the difference
between the two rates.
Jack: Sir I will provide you the difference between both types of home loans which are
mentioned in this book:
 In fixed rate of interest loan, the rate has been fixed throughout the tenure of the loan. It
does not get changed with the change in repo or reverse repo rate.
 On the other hand, the floating interest rate changes with the changes in reverse repo and
repo rate and the monthly instalment may increase or decrease with the change in such
rates.
Phillip: The documents you needed for processing of the loan application has been send by me
on your mail.
Jack: Wait sir, let me check… Received, I will update you on timely basis regarding the loan
application. Now I will submit these documents to the lending institution. I will arrange all the
documents and will proceed further. You can contact me anytime in case there is any problem. I
will be in contact with you every time.
Phillip: Ok. Thank you very much.
Role Play 2: Presenting the loan offer to Jennifer and Philip:
Again the conversation has been takes place between Jack and Phillip & Jennifer regarding the
loan proposal at their home.
Jack: Hello sir, how are you?
Phillip: Sir I am fine… Thank you!!!
Phillip: Please explain about the range of product available to us in obtaining the loan.
Jack: Ok sir, I will provide you the list that contain various types of loan and their applicable
interest rate. Please see to this:
Amount Rate of interest Repayment time
period
Lending Institutions
$ 450000 8.21% 48 Months XYZ Financial Institution
$450000 8.00% 36 Months PQR Financial Services
$ 450000 8.76% 58 Months Accenture Fund Services

Phillip: Any kind of offer that is available to me!!!
Jack: Yes, sir, if you make the pre-payment of the loan in early years then the following two
options will be available to you:
 First one, in this you can have a loan at 10% and can delay the payment of principal for
five years.
 Second, you can make the payment of house in instalments. And withdraw the part
amount of loan after 4 years. Then the payment of principle with start after 5 years.
According to me, the second option suits you the most and my personal advice that you
should go for the second one.
Phillip: Ok. As per our requirement we need the housing loan having fixed rate of interest.
Jack: Sir as per the requirement of yours as you need to purchase the residential house property.
You must have obtained the fixed loan rate of interest as you both are the salaried employees and
not having any type of business as well. Therefore, you both can obtain a housing loan having
fixed rate of interest. The benefits for the same is that the rate of interest will remain the fixed
irrespective of the changes that has been taken place in the market rate of interest.
Jack: Now you are feel free to ask me the question you have in your mind regarding the options
and their benefits I am offering you in
Phillip: I want to ask you that if in between the years I want to make prepayment of the loan that
I have obtained then there would be any charges for the same that I used to pay to lending
institution.
Jack: Sir if you make the prepayment of the loan you need to pay the interest cost that has been
effective on the date of repayment. Because sir there is the interest loss to financial institution on
the loan that are being granted by them to you. Therefore, if the closing your loan account before
its maturity then you have to pay outstanding principle amount with relevant interest charges to
bank of pre closure of the loan.
Phillip: Ok, now I am very clear regarding the process, the products that are being offered, tenure
of various types of loan and what are the charges if such loan is closed before the schedule.
Jack: Sir I need the sign of yours in an agreement that so that we can proceed with the loan
product you have selected along with the terms and condition & product disclosure requirement
Phillip: Ya, sure. Please provide me the form so that I will sign the same and the product I have
selected will be the housing loan having fixed rate of interest @8 % per annum to be repaid in 36

months or the three years. The amount of loan I need to obtain in order to purchase my 2-
bedroom apartment is expected to be $ 450000.
Jack: Now sir as you have sign the approval form along with consent form I would like to inform
you’re that regarding the steps the lending institution will follow after such loan application is
being submitted to them.
 Firstly, the bank will process the application and ensure that all the documents attached
by you are being correct or not. For e.g. your identity proof, address proof, your bank
details, bank statement and so on.
 Secondly the bank personnel will conduct the physical verification on the office of yours
in order to ensure that whether you and your wife actual working in the office of which
you have submitted your documents in the bank or not. The purpose for the same is that
to check your creditability to repay their debts or not.
 In the next step the representative will check that what are the existing loans outstanding
and what assets they possess.
 The representatives will also ensure that whether the client in filling their income tax
return on regular course of interval or not. Since return are the primary document that are
being considered by the bank representatives in sanctioning of the loan.
Phillip: Ok, thanks a lot Jack for such an information and it was nice meeting with you and I am
very happy to consider you as are broker for the firm.
Jack: Sir I am here to serve you and providing you the vest I can so that you can advise some
other person also who is intending to get his loan to be sanctioned as soon as possible.
Role Play 3: Loan Application Outcome:
The below is the conversion between the broker John and the client Wendy Evans regarding the
outcome of their loan application they have submitted to the lender institution.
Call 1:
John: hi Wendy how are you? I made the call to you to inform you that that their investment
home loan request has been rejected by the bank. The XYZ bank will sanctioned the loan but the
lender mortgage insurance provides would not accept it because of its location and loan to value
ratio is also to be the 90%. In this situation we can do one thing that to revise the application that
we have submitted to the XYZ bank. The additional ground we have to provide them is that to

provide additional security in the form of investment you had made in equity shares and to
provide them additional security of the home by mortgaging the same
Wendy: Ok therefore you can revise our proposal that has been submitted at the beginning to the
XYZ bank so that our investment home loan gets approved.
Call 2:
John: hi Belinda I am john. I am calling on behalf of your client named as Wendy. The reason
for my call is that their loan application they have made in XYZ are being rejected by the bank
and I think we need to revise the same in the more appropriate manner so that such application
has been accepted and loan will be granted to them. Therefore, I need to ask you that whether we
can add the investment property’s as well as the supporting document in such loan application so
that such application will gets approved. Not only this we can also provide them additional
security in the form of papers which will bring loan to value ratio to 80% and there could be the
savings in the hands of Wendy of $10000.
Belinda: As per your explanation I think the loan gets approved by the XYZ bank if documents
are being revised and additional security in the form of investment made in the stock market and
property are being made available to the bank.
Call 3:
John: hi Wendy this is john. I am calling you to inform you that your revised loan application
that we have submitted has been approved by the XYZ bank. The loan application has been
approved subject to submission of certain documents such as building insurance letter of both the
properties and this in only the requirement that are being outlines in their credit contract.
Wendy: Thank you so much John for the efforts you have made in sanctioning such investment
home loan to me. I am very excited and yes sure I will submit the relevant document that you
require for the timely submission for such loan. And will provide you in physical in the evening
tonight so that you submit them in XYZ Bank tomorrow.
Call 4:
John: hi Belinda. How are you? I had called you to inform you that the loan of your client has
been in progress and the loan contracts has been signed and the contract has been sent back to the
lender and all the documents we have submitted are in order.

Belinda: ok. that was good that the loan has been sanctioned in the smooth manner and the
process gets started for the sanctioning of the loan.
Role Play 4: Loan process debrief and feedback:
This is the conversation between two people in context of the purchase of loan services. The role
plays are discussed below;
Broker- Hello, this side Abhishek, am I speaking to Ravi
Ravi- yes this side Ravi who are you
Broker- This is the call regarding the loan which u have taken from our bank.
Ravi- Yes, I have taken the loan for purchasing the residential property.
Broker- I would like to tell you that there are few formalities which need to made at the urgent
basis in order to conduct this process successfully.
Ravi- Yes, may I know what are the various formalities which I can complete over here in order
to process the transaction and other formalities.
Broker- I wanted to know that is your Aadhar card linked to the right mobile number which you
are using in the bank.
Ravi- Yes it is the same number which is registered within the bank accounts.
Broker- I would also ask you that whether the whole process of the loan was in a systematic
approach. I wanted to take a feedback regarding the whole process of the purchase of the
loan.
Ravi- Yes there were few problems while submitting my documents to the staff of the bank.
Broker- what was the Problem my I know
Ravi- there was problem in the server issues which was very trouble shooting for me.
Broker- Okay we will make sure that this will not arise next time.
Ravi- the another feedback I would like to give that the process was time consigning as I need
the loan on urgent basis which was very necessary for me. The staff members were not
responding to my calls and messages at times which was delaying in the process of the loan.
Broker- I understand sir, but this is the issues which will be considered for the next time and I
will try that you do not have to face same issue.
Ravi- okay
Broker- Thank your sir, for cooperating and I think you have a great experience with our
services.

Conversation 2
Broker- Hello this side XYZ, may I speak to Alice
Alice- Yes, please
Broker- you have used the loan purchase services from our bank
Alice- YES
Broker- I would like to know your valuable feedback with our services
Alice- Everything was fine and it was a great experience with the banking system. I had faced
issues but your staff members have supported in everything which have made the purchase
of loan transparent.
Broker- Thank You Ma’am, if there is anything which we would have to change you may let us
know.
Alice- yes sure.
Role Play 5: Colleague and manager interactions:
Call 1:
Manager: Hello. Yes, tell me what are the issues you are facing related to work these days and
suggest if you are having some suggestions with you for solving those conflicts as well.
Colleague: Thank you for your precious time sir. I have been facing issues regarding excessive
workload which is conflicting my priorities and I keep my work at its priority but in past few
days I have observed that the management regarding work is not that apt and accurate any
more. Thus I want that the excessive workload must be distributed among other coworkers
in the company.
Manager: Alright. I understand, since you have been one of the most hard-working employee of
this company I consider your issues and problems at foremost priority thus I will look into
the matter.
Colleague: Thank you sir for your precious time. I was having a recommendation if it could be
considered which is that the upcoming days when I would be on annual leave someone
could close the call and have a meeting on my behalf so that the business doesn't face any
loss.
Manager: Alright. Why don't you have a word with your respective colleague regarding this
matter on your own.

Colleague: Ok sir. I will have a discussion with them as well.
Meeting 2:
Colleague: Hello. Thank you for taking out time for this meeting. I had some important areas to
have and carry out discussion over.
Volunteer: Not a problem. Tell me what is it.
Colleague: I am struggling with excessive workload which hampers my priorities as well and I
want assistance and support from you for handling it at peak levels.
Volunteer: Sure. I can help you with it but I also needed one help from you.
Colleague: Yes, tell me what is it I can help you with.
Volunteer: As you are aware of the Continuous professional development points for the year I
am looking forward to two workshops which would help me in improving the role and
satisfying the points as well.
Colleague: Oh sure. I will help you with that. Not an issue.
Volunteer: Thank you so much.
Meeting 3:
Colleague: Hello. I hope you all are doing good. There is a very important announcement which
is to be made regarding work. It has been modified in last few days that the target for the
following month regarding loan application has increased from 8 to 10 per month.
Team members: Considering all the alterations being made. We are keen to know what would be
the advantages associated with the modifications made.
Colleague: It is helpful in achieving points as well as growth of your career. Also, respective
training would be provided to you for understanding moods, preferences of the customer and
how they shall be tackled.
Team members: Ok sir. We will give our best. Thank you for the guidance.
Role Play 6: Other stakeholder interactions:
Phone Call 1 – Real Estate Office
Mortgage Broker: Hello.
Local real estate office: Hey, who are you speaking.
Mortgage Broker: I am your mortgage broker. I will describe you about our business. This is a
broking firm where your will get to know about the opportunities to invest in the real estate.

Here, your will get to know about the loan details and I am the guide for you to go through
this process. I have a certain amount of the brokerage commission fixed.
Local real estate office: Okay.
Mortgage Broker: The reason for this call is to make you understand about the concept of
mortgage broking. Mortgage broking is a firm which lends money on the security of real
estate, whether the money is of second person or third person, these signs indicates that a
firm is a mortgage broking firm who carries the business on the dealings of brokerage.
Local real estate office: Okay, thank you for your guidance.
Mortgage Broker: Now, I have called you to discuss about our working together and how it can
gain benefit to you as well as to me also. I will help you to decide the lender and will act as
the mediator. You will not know the lender personal but the control of broking will help you
incline the trust to us and your contract will enable us to trust you.
Local real estate office: Okay. Can you tell me about the type of product and service you offer?
Mortgage Broker: Yes, sure.
Mortgage Broker: Our firm provides us the financial services of stock, real estate, credit, forex
market, insurance and many others. Can I know your interests in which you want to invest?
Local real estate office: I want to invest in the real estate market.
Mortgage Broker: I will act as the intermediary between you and the securities exchange.
Local real estate office: Okay. I will tell you afterwards about my decision of investing.
Mortgage Broker: Okay, sure. I will help you in volunteering about more detain and advise your
correctly. Do let me know about your decision.
Local real estate office: okay.
Mortgage Broker: Phone call ended.
Phone Call 2: New client from referral source
Mortgage Broker: Hello.
New referral source: Hey, who are you speaking.
Mortgage Broker: I am your mortgage broker. I will describe you about our business. This is a
broking firm where your will get to know about the opportunities to invest in the real estate.
New referral source: Okay.
Mortgage Broker: I hope you like the services that are being offered by me and I hope that you
will refer someone else also so that we can provide such services to them in an appropriate
manner.

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