FNS40815 Certificate IV - FNSFMB403 Broking Options Case Study

This FNSFMB403 Certificate IV in Finance and Mortgage Broking case study examines a scenario where a lender inadequately communicated loan details and caused delays, leading to client complaints. The analysis assesses the lender's performance in presenting suitable options and identifies communication gaps. It proposes effective negotiation strategies to settle client complaints, including monetary compensation and reimbursement of legal fees. Furthermore, it outlines implementation actions to prevent similar issues, emphasizing clear communication between brokers, lenders, and clients, along with conditional loan approvals and alternative fund access methods. The case study highlights the importance of transparent communication and proactive problem-solving in the finance and mortgage broking industry. Desklib provides access to this and other solved assignments for students.

F NS4 0 8 15 C er ti fi c at e IV i n F IN A N CE & MOR TG A GE
B R OKIN G
FNSFMB403 Present broking options to
client
Assessment 2 -
Performance

S ect i on 1 – Re vie w cas e
S tu dy Requirements
Download and review the Delayed Settlement Case Study located in the
Assessment
Resources folder.
Se ct i on 2 – A ss ess A cti on R equ i re d
Now complete each of the following steps:
1. Assess whether the lender correctly identified and documented relevant product
information that met the client’s needs, and presented suitable options to the
clients at a level of their understanding
In the given case study the lender is able to assess and provide the financial products as per
the need and preferences of the customers. After proper analysis of the demand of the couples,
the lender has suggested them a new product include a home loan with a debit card facility.
But, it is also identified from the case study that lender is unable to provide proper details of the
products such as detail about difference between legal documentation fees and application fees
(Mohanan, 2019). Furthermore, the lack of communication of lender regarding the reason of
delay in the approval and delivery of couple loan fund has created lots of confusion. The impact
of such lack of communication also trouble couple. So, on this basis it can be state that lender
has presented suitable options to the client, but they fail to clearly communicate the loan
process details to couple.
2. How would you negotiate effectively and gain commitment from clients to settle the
complaint?
In order to resolve the issue and effectively negotiate with the couple, the broker need to use
their own judgement and speak responsibly. If the broker do proper research on the issues of
the clients and communicate the reason of delay in the approval and delivery of their products,
then it might be chance that couple will settle the complaint. Furthermore, in order to negotiate
and settle the complaint, it is advisable to the broker that they have to provide extra benefits
along with the compensation of loss because of delay in settlement of loan to the couples. This
must be monetary compensation for delay in settlement, late receipt of debit card along with
unable to access loan funds (Mondal and Johari, 2021). Along with this, one more negotiation option
that can agreed the couple to settle the compliant is reimbursement of legal proceeding fees.

3. Discuss and document what implementation actions you would put in place in
anticipation of the loan application proceeding.
After analysing both the party position such as couples and financial service providers, it is
analysed that the delay in settlement is not from the clients side but it is from the postal
service provider side. The implementation actions recommended putting in place regarding
loan application proceedings is spoke up with the client and lenders. In case if any issues
arises the broker have to solve it. Beside this, the couple also have to clearly communicate
their issues with the broker so that the broker can transfer it to the lender and analyse the
reason of delay. Along with this, the another implementation action that need to be taken is
conditional approval and pre-approval. It means broker have to communicate all the detail
mentioned on the websites with the clients such as detail regarding application fees and
legal documentation fees. Further, the broker have to communicate with the couple that
they should withdraw their loan funds through internet banking and direct request from
lender in case if there is any delay in the receipt of debit card of couples (Varma and
Agarwalla, 2020). Thus, effective communication is one of the best implementation action
which solve the issue of delay in loan settlement.

REFERENCES
Books and Journals
Mohanan, P. A., 2019. Client driven trading strategies: A practical modeling in the context of financial
derivatives market. Serbian Journal of Management. 14(1). pp.123-144.
Mondal, I. and Johari, R., 2021. Longitudinal Analysis of Investment Pattern: A Study of Alankit Limited
Clients. Abhigyan. 38(4). pp.19-30.
Varma, J. R. and Agarwalla, S. K., 2020. Prime Broking Default at the National Stock Exchange. Indian
Institute of Management Ahmedabad.