DIPMB1 Written Assignment: Case Studies and Lending Process Analysis

This document presents a comprehensive solution to a written assignment focused on the lending process within the context of financial services. The assignment is structured around three case studies involving potential borrowers, analyzing their financial situations, and evaluating their loan applications. It covers key aspects such as client information gathering, assessing borrowing options, and conducting reasonable inquiries. Furthermore, the document delves into responsible lending obligations, self-employed considerations, and strategies for advising clients. The assignment also addresses financial services legislation, industry codes of practice, and principles of professional practice, providing a holistic view of the lending landscape and the responsibilities of financial professionals. The assignment is designed to demonstrate competency in preparing loan applications, identifying client needs, presenting broking options, and complying with financial services regulations.

Written
Industry Knowledge and the Lending Process
(DIPMB1_AS_v3A1)
Student identification (student to complete)
Please complete the fields shaded grey.
Written overall result (assessor to complete)
First submission Not yet demonstrated
Resubmission (if applicable) Not applicable
Result summary (assessor to complete)
Section 1: Case study 1 — Philip and Jennifer Brown First submission Resubmission (if required)
Task 1 — Key terms, gathering and documenting client information Not yet demonstrated Not applicable
Task 2 — Assessing the clients’ situation Not yet demonstrated Not applicable
Task 3 — Borrowing options Not yet demonstrated Not applicable
Task 4 — Reasonable enquiries Not yet demonstrated Not applicable
Task 5 — First Home Owners Grant and home buyer assistance schemes Not yet demonstrated Not applicable
Task 6 — Professional network and loan settlement process Not yet demonstrated Not applicable
Task 7 — Interest rates Not yet demonstrated Not applicable
Section 2: Case study 2 — Richard and
Pauline Jackson
Task 8 — Responsible lending obligations Not yet demonstrated Not applicable
Task 9 — Self-employed special considerations Not yet demonstrated Not applicable
Task 10 — Advising on strategies Not yet demonstrated Not applicable
Task 11 — Impact of credit history Not yet demonstrated Not applicable
Task 12 — Dispute resolution Not yet demonstrated Not applicable
Section 3: Case study 3 — Mary Jane
Smith
Task 13 — Prepare and check a loan application Not yet demonstrated Not applicable
DIPMB1_AS_v3A1

Section 4: Working in financial services
Task 14 — Financial services legislation and industry codes of practice Not yet demonstrated Not applicable
Task 15 — Design and produce a document Not yet demonstrated Not applicable
Task 16 — Applying principles of professional practice to work in the financial
services industry Not yet demonstrated Not applicable

Please note:To pass this written you will need to be assessed as DEMONSTRATED in
either your first submission or your resubmission in all tasks above.
Task feedback
Please refer to the assessor’s detailed feedback found at the end of each task so that you know what
to do for any tasks you need to resubmit.

Before you begin
Read everything in this document before you start your written for Industry Knowledge and the
Lending Process (DIPMB1v3) subject.
About this document
This document is the written — half of the overall Written and Oral
This document includes the following parts:
•Instructions for com pleting and submitting this
•Section 1: Case study 1 — Philip and Jennifer Brown
A case study with a series of short-answer questions:
– Task 1 — Key terms, gathering and documenting client information
– Task 2 — Assessing the clients’ situation
– Task 3 — Borrowing options
– Task 4 — Reasonable enquiries
– Task 5 — First Home Owners Grant and home buyer assistance schemes
– Task 6 —Professional network and loan settlement process
– Task 7 — Interest rates
•Section 2: Case study 2 — Richard and Pauline Jackson
A case study and a series of short-answer questions:
– Task 8 — Responsible lending obligations
– Task 9 — Self-employed special considerations
– Task 10 — Advising on strategies
– Task 11 — Impact of credit history
– Task 12 — Dispute resolution
•Section 3: Case study 3 — Mary Jane Smith
A case study and a series of short-answer questions:
– Task 13 — Prepare and check a loan application
•Section 4: Working in financial services
– Task 14 — Financial services legislation and industry codes of practice
– Task 15 — Design and produce a document
– Task 16 — Applying principles of professional practice to work in the financial services industry
•Appendix 1:Key terms
•Appendix 2:Client information collection tool/Fact finder
•Appendix 3:Loan application.
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 written within your enrolment period. Your study plan is in the KapLearn Industry
Knowledge and the Lending Process (DIPMB1v3) subject room.

Instructions for completing and submitting the
written
Completing the written
Saving your work
Download this document to your desktop, type your answers in the spaces provided and save your work
regularly.
• Use the template provided, as other formats will not be accepted for these .
• Name your file as follows: Studentnumber SubjectCode versionnumber Submissionnumber
(e.g. 12345678_DIPMB1_AS_v3A1_Submission1).
• Include your student ID on the first page of the .
Before you submit your work, please do a spell check and proofread your work to ensure that everything
is clear and unambiguous.
Word count
The word count shown with each question is indicative only. You will not be penalised for exceeding
the suggested word count. Please do not include additional information which is outside the scope of
the question.
Additional research
When completing the ‘Client information collection tool’ in Appendix 2, assumptions are permitted,
although they must not be in conflict with the information provided in the Case study.
Throughout the you will also be required to research additional information from
other organisations in the finance industry to find the right products or services to meet your
client’s requirements or to calculate any service fees that may be applicable.

Submitting the written
Only Microsoft Office compatible written submitted in the template file will be accepted for
marking by Kaplan Professional Education. You need to save and submit this entire document.
Do not remove any sections of the document.
Do not save your completed as a PDF.
The written must becomp leted before submitting it to Kaplan Professional Education.
Incomplete written will be returned to you unmarked. The written must be
submitted together with the oral . If you do not submit both completed at the
one time it will be returned to you unmarked.
The written marking process
You have 12 weeks from the date of your enrolment in this subject to submit your completed
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 wi l mark your written and oral and return it to you in the Industry Know edge
and the Lending Process (DIPMB1v3) 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 . Failure to do so will mean that your 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 yourcomp leted written and oral.

How your written is graded
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 :
• 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.
You must be deemed to be demonstrated in all assessment items in order to be awarded the units
of competency in this subject, including:
• all of the exam questions
• the written and oral .
‘Not yet demonstrated’ and resubmissions
Should sections of your 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 , so your second assessor can see the instructions that were
originally provided for you.Do not change any comments made by a Kaplan assessor.
Units of competency
This written is your opportunity to demonstrate your competency against these units:
FNSFMB401 Prepare loan application on behalf of finance or mortgage broking clients
FNSFMB402 Identify client needs for broking services
FNSFMB403 Present broking options to client
FNSFMK505 Comply with financial services regulation and industry codes of practice
FNSINC401 Apply principles of professional practice to work in the financial services industry
Note that thewritten and orali assessments re quired to meet the requirements of
the units of competency.
We are here to help
If you have any questions about this written 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.

Section 1: Case study 1 — Philip and Jennifer Brown
Background
Philip and Jennifer Brown are a young couple about to buy their first home. They have been married for
five years and during that time have rented an apartment while saving for their own home.
Following a personal referral from Glenn Brown, Philip’s brother you have already had a first meeting with
Philip and Jennifer to discuss their objectives and needs. They admitted they have little time to do much
research of lenders, have limited knowledge of the loan products available and have approached you to
guide them through the process as they are confused.
During (and subsequent) to your first meeting, Philip and Jennifer have provided the basic information
documents — pay slips, tax returns, bank statements, property details for review/verification. You have
now undertaken your preliminary assessment and need to discuss and present to them the proposal
covering the options and your recommendations. It is important to get the proposal moving quickly,
as the agent has indicated other parties are interested in the property.
They have been looking at properties for the past three months and have found a 10 year old established
apartment that has really caught their eye, although they have some concern over the kitchen which
requires some minor renovations.
They have not paid a deposit at this stage, but the Real Estate Agent has provided some guidance on
additional fees and charges.
Following is a summary of the details of the property they wish to purchase, the couple’s financial and
employment details, and the loan features they require.
The property
Address Unit 1, 92 Seaside Lane Edgartown (Your state)
Purchase price $490,000
Description 2 bedroom, 2 bathroom Strata Title apartment
Agent details Stephanie Jones
Phone [phone]
Mobile [phone]
The couple
Current address Unit 12, 22 Wentworth Lane, Highville, (Your state)
Philip and Jennifer have lived there since March 2012
Home phone [phone]

Funds position
Purchase price $490,000
Clients’ estimate of costs $25,000
Total required $515,000
Loan $440,000 + LMI
Clients’ total contribution (including deposit of $50,000) $75,000
Use fees and charges applicable to your state. If a servicing calculator you are using requires a postcode,
select one that would represent a reasonable suburb/location in your city or state.
Assets
Capital Bank savings account (joint) $78,000
Capital Bank cheque account (joint) $1600
Holden Commodore SS 2007 (Philip) $25,000
Kia Cerato Sport 2015 (Jennifer) $9000
Superannuation — Capital Bank (Philip) $28,000
Superannuation — Capital Bank (Jennifer) $62,000
Household effects (insured value) $40,000
Liabilities
Capital Bank personal loan (Philip) $5,600 (repayments $180 p.m.)
Capital Bank Visa card (Philip) $200 (limit $4,000)
Capital Bank Visa card (Jennifer) $1,600 (limit $5,000)
Payments have always been met on time and any prior loans repaid in terms of contracts. The minimum
monthly commitment on each of the credit cards should be calculated at 3% of the credit limit.
Living expenses
Annual expenditure for living expenses — $33,000.

Employment and income
Philip (date of birth 21/2/87)
Position Team Leader (full time)
Employer ACE Limited 101 City Rd, Westside (Your state)
Phone [phone]
Income (gross) $58,000 p.a. monthly gross income: $4,833
Employer contact Dwayne Johnson, HR Manager
Length of service Since October 2005
Driver’s licence 8855KL
Email [e-mail]
Jennifer (date of birth 8/10/88)
Position Accountant (full time)
Employer Tech city 804 High Street, City East (Your state)
Phone [phone]
Income (gross) $95,000 p.a. monthly gross income: $7,917
Employer contact Bruce Wayne, HR Manager
Length of service Since March 2006
Driver’s licence 17016C
Email [e-mail]
Solicitor’s details
Jones and Co
22 High Street, City East (Your state)
Phone: [phone]
Email: jonesandco.net.au
The solicitor has quoted a fee of $1,500 for the conveyance.

The loan requirements
• 30 year term
• premium option home loan features
• variable interest rate (for this case use 4.5% p.a.)
• LMI to be capitalised
• proposed settlement date — six weeks from exchange of contracts
• ability to make additional payments from time to time without penalty
• fortnightly repayment option
• redraw facility
• funds access via card.
Note:Loan application fee is waived under Special Offer.
Other information
• They have advised that the Real Estate Agents have indicated they need to make a formal offer
within the next 10 days, however they are reluctant to do so until they obtain an approval.
• Jennifer has asked if there are any professional package benefits available because she is an
accountant. However, she did confirm she has not maintained her continuing professional
development.
• Jennifer previously owned and lived in an apartment with her two older sisters when they
attended university but they sold this before she married — they did not make a lot from sale.
• Family plans are five years away.
• They do have plans to take a major overseas trip before family comes along.
• Philip is hoping for a promotion within the next 12 months upon possible retirement of a long-
term employee where he works.
 They have also expressed a concern about the possibility of interest rates increasing.

tasks (student to complete)
Task 1 — Key terms, gathering and documenting client information
1. Complete the ‘Key terms’ (located at the end of the written in Appendix 1).
2. Using the information provided inCase study 1, complete the ‘Client information collection
tool’ (located at the end of the written in Appendix 2).
3. You will also need to complete the Genworth Serviceability Calculator to assess the security,
debt service and borrowing capacity for Jennifer and Phillip Brown. To do this, follow these steps:
(a) Use the details in Case study 1.
(b) Read the Genworth Calculator Supplementary Material Guide available in the
Kaplearn DIPMB1v3 subject room.
(c) Process the loan application using the Genworth Serviceability Calculator accessible here:
<https://www.genworth.com.au/lenders/lmi-tools/serviceability-calculator>.
(d) Once you have processed it, download a copy of the PDF and save it to your desktop.
Note:You will need to upload a copy of this pdf with your written and oral submission.
This will assist your assessor with providing feedback on your written and oral submission.
Note:Any assumptions you make should be listed and should not be in conflict with the case study
information already provided.
Assessor feedback for Task 1 — Key terms, gathering and documenting client information
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable