Mortgage Broking Role Play: Analyzing Client Needs & Loan Options

This document presents a mortgage broking role play scenario involving a broker, Jack, and his clients, Peng and Mia, who are seeking a loan to purchase a property. The role play includes an initial cold call conversation where Jack introduces himself and his services, followed by a meeting to discuss loan policies and options. The clients express their specific needs, including concerns about unstable income and a desire to delay principal payments. Jack offers several loan options with varying interest rates and repayment periods, ultimately suggesting a plan that aligns with the clients' requirements. The scenario covers aspects such as client interaction, loan negotiation, and the broker's commission, providing a practical insight into the mortgage broking process. The document also includes references to relevant books and journals.

Mortage Broking Play

Table of Contents
Role Play 1.......................................................................................................................................3
Role Play 1.......................................................................................................................................4
REFERENCES................................................................................................................................6

Role Play 1
Cold Call conversation among the Broker Jack and his clients Peng and Mia
The ringing of phone..
Jack: Hello, I am Jack. Is this Mr. Peng.
Peng: Yes, How can I help you.
Jack: I am a broker. I deal in providing loan to people according their needs and at minimum
cost. I got to know from some of my resources that you and your wife are in seek of
some loan amount for purchasing a property . If you are interested can you please give
me few minutes of yours.
Peng: Yes, you got the right information, we are looking forward to purchase a house through
loan. If you can provide us with good deal. We are very much interested. But before that
we would like to know something about your firm.
Jack: Sir, I am a broker under HVC Bank. I am in this profession since last 5 years and can
provide you best loan amount at interesting offers with flexible rules. It is important to
have broker to avail loan as they can we can provide best offer and the process of taking
loan will also become easy. You would not have to get jumbled in many formalities as
they all will be settled by us only.
Peng: OK Sir, I am interested. Could you please elaborate your loan policies.
Jack: Thank you. Sir. Can I have some information about you so that is can provide you with
best offer.
Peng: My wife Mia and I, both are from Australia and are residing in Taiwan and has got the
status of permanent resident. We are running a small bakery over here along with our
jobs and are planning to purchase our first property
Jack: OK sir, what size of property would you like to have.
Peng: See, we are planning to have a one bedroom condominium which was built 6 months ago.
But we are also planning to have a baby in near future, so we are thinking to have a large
apartment so as to satisfy our needs.
Jack: According to me, you should prefer an apartment, so that you can satisy your future needs
as well. Do you have any savings to support your purchase?
Mia: Yes, we have saved around $ 95000 for purchasing the Condominium. We would like to
use this amount for purchasing it.

Jack: Mam, I found some sort of disturbance in your tone. Is their any other thing that you want
to tell me or I should be knowing for selecting loan plan for you.
Mia: Yes, actually we are not having any stable salary. Thus, we are quite worried about the
interest payment of the loan and also we were thinking of having a loan in which we are
not required to pay any principal amount in initial years so that the amount can be
invested in business for growth.
Jack: Fine Mam, I would try my best to avail you with a offer according to your requirement.
Can you visit my office in morning at 10:00, so that we can discuss about the terms over
their. I will text you my address.
Peng: Yes sure, we will come. But make sure that we want proper documents for the forms and
all the terms and conditions should be in written format in the contract. Along with the
address, so inform us about the documents we are required to carry with us.
Jack: OK Sir, Thank You.
Role Play 1
Meeting with client
Jack: Hello, Sir. Hello Mam. I was expecting your visit. Have a seat.
Peng and Mia: Thank you!!
Jack: This is my business card and the credit guide in which all the credit facilities provided by
HVC Bank are provided. I have arranged a number of types of loans that can suit your
requirements. But before that make sure that your are clear that you have provided me
with all the required information.
Peng: Yes, we are clear from our side.
Jack: OK sir, According to me you should invest a part of your saving which is $45000 in this
house. Rest you should keep for you business. And present the price of an apartment is $
500000. Thus you will be need of $ 455000.
Peng: Yes..
Jack: According to this I have some home loans with different interests and different repayment
time period. These are available in this chart.
Amount Rate of interest Repayment time
period
Amount of instalment

$ 455000 6.00% 12 Divisible in years
$455000 8.00% 14 Divisible in years
$ 455000 5.00% 8 100000 in first 2 years and rest in
divisible years.
Peng: Any other offer!!
Jack: Yes sir, as per your requirement of no repayment of principal in early years. We have two
offers.
 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.
Peng: what is the rate of interest and payment time period.
Jack: This plan will charge you 6% and will be repaid in 12 months.
Mia: Sir, what will be your charge.
Jack: Mam, as commission I will charge only $ 180.
Mia: OK, anything else we should know about the loan.
Jack: Yes, Sir and Mam, make sure that you make your payments in time. Out policies are
flexible. So, of any time you are not able to make payment. You can contact me or the
bank anytime and can delay the payment. But this can also be extended to 2 months only.
Peng: OK Sir, We would like to go with this plan.
Jack: Fine Sir, I hope you are satisfied with the policy.
Peng and Mia: Yes, Sir.
Jack: Thank you!!. 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.

REFERENCES
Books and Journals
Gromek, M. and Dubois, A., 2018. Digital meetings: Real growth, better funding? An
introduction to Swedish crowdfunding. In The Rise and Development of FinTech (pp.
223-237). Routledge.
Ma, C., 2020. Per-customer quantity limit and price discrimination: Evidence from the US
residential mortgage market. International Journal of Industrial Organization. 70.
p.102588.
Reeves, D.L., 2017. Finance. Cherry Lake.
Woods, P.A. ed., 2017. Morrissey in conversation: the essential interviews. Plexus Publishing.
Yang, X., Kazemi, H.B. and Sherman, M.G., 2021. Hedge Funds and Their Prime Brokers:
Favorable IPO Allocations. The Journal of Portfolio Management.