Assignment - Diploma of Finance and Mortgage Broking Management
Capital City Finance and Mortgage Brokers (CCF & MB)
George and Mildred are very happy with the way you service your clients and are sure that you are a good fit for the team. They now want you to turn your focus to your primary task which is to assist in expanding the business by building relationships with selected real estate agents, accountants and legal firms through strategic alliances. They also want you to consider how CCF & MB can consolidate its relationships with its existing strategic partners.
Let's recap on what you already know about Capital City Finance and Mortgage Brokers (CCF & MB).
It's a family owned business providing a range of mortgage and finance broking services to the business and private sectors, with experience in all facets of finance and insurance providing expert advice covering a multitude of products and options existing within the market.
CCF & MB specialises in home loans, commercial lending, business lending, personal and motor vehicle finance and insurance (life and general), and focuses on helping clients find the finance service suited to their individual circumstances.
It provides its services through its association with the following partners:
- Australian Aggregators, a rising business in the aggregation business with an extensive panel of residential and commercial lenders, and asset finance.
- ABC General Insurance, a boutique insurance company specialising in a full range of general insurances.
- XYZ Life a small family-owned insurance brokerage specialising in the full range of life insurance products.
Based in the city, CCF & MB has the capacity to service clients from their office or anywhere at their clients' convenience through its team of mobile brokers.
CCF & MB does not hold a credit license but operates as a credit representative of Australian Aggregators.
Since its inception 13 years ago CCF & MB has built a loan book of almost $1.2 billion and averages over $120 million in new loans annually.
CCF & MB's vision is to be the mortgage and finance broker of choice in the greater metropolitan area
CCF & MB's mission statement is to operate professionally in accordance with legislation, our licence and professional standards
CCF & MB's values are as follows:
- to act with honesty and integrity at all times
- to provide unbiased advice and conduct business, free from any conflict of interest
- to maintain confidentiality in all dealings
- to meet all NCCP regulatory requirements
- to comply with all mortgage industry laws and regulations
- ensure quality and efficiency in its loan processes.
Section 1: Complex lending and broking
Only complete Tasks 1-3 for one (1) of the case studies in Section 1
Case study A- Tom and Steve Broad
Task 1a - Identify the clients' complex broking needs
Prepare a list of questions that you would need to ask Tom and Steve about their history and experience, and the unit purchase.
In preparing your list of questions you should ensure that you cover the following:
The complex features of Tom's and Steve's situation and objectives.
Potential risks and Tom's and Steve's tolerance of risk. In considering risk you should consider:
- how you would identify the risks and the criteria you used to evaluate these risks
- how you would assess their current exposure, the tools you would use in terms of probability, impact and the consequences.
Task 2a -Develop complex broking options
You are required to prepare a full report for Tom and Steve by outlining the process and the risks (potential and real) of which Tom and Steve should be aware.
In a suitable format, document the process that is required for them to purchase the two units as their investment properties, establishing a joint loan in the brother's names. You should also include a selection of lenders that will consider this style of borrowing.
In developing your report you should cover the following:
1. The parties to the loan including any opportunities or constraints that could impact on their application
2. The different options available and your recommendation of the best loan structure with the lender - are they using their own property as cross security or the cash at bank as deposit?
3. What various forms of titles could an apartment be registered in
4. A list of the lenders that are able to lend
5. The procedure to commence a loan for a property like this
6. The steps that will need to be in place
7. The client responsibilities, so Tom and Steve fully understand the loan
8. An outline as to the process and what the client needs to arrange
9. The documentation needed to commence the borrowing
10. The name in which the client will sign the contract/purchase/offer and acceptance. If a Family trust is involved what name would the title of the property be registered in, and advise what state you are using to base your answer on
11. The state revenue requirements
12. Which lenders may also require a personal guarantee from Steve's spouse
13. The maximum LVR to the consumer
14. A summary of all fees and charges - including those for setup and those of the lender.
Task 3a - Implement complex loan structures
Tom and Steve have accepted your recommendations and have given you authority to proceed with their application.
As part of implementing their loan application you are required to prepare a formal written loan submission to the lender for pre-approval. Your loan submission must include the following:
- serviceability calculations
- the proposed structure of the loan given there are two brothers and there is a variance in income
- the loan amount
- the property style, size, use
- any other information that is relevant to the lenders requirements.
In additional to these requirements you should also include:
- your obligations under the NCCP (if any)
- maximum loan amount
- maximum loan terms
- any ATO consideration to be made
- your state legislation and OSR requirements
- your general advice restrictions
- property purchase requirements.
Note: Any assumptions you make should be listed, and not be in conflict with the case study information already provided.
Case study B- Ray Murdoch and Steve Brown
Only complete Tasks 1-3 for one (1) of the case studies in Section
Task 1b - Identify the clients' complex broking needs
Prepare a list of questions that you would need to ask Ray and Steve about the proposed transaction.
Calculate the required servicing for the new debt, and the lender comfort surplus.
Outline the process and the risks (potential and real) of which Steve and Ray should be aware.
Task 1b - Identify the clients' complex broking needs
Prepare a list of questions that you would need to ask Ray and Steve about the proposed transaction.
Calculate the required servicing for the new debt, and the lender comfort surplus.
Outline the process and the risks (potential and real) of which Steve and Ray should be aware.
Task 3b - Implement complex loan structures
Ray and Steve have accepted your recommendations and have given you authority to proceed with their application.
As part of implementing their loan application you are required to prepare a formal written loan submission to the lender for pre-approval. Your loan submission must include the following:
- serviceability calculations, including all borrowing facilities of Directors
- the proposed structure of the loan
- the loan amount
- the property style, size, use
- any other information that is relevant to the lenders requirements.
In additional to these requirements you should also include:
- your obligations under the NCCP (if any)
- maximum loan amount
- maximum loan terms
- any ATO consideration to be made
- your state legislation and OSR requirements
- your general advice restrictions
Case Study C - Bill Smith and John Jones
Only complete Tasks 1-3 for one (1) of the case studies in
Task 1c - Identify the clients' complex broking needs
Prepare a list of questions that you would need to ask Bill and John about their history, experience, business performance and the property purchase.
In preparing your list of questions you should ensure that you cover the following:
The complex features of Bill's and John's situation and objectives.
Potential risks and Bill's and John's tolerance of risk. In considering risk you should consider:
- How you would identify the risks and the criteria you used to evaluate these risks
- How you would assess their current exposure, the tools you would use in terms of probability, impact and the consequences.
Task 2c - Prepare complex broking options
You are required to prepare a full report for Bill and John by outlining the process and the risks (potential and real) of which Bill and John should be aware.
In a suitable format, document the process that is required for them purchase the new property and establishing the loan.
In developing your report you should cover the following:
1. The parties to the loan
2. The best physical set up with the lender - are they using their own property as cross security or the investment property?
3. What name should the title be registered in given there is a Trust involved and advise what state you are basing your answer in
4. The procedure to commence a loan for a property like this
5. The steps that will need to be in place
6. The client responsibilities (Bill and John should fully understand the loan that is proposed)
7. An outline as to the lending process and what the client needs to arrange
8. The documentation needed to commence the borrowing
9. The name in which the client will sign the contract to purchase
10. The state revenue requirements
11. A statement as to whether guarantees from spouse's or any other security will be required and why this is/is not the case
12. The maximum LVR
13. Suggest three (3) lenders to client's that would be likely to consider this request
14. A summary of fees and charges - including those for setup and those of the lender.
Task 3c - Implement complex loan structures
Bill and John have accepted your recommendations and have given you authority to proceed with their application.
As part of implementing their loan application you are required to prepare a formal written loan submission to the lender for pre-approval. Your loan submission must include the following:
- serviceability calculations
- the proposed structure of the loan given the purchases is in the name of a new Unit Trust entity
- the loan amount
- the property style, size, use
- proposed security
- any other information that is relevant to the lenders requirements.
In additional to these requirements you should also include:
- your obligations under the NCCP (if any)
- maximum loan amount
- maximum loan terms
- any ATO consideration to be made
- your state legislation and OSR requirements
- restrictions on overseas purchase, if any
- your general advice restrictions
- property purchase requirements.
Section 2: Business management skills
Task4 - Developing and nurturing relationships with clients, other professionals and third party referrers
George and Mildred now require you to write a plan to assist in developing and nurturing relationships with clients, other professionals and third party referrers.
Your plan should address the following:
1. How CCF & MB's policies and procedures and legislative, regulatory and professional codes of practice impact on developing and nurturing relationships
2. How you would use CCF & MB's social, business and ethical standards to develop and maintain positive relationships
3. The importance of confidentiality and how you would maintain it in your dealings with colleagues, clients and other parties
4. How you would adjust your Interpersonal style to the needs and situation of other parties
5. How you would go about developing and maintaining business and professional networks and other relationships to benefit the organisation, and how you would use them to identify and cultivate relationships in order to promote and market the organization.
6. How you could use and cooperate with other professionals and third parties to expand and enhance the reputation of the organisation, and to identify new and improved business practices
7. How you would build referral business through appropriate communication channels to find and secure new business relationships
8. How you would identify referral needs and provide information p about CCF & MB's relevant products and services
9. How you would secure interviews with referral business so that then needs of clients can be met.
You may use any format for your plan but it must address each of the points above. If you are unsure as to how to write a plan, you can refer to the Business Growth and Marketing topic and use the suggested SMEAC format outlined in Part 5, Section 12.
When completing this task, assumptions are permitted although they must not be in conflict with the information provided in the background information.
Task5 -Growing the business
Having considered how you would go about building and nurturing relationships, George and Mildred now require you to turn your attention to marketing and promoting CCF & MB's business. This requires you to develop a marketing plan for the business.
In developing your marketing plan you should consider the following:
1. Your plan should be developed in line with CCF & MB's vision statement
2. The identification of target markets using a combination of research and your own personal experience
3. The identification of your major competitors (at least two) with a competitor analysis developed for each competitor
4. The identification of CCF & MB's market position based on your research findings and analysis
5. How you would promote CCF & MB's brand and the tools you would use to achieve this
6. The provision of options for increasing yield per existing client
7. How you would implement your plan and monitor it to ensure objectives/goals/performance indicators are being met
8. How you would adjust your plan if required.
You may use any format for your plan but it must address each of the points above. If you are unsure as to how to write a plan, you can refer to the Business Growth and Marketing topic and use the suggested SMEAC format outlined in Part 5, Section 12.
When completing this task, assumptions are permitted although they must not be in conflict with the information provided in the background information.
Task6 - Identifying risk and applying risk management processes
George and Mildred have become very concerned about the potential risks that could jeopardise CCF & MB's business operations. They were very impressed with your growth and marketing plans for CCF & MB so they have now moved you into more of a general manager's role with expanded responsibilities, including managing CCF & MB's risk. As part of your new responsibilities you are required to develop a risk management plan.
In producing this plan you are required to:
1. Establish the context for CCF & MB's risk management plan
2. List and explain the tools you will use in assessing the risks you identify
3. Identify the stakeholders you would consult in establishing context and the tools you would use in identifying CCF & MB's risks
4. Identify at least two risks that CCF & MB could face for each of the six categories of business risk including strategic risks, compliance risks, financial risk, operational risks, market and environmental risks and reputational risks with an appropriate risk statement for each identified risk
5. Conduct a risk analysis and risk evaluation for the risks you have identified
6. Identify treatments for them
7. How you will monitor and review them in your risk management plan.
When you are defining the risk criteria you intend to use you are required to create your own risk matrix to address likelihood and consequence.
Document your risk treatment plan using a risk register.
You may make any assumptions in producing your plan but these should be documented either in the body of your plan or separately before you produce it.
Task 7- Improving the business
Over the last few months business for CCF & MB has been very good with a number of new clients coming on board as a result of implementing your business growth and marketing plans. However neither you or the business owners are satisfied with maintaining the status quo; as you and they are committed to a program of continuous improvement.
You all feel that CCF & MB's competitive advantage needs to be strengthened and a SWOT should be undertaken to establish CCF & MB's strengths and weaknesses including benchmarking the business against the industry. You now decide that you will carry out a diagnosis of the business including a SWOT analysis and a benchmarking exercise to improve CCF &MB's competitive advantage and its business. You are to produce a document covering your diagnosis which will be distributed amongst CCF & MB's key personnel.
As a minimum your document should cover the following:
1. The data you have used as part of your diagnosis to identify CCF & MB's competitive advantage
2. A SWOT analysis to identify CCF & MB's strengths and weaknesses, its threats and opportunities
3. How you identified and sourced relevant benchmarking data
4. How you selected the key indicators (and who you consulted with) for your benchmarking exercise
5. A consolidated list of the areas for improvement you have identified with a cost-benefit ratio established for each of them
6. Recommendations on the changes that may be required that will affect existing workflows or CCF & MB's organisational structure
7. A high-level action plan that will implement and monitor the recommended changes to be made.
In addition to the material on your Subject 2 learning guides the following links give you access to a step-by-step guide to benchmarking and determining competitive advantage:
https://moodle.unitec.ac.nz/pluginfile.php/69011/mod_resource/content/0/benchmarkingmadesimple.pdf
https://www.researchbydesign.com.au/media/RBD-WhitePaper-Competitive-Advantage.pdf
Task 8 -Managing people performance
One of your key responsibilities as general manager is to develop and implement ways to improve the performance of CCF & MB's consultants and other staff members.
Answer the following questions:
1. Why is it important to consult with stakeholders when allocating work? What are the possible consequences of allocating work without consultation?
2. Describe the process you might follow when developing quantitative and qualitative performance criteria. You should explain how you ensure that the criteria relate to CCF & MB's objectives and how to motivate staff members to achieve these objectives.
3. Describe the different ways you might gather information about a staff member's workplace performance.
4. What are the benefits of evaluating and monitoring staff members on a continuous basis?
5. Describe how you might do this in CCF & MB.
6. Why is it important to document the performance management process? Explain the possible consequences of not retaining appropriate records of this process.
7. How can reward and recognition influence the work output of employees? Describe non-financial ways of motivating employees.
Your answers should be no more than 250 words for each numbered question above.
8. Design a high-level performance management process for CCF & MB to be rolled out to all staff members.
9. Who should you consult when designing the performance management process? List who you would consult and the reasons why.
10. Develop a checklist for delivering regular performance appraisals, including a section for team leaders and supervisors to completea section for team members participating in the performance appraisal process.
Task 9 - Showing leadership in the workplace
Leadership is defined as the ability to influence others. This assessment task requires you to reflect on your own ability to positively influence others in the workplace and the negative aspects of poor leadership.
1. Reflect on a situation where you have had a positive impact in the workplace. Please include in the reflective writing the skills, decisions and or behaviours you demonstrated that contributed to this positive change and what the impact was for the team, clients and the organisation. (400 words)
2. Reflect on a situation which was or could have been damaging to the organisation. Please include the behaviours, standards or values that were demonstrated and explain why they were detrimental. (400 words)
3. In your role as the general manager of CCF & MB create your own personal performance plan.
You may use your own personal performance plan or alternatively you can use the example below. In developing your personal performance plan you should ensure that your personal KPIs reflect CCF & MB's goals and objectives and how you can help in building CCF & MB's integrity and credibility.
Attachment:- Assignment File.rar