Task 1: You are required to have a third party to observe this role play in a simulated environment. You will need to provide the observer/third party declarer with the role play guidelines and marking/sign-off sheets to ensure they are fully conversant with what is being asked of them.
Task 2: You will notice that there are two options of Case Study within this assessment - the first (A) is more specifically for Mortgage Brokers, the second (B) for brokers in the Plant & Equipment and Motor Vehicle field. Please complete only the stream relevant to you and indicate this on the assessment cover sheet.
Either the Mortgage Finance or Motor Vehicle Equipment Checklist must be submitted with the fully completed assessment. This must encompass all documents from initial contact with the clients until settlement of the loan. Documents must be submitted in a suitable logical order and consist of all relevant NCCP documents.
Task 1: Role Play - Student skills identification
The following role play must be conducted to further determine your skills and knowledge in dealing effectively with clients. The observer must act as your chosen clients and you will be asked to explain certain parts of the application process. You must endeavour to establish rapport with the client (observer). You may also wish to write your answers down and rehearse prior to completing the role play. It is important to be prepared.
1. You may contact AAMC Training to make arrangements to assist with conducting the role play, or
2. You may arrange for an Observer/Third Party Declarer to be your "client".
Please note that the Observer/Third Party Declarer should only comment on criteria where they have directly witnessed you performing competently during the role play. Therefore you should not expect them to make assumptions about your competence. Do not pressure a third party to sign a supporting statement if she/he has not had the chance to observe your role play.
Task 2: Case Study - Loan application preparation
You will notice that there are two options of Case Study within this assessment - the first (A) is more specifically for Mortgage Brokers, the second (B) for brokers in the Plant & Equipment and Motor Vehicle field. Please complete only the stream relevant to you and indicate this on the assessment cover sheet.
Choosing one of the case studies presented below, prepare a loan file from contact with the clients to preparing the loan application for lodgement with the client's lender of choice.
In completing this task, you need to demonstrate to your assessor that you are competent in the following areas and able to:
• communicate ideas and information
• collect, analyse and organise information
• plan and organise activities
• work with others in a team
• use mathematical ideas and techniques
• solve problems by providing solutions
• use technology.
To do this you will need to compile a report (Client Needs Review/Fact Find) indicating your thoughts and processes on different aspects of your application. These may include, but are not limited to:
• the choice of loan product for your client and the information about the loan product that you presented to them. Where you located the product information. Remember there is no right/wrong answer to this area, it is always subjective.
• the use of technology to compare the product/fees, find information on the products etc.
• how you would work in a team situation with your co-workers, lenders, real estate agents, mentor etc.
In areas where you do not have copies of actual supporting documentation, insert a page with the name of the document you would include e.g. copy of driver's licence for the client.
There are a number of templates in the Member's Area under ‘Useful Resources' that you could use in your submission.
Remember there is no right or wrong answer as each client you see presents a new challenge and if you can provide solutions for those challenges you will be well regarded and successful in this industry.
Because this course is taken nationally, we ask that you localise addresses and places of employment so that you can have familiarity with the assessment.
You will have to take into account any necessary adjustment of stamp duty concessions for first home buyers. This will have to be considered when discussing and setting out the fees and costs with your clients. You will have to contact your Office of State Revenue to determine the correct amount of benefits to which your clients are entitled.
Case study A (Residential mortgage)
Background
Henry Leslie from Leslie Accounting Services has referred you his clients Fred and Maggie Everybody. He has mentioned that they are looking to purchase their first home. Whilst in their early ‘40s, they have previously not owned a home due to the husband being an engineer with the Australian Defence Forces. Because of this and constant moving they really weren't in a position to buy in one location. Fred has since left the services and has been working with BHP Billiton on their mining projects. This entails working on a ‘two weeks on, one week off' basis. Fred enjoys an annual income, paid monthly, of $115,000 with a subsidised rent when on location on the job.
Maggie works at the local council child care centre on a permanent/part time basis and earns $29,000 annually, paid weekly. She is a qualified nurse.
They have two children. Joshua, 18, is employed fulltime, lives at home and pays $75.00 per week board. Melanie, 13, is in her first year at high school and is dependent on her parents.
Currently the couple is renting in a suburb near you and paying $420.00 per week to the local Ray White real estate office. Due to diligent saving and being beneficiaries of a family deceased estate they find themselves in a sound financial position and ready to purchase their own home and settle into one area. They are conscious of the current economic times and wish to entrench their current situation by also considering future investment opportunities.
One of the most important questions you will ask when completing your Client Needs Review is about Risk Protection. Have the clients considered the ramifications of financial hardship caused by illness, accident or death? The Q & A component of the CNR covers this adequately. You are made aware their contents are insured but they have no insurance policies covering life, trauma and income protection. This is where you ask what cover they consider is enough in view of the financial commitments they are now planning? Will Maggie have to visit Centrelink if an unforeseen event happens to Fred? Should they have to change their lifestyle? Just remember your Duty of Care.
They have around $184K plus the FHOG available and are looking to buy land with a purchase price of $240K and construction in the vicinity of $350-360K. (Students in NT and SA will have to adjust the land and construction costs to fit in the capped amount criteria.) They estimate they will spend an additional $60K on furnishings and garden. You are to interview the clients and propose a loan structure that will suit their needs. They have indicated that they would like to be provided a minimum of three (3) sound lending strategies acceptable with different providers. They normally clear (swipe) their credit cards monthly with the exception of Mrs Everybody's Myer 1 account.
It may be to their benefit to clear the car loan account with Esanda. These are the points of discussion that should appear in your interview notes.
CASE STUDY ASSESSMENT OPTIONS:
1. If you are in a State or Territory that FHOGs are available to both forms of home purchasing choose either an existing or new home acquisition for your case study (you do not have to complete one of each).
2. If you are in a State or Territory that only offers a FHOG on new and not established homes you will have to choose that option for a case study.
If at some later stage the FHOGs rise or fall, please adjust the applicable purchase prices to cater for those changes as this task forms an important part of the assessment process and must be completed.
2500 words
10 references
Need to complete case study