Mortgage Broking

Manual Version Number:

International Institute of Technology © 1 VR240919

Please note: It is a requirement for students to make their submissions using this electronic assessment booklet. At the facilitator’s discretion any submissions made in another format may not be accepted. If you are completing the course via various computers, please save the one booklet on a USB so you can send the submission in using the one file

Getting Started

Please insert your NAME, DATE and the Manual Version Number on the first page of your Assessment Booklet.

Answering Assessment Questions

Each Assessment Booklet contains blank spaces for following assessment items:

· Short Answer Questions

When submitting Assessment Booklets for marking, please ensure that the entire booklet is completed.

Short Answer Questions

Using the space/s provided, please complete your answers making sure to:

· Please restrict your answers to no more than 300 words per question

· Please include any calculations that you used to reach your answer

Referencing Your Answers

Students undertaking the course must exhibit a range of skills in order to be confirmed as competent in their course. These skills include:

· Understanding a question.

· Possessing knowledge about the issue, which in some assessments includes locating information from references.

· Providing an answer, this shows personal understanding.

Please make sure that all assessments are documented in a way that exhibits your personal study and/or research. To that end would you please acknowledge all material and sources used in the presentation of your assessment whether they are books, articles, reports, Internet searches, or any other document or personal communication. For example if:

· An idea is sourced; reference it e.g. (Bagra 2010).

· You are directly quoting, wrap it in quote marks e.g. “Tom Horner sat in a corner” (Peters 2007 page 7).

· You are quoting from the internet include quote marks and the web reference e.g. “ban on conflicted remuneration structures including commissions” <http://futureofadvice.treasury.gov.au/content/Content.aspx?doc=reforms.htm> accessed on the 28th of December 2012.

Please note that no more than 5% of direct quoting which is referenced is deemed to be acceptable and no amount of direct quoting without referencing is deemed acceptable. Any direct quoting should form only a small portion of any answer and the answer should demonstrate the student understands and can interpret the question and provide an appropriate answer. 

Whilst this will require more work for you I hope you will understand that we are trying to maintain high standards and support your progression into further qualifications.

Document Naming Instructions:

Save this file to your computer and please use the following protocol when naming the file:

SUBMISSION this relates to the number of times the file has been submitted. For example, your first submission would be S1, with any re-submission the file name should be recorded S2.

Note: If you are submitting handwritten assessments all questions must be completed in blue or black pen. If assessments are received in pencil or with illegible handwriting, a resubmission will be required.

Note: It is your responsibility as a student to keep a copy of all assessment submissions. IIT do not take responsibility for the loss of any submissions.

Distance Education Students

Student Declaration

I understand that by completing this form I am bound by the following declaration.

To the best of my knowledge and belief, no part of this assignment for the above unit has been copied from any other student’s work or from any other source except where due acknowledgment is made in the text, or has been written for me by another person.

Name: Date:

FBP: Chapter 5

International Institute of Technology © 9 VR240919

Short Answer Question 1

First Home Owner Grants and Stamp Duty concessions are State and Territory Based and are subject to constant change. For the State or Territory you live in confirm that the details in the book are consistent with the most current First Home Owner Grants and Stamp Duty exemptions quoting the website address and date you accessed it. If the details have changed document the changes.

Short Answer Question 2

Explain to your client what a 100% loan is?

Short Answer Question 3

Briefly explain split and blended loans.

Short Answer Question 4

(a) Briefly explain a line of credit loan.

(b) What is an interest only loan?

Short Answer Question 5

You begin work at your new place of employment. One of your key responsibilities is to process applications for credit. Your new manager, Robson Mischkulnig, is aware of your background as a mortgage broker and wants to draw upon your existing knowledge base. As such, he asks you to bring in the last credit application you managed to help train you into your new role.

Equipped with Basil and Daisy’s application, you begin one week of induction. You are given a copy of the ‘Sample Credit Policies and Procedures Manual’, and told these are the guidelines that inform you day to day decision making. Supplementing the manual are other protocols and laws such as the National Credit Act. You are told that in this office, decisions to reject or accept an application are formed on the basis of two criteria; credit policy and the total credit assessment which you should conduct. Any decisions to advance funds or extend credit that fall outside your approval or limits of authority must be referred to relevant approving personnel. In your case, this is Robson. You are expected to prepare and forward your recommendations to accept or reject applications to Robson promptly and in accordance with the organisation’s procedures. Of course, any required security must also be attached. Your trainer emphasises another key responsibility for those providing credit and credit reporting services. That is to keep the records system up to date. This means recording and monitoring file and record movements as well as maintaining the records according to legislative requirements and organisational policies and procedures.

Having worked through the essentials, your trainer throws you in the deep end and asks you to follow the procedures and process the sample credit application you brought with you. To test whether you are competent, you are given the following questions to complete.

(a) Under what circumstances would you be expected to refer your decision to Robson?

(b) Provide financial and legal reasons including the security used to justify your decision and present them in a format that Robson can use to review your decision.

(c) Refer to the So Sweet client record prepared in Chapter 4 short answer 5cii. Copy and paste the client record and call it ‘Updated Client record’ and update the client database with Basil and Daisy’s details from a to b above (specifically referring to the justification for approval based on their financial and legal reasons, and the security used). Highlight the changes so that these are clearly evident in the ‘Updated Client record’.

(d) Outline the steps you would take to monitor file and record movements.