CFMBASv4A2 - Certificate IV in Finance and Mortgage Broking Written Assignment

Assignment Tasks

Section 1: Industry knowledge

Task 1: Questions

1. (a)  In your own words, complete the table below; define and explain loan transaction terminology and definitions of the following:

• Lender and borrower
• Lessor and lessee
• Mortgagee and mortgagor

(b) In your own words, complete the table below; define and explain the documentation used by lenders:

• Credit check signed authority
• Guarantee
• Loan contract
• Periodical payment authority
• Signed application form

(c) In your own words, complete the table below; describe:

• The negotiation process
• Customer Relationship Management (CRM) tool
• Certificate of Currency

 Task 2: Questions

1. Research the RBA website and answer the following questions:

(a) List the three (3) statutory objectives (key elements) the RBA sets out to achieve.

1. Stability of the Australian currency
2. Minimising unemployment
3. The economic prosperity and welfare of the Australian people

(b) Name three (3) things relevant to a mortgage broker’s role upon which the cash rate impacts.

1. The Interest rates on mortgages.
2. When rates go decrease or increase, they can impact the clients borrowing power.
3. Rate cuts can lead to more demand for refinancing switching lenders or new purchases.

Task 3: Questions

1. Conduct some research to identify websites that you could use to keep up to date with regulatory changes and changes in codes of practice in the mortgage broking industry.

Complete the table below with the following information:

• Two (2) Regulations/Legislations and two (2) codes of practice with which you must keep up to date.
• For both, provide the website name and URL address, and explain how these websites are helpful for keeping up to date with changes.
  • ASIC
  • MFAA

2. List two (2) risks and the consequences that are associated with not complying with the NCCP Act.

(a) In your own words, describe the key features and the purpose of codes of practice.

(b) Provide one (1) example of how a code of practice would be implemented into a work situation for a mortgage broker.

3.(a) In your own words describe best interests duty.

(b) Provide one (1) example of how the best interests duty would be implemented into a work situation for a mortgage broker.

4. (a) How would you communicate changes in regulation, legislation, or codes of practice to your colleagues?

(b) Explain how you would execute changes to your organisation’s policy, procedures and practices to ensure that you are meeting the changes (for example, the introduction of best interests duty).

5. If you were unsure of how to apply any regulation, legislation or codes of practice to your role or interaction with a client, explain what you would do.

6. Remaining compliant with financial services regulation and industry codes of practice is vital.
One way to make sure compliance is being met is through monitoring or internal audits.

You have been asked by your manager to implement an internal monitoring/audit process for your mortgage broking firm to ensure that the credit representatives are meeting their obligations with regulation, legislation and codes of practice.

Outline the monitoring/audit process that you have implemented to ensure compliance. You should include the following:

• How you will monitor/audit compliance.
• Who will undertake the monitoring/audit process.
• What tools you will use.
• How or where you will record the outcomes.

Task 4: Questions

1. Conduct your own research on current home loan industry trends. Provide a minimum of three (3) current trends.

2. (a) How do financial service providers market and/or promote their products and services?

(b) Where can you locate a lending organisation’s current promotions and specials?

(c) Describe how you would identify clients in the CRM whose needs match products and services that are part of a current promotional strategy.

(d) Describe how you can keep your product knowledge up to date. Include the methods and/or systems you could use to maintain product knowledge.

3. The Australian Banking Association’s (ABA) Banking Code of Practice (BCOP) outlines several obligations for the provision of financial products and services. The Code can be downloaded from the ABA website.

(a) List at least two (2) items of information that must be provided to a client when providing financial products and services.
(b) Refer to the items you listed in part (a) and explain what the items clearly set out.
(c) What four (4) factors does the Code advise about providing banking services to vulnerable clients?
(d) According to the BCOP, how would you identify (become aware of) a potentially vulnerable client and a client on a low-income?

4. What is a deposit bond and when would it be suitable for a purchaser to use this product?

Section 2: Business skills

Task 5: Questions

1. List a minimum of four (4) types of communication skills and explain why each is important for effective business communication.

2. (a) Explain why listening is so important for effective communication.
(b) List three (3) barriers to effective listening.

3. List five (5) tips to help someone communicate more effectively with different types of clients

Task 6: Questions

1. (a) Explain why is it important for individual work goals to align to the organisation’s goals?
(b) Identify the types of organisational framework that you can refer to when planning your own and your team’s work goals to ensure that they align to the organisation’s goals.
(c) List the colleagues you would consult with if you required clarification of your own role responsibilities and how they fit into the wider organisation’s goals and objectives.

2. (a) Where would you document the new team member’s role responsibilities?
(b) How will you outline and document their role-specific targets?
(c) Explain how you will support the new team member to set goals to ensure they will achieve their targets.
(d) Describe how you can use technology to help you manage the team’s work priorities.

3. What guidance can you provide the new team member to keep up to date with industry and product knowledge? Provide a minimum of four (4) tips.

4. (a) Describe how you can encourage and facilitate personal and professional development for you and your team?
(b) How can you record and document you and your team’s personal and professional development goals?
(c) Explain the human resources policy and procedure at CCF & MB regarding the attendance of professional development seminars, webinars and offsite development workshops.

5. (a) Describe how can you identify team health and wellbeing in the workplace.

(b) What strategies might you put into place to manage team health and wellbeing in your workplace?

6. (a) Complete the annual targets in your scorecard. (You may need to conduct some research for realistic targets there is an example Scorecard located in the Business Profile for CCF & MB)
(b) Complete the actual results up to Quarter 3. You notice you are behind in two Key Performance Indicators (KPIs). Record the results in the Scorecard below.
(c) Draft an email to your team leader:
(i) Include your results compared against the last quarter.
(ii) Include a self-assessment of your performance.
(iii) Seek feedback from your team leader of steps that you can take to improve your work performance and meet your targets.

7. Improving your own work performance requires both self-assessment and seeking feedback from others.
(a) Describe how you monitor and update your own performance against your scorecard.
(b) To improve your own personal performance, how should you approach the feedback you receive from others?
(c) When reviewing your performance against your colleagues/workgroup, describe the different methods you can use to analyse and interpret feedback from others.
(d) When communicating with people from different cultures, identify what barriers you need to overcome to ensure you meet your personal responsibilities?

8. Now that you have developed your own PDP, prepare two (2) other PDPs, each containing a minimum of two (2) development areas, for the following staff members:
(a) a loans administrative officer
(b) a mortgage broker who has recently joined the team.

Task 7: Questions

1. List and explain three (3) processes that a business can use to gather feedback from its clients?

2. (a) How can you and your team monitor the level of customer satisfaction in your workplace in line with the service standards set?
(b) Provide two (2) suggestions for ensuring that team members are accountable for the customer service standards in the workplace.

Task 8: Questions

1. Refer to the Toolbox in your subject room for Policies and Procedures and links regarding handling complaints and disputes, and respond to the following questions based on those documents:
(a) Who should a client refer their complaint to in the first instance?
(b) In accordance with the Banking Code of Practice, if a provider of financial products and services is unable to provide a resolution within 30 days, what are the five (5) steps they must take?

2. Mr Joseph Harper, a new customer, has called your office and has complained about the time it is taking to receive a decision on his loan application, which was submitted 10 days ago.
The average turnaround time with the lender Joseph has applied to for a loan is 14 working days. Additionally, the loan requires lenders mortgage insurance (LMI), which could add a further two days to the assessment time frame.
The client is getting anxious as he has made an offer on a property subject to finance. There is only 14 days from date of offer to confirm finance approval before the property will go back on the market, so he is very worried he may miss out on the property.
(a) Describe the steps you will take to resolve this complaint. Include the stakeholders you will refer to in the resolution process.
(b) Describe the resolution you will communicate to Joseph.

Task 9: Questions

1. (a) What communication methods can be used to source for new clients?
(b) How might your communication methods differ for prospective clients when using your existing networks?
(c) Explain how you could utilise your Networks for lead generation and grow your business.

2. You have made two (2) calls to potential new clients. As per the guidelines when contacting potential customers located in the Toolbox, complete the client contact register below for the following scenarios:
(a) Call 1: You made a call to Rosie Abdul. Following your introduction, Rosie agreed to continue the call. Rosie has been considering refinancing her home loan and seeking an increase to her loan so as she can renovate her kitchen. Rosie also said that the task of doing the research for different lenders seems too daunting. She is not quite ready to begin the process, but she is interested in how your brokerage could assist her. Rosie asked if you could call back in three months.
(b) Call 2: You just called Bruce O’Connor and introduced yourself and provided the purpose of the call. You asked Bruce permission to proceed with the call. Bruce advised that he was not interested and did not want to receive calls from your firm in the future.
2. Refer to the Toolbox and the ‘Guidelines when contacting potential new customers’ and answer the following questions:
(a) What are the four (4) steps you must include in your introduction when making a call to a potential new customer?
(b) Following your introduction, what important question must you ask before continuing with your call?
(c) What should you do if the person you contact, advises you that they do not wish to continue the call and they do not wish to be contacted again?

Task 10: Questions

1. (a) Identify and make a comprehensive list (minimum of ten (10) internal and external networks). This can include networking groups and/or associations.
List people by their role rather than their names — if you are not currently working, you can list the networks you would have in a mortgage broker role.
(b) From the list you created in part (a), choose six (6) networks. At least one (1) must be from the financial services industry and one (1) must be a third-party referrer. The others may be from any other connections. Complete the table below by outlining how your connection with these networks is of benefit to you and to the broking business.
(c) From the list in Part (b), choose three (3) connections/networks. Explain how you develop and maintain those relationships. Include how you will stay in contact and also how you will enhance the relationship to ensure it remains mutually beneficial.
(d) Identify and explain the importance of three (3) communication channels and tools that you use to develop and maintain professional relationships.

2. Explain how you will maintain policy, regulations and codes of practice when networking to promote your business and enhance its reputation. Include how you would present yourself, communicate and maintain client confidentiality.

3. (a) Identify two (2) practices that could be implemented to improve business practices when it comes to developing and maintaining networks.
(b) Explain which personnel you would involve in reviewing your network connections to ensure that they are appropriate for your business’ needs and why you would involve them.

Assessment Summary

The assessment focuses on industry knowledge, business skills, and networking competencies relevant to mortgage broking and financial services. It is divided into multiple tasks, covering practical and theoretical aspects:

Key Pointers to be Covered:

1. Industry Knowledge:

   • Definitions and roles (Lender, Borrower, Lessee, Mortgagee, etc.)
   • Documentation used by lenders (Loan contracts, Guarantees, Credit checks, etc.)
   • Regulatory knowledge (RBA objectives, NCCP Act, Codes of Practice, ABA Banking Code of Practice)
   • Home loan trends and promotional strategies

   • Compliance and monitoring processes

2. Business Skills:

   • Communication and interpersonal skills, including listening, reporting, and effective client interaction
   • Goal alignment with organisational objectives
   • Team management, professional development, and performance monitoring

   • Handling complaints and disputes professionally

3. Networking & Client Engagement:

   • Internal and external network development
   • Relationship maintenance and communication strategies
   • Compliance and professionalism in networking
   • Lead generation and client acquisition strategies

Assessment Approach by Academic Mentor

The Academic mentor guided the student step by step to ensure structured learning and practical application:

1. Understanding Requirements:

   • Reviewed the assessment tasks in detail.

   • Highlighted key concepts in mortgage broking, legislation, and banking codes.

2. Section 1 – Industry Knowledge:

   • Encouraged research on regulatory frameworks (RBA, ASIC, MFAA) and documentation practices.
   • Explained how to map terminology to practical scenarios.
   • Guided students in identifying compliance risks and implementing internal audits.

   • Demonstrated linking regulatory updates to workflow adjustments and best practices.

3. Section 2 – Business Skills:

   • Mentored on effective communication skills, listening, and overcoming barriers.
   • Guided students in goal alignment with organisational objectives using scorecards and KPIs.
   • Supported drafting professional development plans (PDPs) for themselves and team members.

   • Provided examples of monitoring team health, performance, and maintaining motivation.

4. Section 3 – Networking and Client Engagement:

   • Explained methods for identifying and leveraging professional networks.
   • Guided on maintaining compliance, confidentiality, and reputation while networking.
   • Demonstrated practical use of communication channels to develop relationships and generate leads.
   • Provided case examples of handling client complaints and disputes using ABA and BCOP guidelines.

Outcome and Learning Objectives Achieved

• Knowledge Application: Students were able to define industry terms, understand documentation, and explain compliance requirements.
• Regulatory Awareness: Learners demonstrated understanding of financial legislation, codes of practice, and monitoring mechanisms.
• Professional Skills: Improved communication, client handling, conflict resolution, and teamwork skills.
• Practical Business Skills: Applied business processes for goal setting, performance assessment, and professional development planning.
• Networking Proficiency: Developed strategies to build, maintain, and leverage internal and external networks for business growth.
• Compliance and Ethics: Applied best interests duty, regulatory adherence, and ethical practices in practical scenarios.

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