FNSFMB402: Identify Client Needs for Broking Services - Mortgage Broker Laws and Regulations - Economics Assignment Help

Assignment Task:

Activity 1
Explaining finance and mortgage broking services to clients
Before undertaking this activity, download from the course website:
Module 1 Learner Guide
Read the following sections: 
The Credit Industry Participants
Identifying Client Needs
And the resource:
Credit guide example-iSelect

How would you explain the finance and mortgage broking process to clients, in a clear and unambiguous way? 
HINT: In your answer, include every step from the client first contacting you, to the follow-up service you provide after the loan has been established. 
 
How would you explain your background, credentials, and role as a broker?
Hint: Assume you are a qualified practising broker with over 3 years’ experience.
 
How would you build rapport with the client?
 
Explain the services a broking business can provide.
 
Explain the values of a broking business.
 
Write one or two questions you could ask a client to confirm that they understand the fees and charges involved in the service you provide.
 

Activity 2
Explaining finance terms and concepts 
Before undertaking this activity, download from the course website:
-Module 1 Learner Guide
Read the following sections:
The Credit Industry Participants
Mortgage Broker Laws and Regulations
Other laws Affecting Mortgage Brokers
Property Titles and Ownership
Property Investment
Property Valuation
Understanding Products & Services

Explain the concept of credit.
 
What is a credit reporting service?
 
Describe three (3) elements that make up the economic environment.
 
What is the business cycle?
 
What are financial markets?
 
Name three (3) parties that participate in the financial industry. Describe each party’s role in the industry.
 
What are interest rates and why are they charged?
 
How are interest rates changed and set?
 
What are exchange rates?
 
Give an example of how exchange rates might affect a business.
 
What is inflation?
 
What is a deposit bond?
 
What is the procedure for lodging a deposit bond?
 
Define the lender in a transaction 
 
Define the borrower in a transaction 
 
Define the lessor in a lease agreement
 
Define the lessee in a lease agreement. 
 

Define the mortgagee in a transaction
 
Define the mortgagor in a transaction. 
 
How would you explain land titles to a client?
 
How would you explain title searches to a client?
 
What is strata title?
 
How does strata title differ from company title?
 
What does it mean when a loan proposal has multiple securities? Provide an example of a loan proposal with multiple securities.
 
What is a second mortgage?
 
Give an example of a situation in which a client might seek a second mortgage.
 
What is a ‘Mortgagee sale’.
 
Define a subdivision of title.
 
What is a partial discharge of a mortgage?
 
What is a Caveat
 
What is a Torrens title?
 
What does ‘indefeasibility of title’ mean?
 
What is the difference between a Vendor and a Purchaser in a property transaction?
 
What issues need to be considered in determining whether two people should acquire a property as joint tenants or tenants in common?
 
What financial records should be kept and maintained for Torrens title ownership compared to Strata title ownership.
 
What is the difference between a split loan and an interest-only loan?
 
What is the difference between an offset account and a line of credit?
 
What is the Privacy Act about?
 
Why would a loan to valuation ratio of 80% or more require lenders mortgage insurance?
 

Activity 3
Complaints and dispute resolution
Before undertaking this activity, download from the course website:
Module 1 Learner Guide
Read the following section:
The Credit Industry Participants
And the resource:
ASIC RG 165- Summary of dispute resolution 

Describe the key features of Dispute Resolution under ASIC RG 165.
 
Explain the role of AFCA in Dispute Resolution.
 

Background to question 3
Read this dispute resolution process, extracted from the website of a broker group:
We hope that you are delighted with our services. However, if you have any complaints, you can raise these directly with the representative with whom you are dealing.
If you are not satisfied with the response that you receive, you may contact our Credit Services and Standards team, by
telephoning xxxx
emailing xxxx.com.au or
writing to PO Box xxx Sydney NSW 2059.
When we receive a complaint, we attempt to resolve it as quickly as possible, subject to a full investigation of all the circumstances involved.
Australian Financial Complaints Authority
If we are unable to resolve your problem satisfactorily and if you are not satisfied with the outcome of your complaint, you may refer the matter to the AFCA an ASIC-approved External Dispute Resolution service.
External dispute resolution is a service provided at no cost to you, which gives you access to an independent mechanism for the resolution of specific complaints or disputes.
You can obtain further details about our dispute resolution procedures on request.

Identify any areas of this Dispute Resolution process that you consider ARE NOT compliant with the ASIC RG165 summary of Dispute Resolution principles.
 

Activity 4
Product knowledge and research
Before undertaking this activity, download from the course website:
Module 1 Learner Guide
Read the following section:
Understanding Products & Services

Choose a major Australian lender to research. Name three (3) of the credit products that the lender provides.
Hint: Go to a major bank website
 
Describe the purpose of each of the following products:
Interest only loan,
Fixed rate loan,
Line of credit.
HINT: When defining ‘purpose’, describe the circumstances where the product would be considered not unsuitable, and explain the client need that it satisfies.
 
Select one of the products identified in the question above. How would you summarise the benefits and disadvantages of that product? 
HINT: In your answer, think about what the client would need to know about that product
 

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