Application
This unit describes the skills and knowledge required to prepare a client loan application to a relevant lender, and present and process the loan using appropriate channels. Assistance with loan settlement may also apply.
It applies to individuals who use analytical and organisational skills to complete administrative requirements and use interpersonal skills to work effectively with a range of clients and personnel.
Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Compile necessary information | 1.1 Collect and complete appropriate and relevant lender forms and gather relevant signatures in appropriate format 1.2 Source information required to support loan application in accordance with National Credit Code, compliance requirements and security policies |
2. Prepare loan documentation | 2.1 Prepare documentation that accurately reflects client’s financial situation and personal information, and complies with lender requirements and guidelines 2.2 Confirm basic requirements of loan, including amount, term and interest rate, and check all documentation for accuracy and readability 2.3 Complete all relevant processes for proper execution of documentation efficiently and in an appropriate timeframe |
3. Present documentation for assessment | 3.1 Submit documentation to appropriate lender or approving officer in appropriate manner to protect client confidentiality 3.2 Notify client in timely manner of lender or approving officer's determination of offer or non-offer of loan 3.3 Provide clear, comprehensive and accurate information to client on their rights, obligations, responsibilities and manner in which to proceed if loan application is non-offer |
4. Maintain communication with relevant parties | 4.1 Maintain clear and open communication throughout loan preparation and presentation process with lender and client 4.2 Gather additional information requested by lender to support loan application in efficient and timely manner 4.3 Provide clear, comprehensive and accurate information to client on manner in which to proceed immediately following loan approval |
Evidence of Performance
Evidence of the ability to:
prepare a loan application to suit a lender’s requirements, providing all necessary support documentation
communicate efficiently and effectively with clients, lenders and other relevant parties
advise clients on how to proceed following the lender's decision on an offer or non-offer.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
Evidence of Knowledge
To complete the unit requirements safely and effectively, the individual must:
outline key features of relevant current legislation and codes of practice relating to finance and mortgage broking
explain the different types of relevant lender forms
describe what information is required to support a loan application
describe key stages and features of loan settlement processes
describe loan requirements and characteristics including:
term
interest rate
amount
support documentation
describe key features of the following processes:
loan management
instructing valuers to assess the value of a property or other types of security
explain general and specific lender requirements and guidelines for loan applications and securing a loan
identify various types of security that may be required by lenders.
Assessment Conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the finance and mortgage broking field of work and include access to:
office equipment, technology, software and consumables
lending products and information
lending policy and procedures documentation.
Assessors must satisfy NVR/AQTF assessor requirements.
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill | Performance Criteria | Description |
Reading | 1.1, 1.2, 2.2, 4.2 | Accesses and interprets appropriate textual information from a variety of sources to determine client's and lender's requirements Reviews written and numerical information, carefully checking for accuracy and readability |
Writing | 1.1, 2.1, 2.3, 3.2, 3.3, 4.1-4.3 | Prepares and structures documentation logically and concisely according to organisational formats and correct procedures and protocols Completes documentation using accurate terminology, grammar and spelling to ensure clarity and readability |
Oral Communication | 1.1, 3.2, 3.3, 4.1-4.3 | Uses language and concepts appropriate to audience and purpose to convey and clarify information Uses questioning and active listening in verbal exchanges to determine and confirm client loan requirements |
Numeracy | 1.1, 1.2, 2.2 | Uses mathematical equations to perform calculations and check accuracy of financial data relating to loans |
Navigate the world of work | 1.2, 2.2 | Recognises and follows explicit and implicit protocols, legislative and ethical requirements, and meets expectations associated with own role |
Interact with others | 4.1, 4.3 | Selects and uses the appropriate conventions and protocols when communicating in a range of familiar work contexts |
Get the work done | 1.1, 1.2, 2.1, 2.3, 3.1-3.3, 4.1, 4.2 | Plans a range of routine and non-routine tasks in accordance with stated goals and aims to achieve them efficiently and effectively Uses a formal decision-making process in undertaking evaluations against set criteria Uses the main features and functions of digital tools and systems to access information, manage files and communicate with others |
Sectors
Finance/mortgage broking