This unit applies to job roles evaluating loan applications in the finance and mortgage broking industries.

ELEMENT

PERFORMANCE CRITERIA

1. Compile necessary information

1.1. Appropriate and relevant lender forms are collected, completed, and relevant signatures gathered in an appropriate format

1.2. Information required to support loan application is sourced in accordance with the Consumer Credit Code, compliance requirements and security policies

2. Prepare loan documentation

2.1. Documentation is prepared that accurately reflects the client's financial situation, personal information and complies with lender requirements and guidelines

2.2. Basic requirements of loan, including amount, term and interest rate are confirmed and all documentation checked for accuracy and readability

2.3. All relevant processes for proper execution of documentation are completed efficiently and within an appropriate timeframe

3. Present documentation for assessment

3.1. Documentation is submitted to appropriate lender or approving officer in appropriate manner to protect client confidentiality

3.2. Application offer or non-offer of loan is determined and client is notified in timely manner

3.3. Clear, comprehensive and accurate information is given to client as to their rights, obligations, responsibilities and manner in which to proceed if loan application is non-offer

4. Maintain communication with relevant parties

4.1. Clear and open communication is maintained throughout the loan preparation and presentation process with lender and client

4.2. Additional information requested by lender to support loan application is gathered in an efficient and timely manner

4.3. Clear, comprehensive and accurate information is given to client as to the manner in which to proceed immediately following loan approval

Required skills

communication skills to:

determine and confirm client loan requirements, using questioning and active listening as required

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

customer service skills such as:

providing appropriate contact with client throughout the loan approval procedure

appropriate timing of events in the loan approval process

numeracy and IT skills to:

calculate loan details

access and use appropriate software such as spreadsheets and databases

access internet information

literacy skills to:

read and interpret organisational and industry information

prepare loan application documentation

organisational skills, including the ability to plan and sequence work

Required knowledge

loan settlement processes

loan requirements and characteristics such as:

term

interest rate

amount

contracts relating to the sale of land and legal conveyancing procedures

loan management procedures such as:

transfer of mortgages

variations in terms

increases in loan limits

procedures for instructing valuers to assess the value of a property andother types of security

relevant current legislation and codes of practice

specific and varied lender requirements and guidelines for loan writing, presentation and securing a loan

various types of security that may be required by lenders

titles office procedure relating to the transfer of land

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the ability to:

write a loan to suit a lender's requirements providing all necessary support documentation

communicate efficiently and effectively with clients, lenders and other relevant parties.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment, technology, software and consumables

access to lending products and information

access to lending policy and procedures documentation.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:

evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency

verbal or written questioning on underpinning knowledge and skills

setting and reviewing workplace projects and business simulations or scenarios

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Lender forms may include:

application forms

first home buyers grant forms

loan schedule/details

government grants and assistance forms

terms of loan.

Signatures gathered in an appropriate format may include:

electronically using appropriate security measures

in writing

verified by notary public, solicitor or equivalent

with appropriate witnesses or legal certifiers.

Information required to support loan application may include:

bank statements

copies of tax forms

documentation regarding special needs

written documentation from:

lawyers

friends or family who are assisting with the payment of the loan

banks

accountants

financial advisers.

Lender requirements and guidelines may include:

relevant and necessary documentation attached to the application

appropriate format

appropriate language and legal terms

appropriate signatures from legal authorities

clear and concise documentation.

Relevant processes may include:

appropriate credit checks being conducted in accordance with organisational and legal guidelines

appropriate organisational channels being utilised for approvals, feedback and editing of paperwork.

Documentation is submitted in appropriate manner may include:

electronically, such as:

email

internet

other secure methods

in writing.

Clear and open communication may include:

well-written documentation by:

fax

email

text message

telephone

face-to-face contact.

Additional information may include:

additional documentation from:

lawyers

accountants

past employers

current employers

tax departments

immigration

other relevant sources as requested by the lender.

Manner in which to proceed immediately following loan approval may include:

assisting with loan settlement, mainly in finance broking

attending settlement mainly in finance broking

client rights, obligations and responsibilities.

Unit sector

Finance/mortgage broking

This unit contains employability skills.