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

ELEMENT

PERFORMANCE CRITERIA

1. Educate client and build rapport

1.1. The finance and mortgage broking process is explained to the client in a clear and unambiguous way with the background, credentials and role of the broker clarified to build rapport

1.2. The services, values and capacity of the organisation are presented to the client and the client's understanding of the fees and charges are confirmed

1.3. Procedures for complaints handling and resolution are identified and confirmed with the client

2. Determine client's existing financial situation

2.1. Client is asked to disclose relevant facts to begin determining their personal and financial situation and the current income, expenditure and liabilities of the client are established

2.2. Current investment and assets position of the client are determined and an initial analysis of client's financial position undertaken based on the extent of client disclosure

3. Determine client goals and priorities with respect to finance broking

3.1. Client is asked to clarify their investment goals and expectations

3.2. Risk issues and tolerance are explored comprehensively with client and client concerns, if any, are identified and responded to promptly and appropriately

3.3. Client priorities are established and confirmed

3.4. Specialist advise is sought where necessary or client is referred to appropriate sources where required advice or services cannot be provided

4. Prepare necessary documentation follow-up

4.1. All relevant client facts, information, financial and personal histories are documented, checked and managed confidentially in accordance with organisation policy and guidelines and relevant legislation and industry codes of practice

4.2. Client records are created or updated where necessary in a clear and concise format and securely filed in a format and location readily accessible to other appropriate advisers

Required skills

well-developed communication skills to:

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

build rapport with the client and clearly explain financial and mortgage broking services

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 broking procedure

dealing with emotive situations as required

appropriate timing of events in the broking process

research and analysis skills for accessing, interpreting and managing complex information and analysing client needs

numeracy and IT skills to:

access and use appropriate software such as organisational broking systems, spreadsheets and databases

calculate client debt and risk quickly and accurately

access internet information

literacy skills to:

read and interpret organisational and industry information

prepare client records and related documentation

organisational skills, including the ability to plan and sequence work

Required knowledge

basic financial and accounting terms and concepts relating directly to mortgage or finance broking such as:

interest rates

flexible and fixed rates

types of mortgage accounts

procedures and principles of deposit bonds

financial records relating to different ownership models

complaint resolution processes, complaint handling procedures, relevant legislation and the roles of the various alternative disputes resolution schemes and services

credit and credit reporting services

economic environment, business cycle and role financial markets, interest rates, exchange rates and inflation

legal environment and relevant legislation affecting finance and mortgage broking services around such issues as:

disclosure

compliance and ethical requirements in terms of privacy

industry codes of practice

Uniform Consumer Credit Code (UCCC)

lender's mortgage insurance

loan transaction terminology and definitions of the parties involved such as:

lender

borrower

lessor

lessee

mortgagee

mortgagor

real estate terms and concepts such as:

land titles and searches

strata title versus company title

multiple securities

securing second mortgages

subdivisions of title and partial discharge of mortgage where multiple securities are held by lender

the legal environment for the finance industry and how tokeep currency with the changes occurring, and the issues and laws relating to disclosure and compliance

the roles of the various players in the finance broking market such as associations and government authorities

types of calculations such as deferred establishment fees and early repayment penalties

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:

communicate knowledge of the finance and mortgage broking industries effectively with clients

apply analytical skills to assess client needs

apply knowledge of investment opportunities, risk, company policies and relevant legislation so clients can make informed decisions.

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 finance and mortgage product information

access to relevant software system and data.

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

observing processes and procedures in workplaces or role plays

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.

Finance and mortgage broking process may include:

assessment of loan and pre-approval

complaints procedures

exchange of contracts

follow-up service and information

interview

letter of offer

needs analysis

regulators' guidelines

relevant industry standards and codes of conduct

settlement

the overall loan process

unconditional approval.

Background, credentials and role of the broker may include:

broker commitment to service

educational qualifications

participation in related professional associations

responsibilities of the broker

roles played by intermediaries such as lenders.

Services, values and capacity may include:

organisational commitment to service

pricing and fee structures

printed organisation information such as:

history

mission statement

client charter

range of services provided

relevant industry standards and codes of conduct

relevant legal requirements

the relationship between ethics and regulatory requirements such as good faith

types of classes of mortgage products

what to expect from broker.

Fees and charges may include:

commissions from lenders

commissions paid to franchisees

loan establishment fees

loan value fees

trailing commissions.

Procedures for complaint handling and resolution may include:

contact with client relations officer

contact with the mortgage industry ombudsman

in-house procedures.

Client's relevant facts may include:

age

business needs

debt position

family income or support

investment history

marital status

savings.

Personal and financial information may include:

details of the client's needs and objectives for:

income

security

liquidity

the time period they hope to hold property for.

Investment goals and expectations may include:

approach to investing:

speculative

passive

active

beliefs about performance, security and fluctuations in income and capital

income expectations

long-term or short-term goals

return expectations

security.

Risk issues and tolerance may include:

access restrictions of product

attitude to risk:

conservative

moderate

high

borrowing risk or gearing

flexibility of product

market and sector risks:

economic cycle

interest rates

property values

property management

specific product risk

volatility of income and capital.

Client concerns may include:

possible accrued debt

price or interest resistance

resistance to organisation or broker

risk

timing issues

uncertainty about the product.

Relevant legislation and industry codes of practice may include:

Australian Securities and Investments Commission (ASIC) Act

Corporations Act

jurisdiction of various regulators

Privacy Act

relevant legal principles

Uniform Consumer Credit Code (UCCC)

Unit sector

Finance/mortgage broking

ELEMENT

PERFORMANCE CRITERIA

This unit contains employability skills.