Application
This unit describes the skills and knowledge required to settle applications and loan arrangements for debt finance and undertake final arrangements to secure and complete the lending transaction for a client applying for a mortgage or related finance.
It applies to individuals who use organisational skills to accurately complete and coordinate tasks within agreed timelines and industry or organisational conditions.
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. Prepare for settlement | 1.1 Confirm all pre-settlement conditions of finance approval with clients 1.2 Communicate with various parties involved in settlement process and confirm that documentation and other settlement issues are in order 1.3 Check documents to ensure they are correctly executed, signed, witnessed and dated before sending to approving personnel |
2. Register securities | 2.1 Check loan contract for conditions relating to taking of security 2.2 Instruct party acting for lender to liaise with all parties to settlement and attend settlement 2.3 Register and stamp securities in accordance with lender’s procedures and relevant legislation, and confirm all security actions taken |
3. Arrange for disbursement of funds | 3.1 Arrange drawdown of funds by client, or solicitor acting for client 3.2 Disburse funds in accordance with requirements of loan approval and instructions received from client 3.3 Activate relevant client correspondence to advise client of disbursement of funds, date of settlement, manner of disbursement and other relevant details |
Evidence of Performance
Evidence of the ability to:
communicate effectively with the client and other parties so that they understand the pre-settlement conditions and their involvement required
accurately complete loan settlement tasks so that disbursement of funds are within agreed timelines, as required by the organisation and the client
interpret and comply with relevant legislation, statutory requirements and organisational procedures.
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:
explain different pre-settlement conditions required by lenders including gaining consent of prior mortgagee if second mortgage security is being taken
describe different pre-settlement evidence required by lenders
explain different pre-settlement undertakings by the borrower, required by lenders:
sale and settlement of other property
repayment of other debts
provision of evidence of insurance
explain different documentation required by lender:
credit check authority signed
guarantees
loan contract
periodical payment authority
signed application form
explain the role of various parties involved in the settlement process
describe settlement issues that can occur
describe key features of current industry codes of practice, legislation and statutory requirements including:
National Credit Code
privacy legislation
credit legislation
outline the steps in the process of registering security documentation
explain relevant policies and procedures in regard to opening an account for funds to be disbursed.
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 product information
relevant specialist software system and data.
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, 1.3 | Analyses and conducts detailed review of complex textual documentation to determine accuracy and completeness of information |
Writing | 1.1, 1.2, 2.2, 2.3, 3.1, 3.3 | Prepares correspondence and completes records and forms using appropriate terminology , language and writing mechanics |
Oral Communication | 1.1, 1.2, 2.2, 3.1 | Provides clear and explicit information and instructions to others Uses active listening and questioning to confirm and clarify requirements |
Numeracy | 1.1, 3.1, 3.2 | Performs mathematical calculations to analyse and check financial and numerical information for accuracy and completeness |
Navigate the world of work | 1.3, 2.1, 2.3 | Recognises and follows organisational protocols and meets expectations Monitors adherence to legal and regulatory obligations |
Interact with others | 1.1, 1.2, 2.2, 3.1, 3.2 | Collaborates with others to achieve joint outcomes Selects and uses appropriate communication conventions and protocols to liaise with clients, lenders and other stakeholders Adapts personal communication style to show respect for the values, beliefs and cultural expectations of others |
Get the work done | 1.1, 1.2, 1.3, 2.2, 2.3, 3.1, 3.2, 3.3 | Plans a range of routine and non-routine tasks and uses logical processes to achieve goals Uses digital technologies and systems to locate information, enter data and present information |
Sectors
Finance/mortgage broking