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Evidence Guide: FNSFMB501 - Settle applications and loan arrangements in the finance and mortgage broking industry

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

FNSFMB501 - Settle applications and loan arrangements in the finance and mortgage broking industry

What evidence can you provide to prove your understanding of each of the following citeria?

Prepare for settlement

  1. Confirm all pre-settlement conditions of finance approval with clients
  2. Communicate with various parties involved in settlement process and confirm that documentation and other settlement issues are in order
  3. Check documents to ensure they are correctly executed, signed, witnessed and dated before sending to approving personnel
Confirm all pre-settlement conditions of finance approval with clients

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Communicate with various parties involved in settlement process and confirm that documentation and other settlement issues are in order

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Check documents to ensure they are correctly executed, signed, witnessed and dated before sending to approving personnel

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Register securities

  1. Check loan contract for conditions relating to taking of security
  2. Instruct party acting for lender to liaise with all parties to settlement and attend settlement
  3. Register and stamp securities in accordance with lender’s procedures and relevant legislation, and confirm all security actions taken
Check loan contract for conditions relating to taking of security

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Instruct party acting for lender to liaise with all parties to settlement and attend settlement

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Register and stamp securities in accordance with lender’s procedures and relevant legislation, and confirm all security actions taken

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Arrange for disbursement of funds

  1. Arrange drawdown of funds by client, or solicitor acting for client
  2. Disburse funds in accordance with requirements of loan approval and instructions received from client
  3. Activate relevant client correspondence to advise client of disbursement of funds, date of settlement, manner of disbursement and other relevant details
Arrange drawdown of funds by client, or solicitor acting for client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Disburse funds in accordance with requirements of loan approval and instructions received from client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Activate relevant client correspondence to advise client of disbursement of funds, date of settlement, manner of disbursement and other relevant details

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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

Required Skills and Knowledge

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 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.

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.