Subject Code & Title: BSBITU306 Design And Produce Business Documents
Assessment name : Module 2 Written assessment
Type of Assessment :
This summative assessment will enable your assessor to make a judgement of competency based on the submission of your completed assessments against the requirements of the unit/s of competency in this module.
Benchmark:
The Assessment Benchmark developed for each unit of competency is the evidence criteria used to judge the quality of performance (i.e., the assessment decision-making rules). Assessors use these benchmarks to make judgements on whether competency has been achieved and to determine if you have performed to the standard expected to meet the unit requirements.
BSBITU306 Design And Produce Business Documents Assessment- Monarch Institute AU.
Reasonable Adjustment :
Where appropriate Monarch Institute will allow flexibility in the way in which each unit is assessed based on the needs of an individual.
Assessment Coding
Assessment of this course is established on competency-based principles:
S = Satisfactory NS = Not Satisfactory
If you fail to perform satisfactorily for the assessment in the prescribed way you may be assessed as ‘Not Satisfactory. You are required to be assessed as ‘Satisfactory’ in all assessments for each unit of competency.
Re-assessment
Your assessment can be submitted after you have reviewed the learning materials and practiced enough to feel confident in your re submission. You have two weeks from your last submission feedback to resubmit. You are re-assessed in only the areas where your assessor has indicated you were initially assessed as NS. It is at the assessor’s discretion to re-assess the entire assessment should an overall understanding not be demonstrated. When you are re-assessed as ‘satisfactory’ after re-submission you will achieve competency for this assessment.
Before you start
You’ll need to download from the Course website a number of documents to complete these assessment questions. Here’s a checklist:
Client Objectives and Requirements
Estimated Living Expenses
Fact Finder
Loan Application Supporting doc list
Loan Options
Preliminary Assessment
Qualifying Criteria-LVR
Serviceability-generic
Activity 1
Design and produce business documents
Before undertaking this activity, download from the course website:
Module 2 Learner Guide
Read the following section:
Loan Process: Forms and Documents
1.Outline an organisation’s general forms that should be prepared in accordance with the organisations policies, plans and procedures.
2.List what style and formats apply to an organisation’s requirements for document design.
3.Outline an organisation’s Compliance forms that should be prepared in accordance with the organisation’s policies, plans and procedures.
4.Describe the function and features (apps) of a contemporary computer with regard to designing forms.
Hint: Describe the App(s) you use.
Activity 2
Present broking options to client
Before undertaking this activity, download from the course website:
Module 2 Learner Guide
Read the following sections:
- The Loan Process from A to Z
- Loan Process: Forms and Documents
- Initial client meeting-Requirements and Objectives
- Preliminary Analysis and Assessment
- Researching Loan Options
1.Explain the loan application process from the initial client meeting to settlement.
2.List one (1) key product available from a major lender in the following categories:
BSBITU306 Design And Produce Business Documents Assessment- Monarch Institute AU.
- Home loans
- Investment loans
- Credit cards
- Personal loans
Hint: Provide details of each product including name of lender, name of product, typical terms and interest rates
3.Select 3 different lenders. List at least 3 key credit products or services that each offer.
4.A lender offers a loan of $10,000 for a term of one year and will charge $900 in interest. Explain how to calculate the flat interest rate.
5.For the loan in Q 4, explain how to calculate the monthly loan repayments.
Hint: Note this is a simple interest loan NOT a reducing principal loan. Repayments must include both principal and interest
6.For the loan in Q 4, what is the loan term?
Hint: The loan term is expressed in months.
7.For the loan in Q 4, what are the risks for the borrower in taking out this loan. Assume it is unsecured.
Hint: What events could occur that may impact on the borrower
8.Research what government assistance is currently available for first home buyers in your state.
9.Research what government assistance (if any) is currently available for concession card holders,disadvantaged or low income earners in your state.
Hint: This refers to mainly Centrelink Pensioner and other concession card holders and not concessions or discounts available to First Home Buyers.
10.Describe the key features of at least two different presentation techniques you could use for your client meetings. Include at least one technology supported technique.
Hint: Think about paper, verbal and visual.
11.Explain the key features of the NCCP and regulations in regard to Disclosure.
12.Explain why these fees are charged and who pays (assume you are to explain this to a client):
- Loan application fee
- Monthly loan account fee
- Mortgage insurance premium
- Annual loan package fee
- Broker commissions
13.Describe the negotiation process.
Hint: Use an example of trying to convince a client that they should delay proceeding with the loan they seek until they have saved up more cash to reduce LMI.
14.Explain the reason why unused credit card limits might be reduced when applying for a home loan.
Hint: Review the Serviceability calculator
15.What fees are included in a Comparison Rate.
Activity 3
Preparing a loan application
Before undertaking this activity, download from the course website:
Module 2 Learner Guide
Read all sections
1.Which document(s) do you use to confirm the clients basic requirements of the loan sought,amount, term and interest rate preferred.
Hint: The document would be completed during the initial meeting with the client
2.You have just lodged a loan application for a client to refinance a home loan at 80%LVR. One of the monthly loan repayments was shown on the bank statement as being late by 1 day. You have attached an explanatory letter with the application but have indicated to the client that the lender may not accept the excuse. In case the lender declines to offer a loan, write an email to the client to explain what this means and their rights, obligations and responsibilities. i.e.What will you do if that happens.
Hint: What options do you suggest.
3.Outline the key features of your Responsible lending obligations.
Hint: There are 3 key NCCP obligations
4.Describe how valuations are ordered.
Hint: Who and when does the ordering occur.
5.Describe the types of property security that a mortgage lender may accept.
6.When preparing a loan application, explain at least two (2) reasons why proper execution of documentation and in an appropriate time frame is important.
7.How do you protect a client’s confidentiality when submitting a loan application to the lender.
Hint: How to submit so that only the lender has access to the information.
8.Describe key stages and features of the loan settlement process.
Hint: The process covers a number of steps from Unconditional approval through to post settlement
9.Describe key features of the loan management process.
Hint: The process the lender follows from settlement on
10.Describe the explicit and implicit protocols, legislative and ethical requirements of a mortgage broker’s role. Provide at least two (2) legislative requirements and at least one (1) ethical requirement.
Hint: Summarise a broker’s overall obligations under the NCCP and Code of Conduct
- Describe the client’s expectations of the role of a mortgage broker.
Activity 4
Settle loan application
Before undertaking this activity, download from the course website:
Module 2 Learner Guide
Read the following sections:
- The Loan Process from A to Z
- Loan Process: Forms and Documents
- Settle Loan Applications
1.List all the actions that a mortgage broker is required to do in the loan application settlement process.
2.Describe each party’s settlement requirements.
3.List additional documents that a settlements officer may require prior to completing settlement.
4.List the settlement issues that may need to be addressed by the Broker or Lender to enable settlement to take place.
5.Describe the Draw down and Account Opening procedure that a Lender will undertake.
6.Outline the two steps in the process of registering security documentation.
7.Describe the relevant credit legislative or statutory requirements involved up to and including loan settlement. Loan settlement is the completion of the loan application process. The Broker’s compliance obligations cover the entire process.
Hint: What is the main credit Act Brokers work under
8.Describe the legislation involved with the property title transaction.
9.Explain two different types of pre-settlement conditions that could require attention by the settlements officer.
Hint: Refer to your answer in Q4 above
10.Describe different pre-settlement evidence required by lenders.
Hint: Refer to your answer in Q3 above
11.How would you obtain consent of a prior mortgagee if a second mortgage security is involved?
12.Explain the role of the various parties involved in the settlement process.
13.Explain different pre-settlement undertakings by the borrower involving:
- Sale and settlement of the property
- Repayment of other debts
- Provision of evidence of insurance
- Credit check authority
- Loan contract
- Periodical payment authority
- Signed application form
14.Lenders may require a Guarantee to be provided as added security for a loan. This is often involved with Family Guarantor loans and Company loans. Describe the documentation required by the lender to be provided by the guarantor to guarantee a loan.
Hint: A guarantee form can be for a family guarantor or a company director.
15.Describe how you would monitor adherence to legal and regulatory obligations.i.e. How would you ensure that all required documentation is recorded
16.Describe the key features of the National Credit Code (part of the NCCP).
17.Describe the key features of the Privacy Act with reference to the 13 Privacy Principles
18.Describe the key features of credit legislation (NCCP).
Activity 5
Process credit applications
Before undertaking this activity, download from the course website:
Module 2 Learner Guide
Read the following sections:
- Preparing Loan Application
- Process Applications for Credit
1.Describe the 4 C’s of credit assessment.
2.Explain why it is important to follow a standard assessment process?
3.Describe Credit Scoring.
4.For a default to be listed on a credit report, how many days does the debt need to be over due for.
5.List the documents or information required to support the credit application in accordance with credit policy and record using correct organisational policy and procedures.
6.Describe how you could verify information (check documents or information is genuine and correct) provided by applicant and obtain verification from other sources for accuracy and compliance with relevant legislative requirements, industry regulations and organisational guidelines.
7.When would you refer a decision to extend credit (approve credit) to other credit approval officers. I.e. When would you be not authorised or not be experienced enough to approve a complex application?
BSBITU306 Design And Produce Business Documents Assessment- Monarch Institute AU.
8.Describe how you would maintain up to date records according to legislative requirements and time frames, and organisational policy and procedures.
9.How would you monitor and record file movements when you refer the credit application to a senior credit assessor?
10.List the features of credit products and their application requirements.
11.The assessment of a loan application involves consideration of the type of security proposed and its value. Describe the different types of security used in credit assessments for loan applications.
Hint: Think about mortgage loans and also other types of secured loans.
BSBITU306 Design And Produce Business Documents Assessment- Monarch Institute AU.
12.Explain the key purpose of relevant credit legislation, statutory requirements and codes of practice for:
- Consumer credit
- Personal property securities
- Privacy
13.Explain at least two (2) key features of organisational policy and procedures that relate to credit assessments, security and customer service. Refer to the broker process for meeting clients and preparing proposals.
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