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FNS40815_FNSFMB402 Assessment 1 Knowledge Answers
| FNSFMB402 Identify client needs for broking services | |
| Unit Description | This unit describes the skills and knowledge required to determine clients’ finance broking requirements and explain capabilities, legal and compliance related issues so clients are aware of their rights. |
| Learning Outcomes | By the end of this unit, students will be able to:
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Activity 1
Explain the concept of ‘honeymoon rates’ offered by lenders periodically.
(Explain basic financial and accounting terms and concepts relating directly to mortgage or finance broking including: variable and fixed rate interest rates; types of mortgage accounts; procedures and principles of deposit bonds; financial records relating to different ownership models).
Activity 1 Answer
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Activity 2
What sort of information could a mortgage broker require to verify the credit status of a home loan applicant?
(Explain credit and credit reporting services).
Activity 2 Answer
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Activity 3
What part, if any, do general economic conditions play when assessing applicants for loans?
(Describe key features of the economic environment and business cycle, financial markets and the roles of industry participants, interest rates, exchange rates and inflation).
Activity 3 Answer
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Activity 4
Most standard home loans are regulated under the National Consumer Credit Protection Act (NCCP), legislation that is designed to protect consumers & ensure ethical & professional standards in the finance industry, through the National Credit Code (NCC).
Identify and describe the key features of the Act that impact on mortgage brokers.
(Identify and describe key features of the legal environment and relevant legislation affecting finance and mortgage broking services in regards to: disclosure: privacy: industry codes of practice: National Credit Code).
Activity 4 Answer
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Activity 5
Describe the circumstances where a lender would require an applicant to take out lender’s mortgage insurance.
(Describe the key features of lender’s mortgage insurance).
Activity 5 Answer
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Activity 6
Explain the term “lender’s pre-approval loan” and list the benefits and conditions of pre-approval.
(Explain loan transaction terminology and definitions of the parties involved including: lender and borrower; lessor and lessee; mortgagee and mortgagor).
Activity 6 Answer
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Activity 7
Explain what a second mortgage is, and how it works.
(Explain real estate terms and concepts including: land titles and searches; strata title versus company title; multiple securities; securing second mortgages; subdivisions of title; partial discharge of mortgage where multiple securities are held by lender).
Activity 7 Answer
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Activity 8
Identify and explain some common fees associated with taking out a home loan. (Categorise and explain types of fees and charges).
Activity 8 Answer
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Reference ID: #getanswers2001032