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Student Assessment Tasks
FNSFMB504 Implement complex loan structures
Table of Contents
Table of Contents 2
Assessment Information 3
Assessment Instructions 5
Student Assessment Agreement 6
Assessment Task 1 Cover Sheet 7
Assessment Task 1: Written Questions 8
Assessment Task 1 Instructions 10
Assessment Task 1 Checklist 12
Assessment Task 2 Cover Sheet 13
Assessment Task 2: Loan qualification activities project 14
Assessment Task 2 Instructions 16
Assessment Task 2 Checklist 21
Assessment Information
The assessment tasks for FNSFMB504 Implement complex loan structures are included in this Student Assessment Tasks booklet and outlined in the assessment plan below.
To be assessed as competent for this unit, you must complete all of the assessment tasks satisfactorily.
Assessment Plan
Assessment Task Overview
1. Written questions You must correctly answer all questions.
2. Loan qualification activities project You are required to assist a client to qualify for a residential investment loan. This includes planning the actions that should be undertaken and co-ordinating the process.
Assessment Preparation
Please read through this assessment thoroughly before beginning any tasks. Ask your assessor for clarification if you have any questions at all.
When you have read and understood this unit’s assessment tasks, print out the Student Assessment Agreement. Fill it out, sign it, and hand it to your assessor, who will countersign it and then keep it on file.
Keep a copy of all of your work, as the work submitted to your assessor will not be returned to you.
Assessment appeals
If you do not agree with an assessment decision, you can make an assessment appeal as per your RTO’s assessment appeals process.
You have the right to appeal the outcome of assessment decisions if they feel they have been dealt with unfairly or have other appropriate grounds for an appeal.
Naming electronic documents
It is important that you name the documents that you create for this Assessment Task in a logical manner. Each should include:
· Course identification code
· Assessment Task number
· Document title (if appropriate)
· Student name
· Date it was created
For example, FNSFMB504 AT2 Implementation Report Joan Smith 20/10/18
Additional Resources
You will be provided with the following resources before you begin Assessment Task 2.
· Client Information
· Fees and Charges
· Implementation Report Template
· Agreement to Proceed Template
· Loan Fees and Charges Template
· House Plans
Assessment Instructions
Each assessment task in this booklet consists of the following: Assessment Task Cover Sheet
This must be filled out, signed and submitted together with your assessment responses.
If you are submitting hardcopy, the Cover Sheet should be the first page of each task’s submission.
If you are submitting electronically, print out the cover sheet, fill it out and sign it, then scan this and submit the file.
The Assessment Task Cover Sheet will be returned to you with the outcome of the assessment, which will be satisfactory (S) or unsatisfactory (U). If your work has been assessed as being not satisfactory, your assessor will include written feedback in the Assessment Task Cover Sheet giving reasons why. Your assessor will also discuss this verbally with you and provide advice on re-assessment opportunities as per your RTO’s re-assessment policy.
Depending on the task, this may include
· resubmitting incorrect answers to questions (such as short answer questions and case studies)
· resubmitting part or all of a project, depending on how the error impacts on the total outcome of the task
· redoing a role play after being provided with appropriate feedback about your performance
· being observed a second (or third time) undertaking any tasks/activities that were not satisfactorily completed the first time, after being provided with appropriate feedback.
Assessment Task Information
This gives you:
· a summary of the assessment task
· information on the resources to be used
· submission requirements
· re-submission opportunities if required
Assessment Task Instructions
These give questions to answer or tasks which are to be completed.
Your answers need to be typed up using software as indicated in the Assessment Task Instructions.
Copy and paste each task’s instructions into a new document and use this as the basis for your assessment task submission. Include this document’s header and footer.
If you are submitting electronically, give the document a file name that includes the unit identification number, the task number, your name and the date.
Checklist
This will be used by your assessor to mark your assessment. Read through this as part of your preparation before beginning the assessment task. It will give you a good idea of what your assessor will be looking for when marking your responses.
Student Assessment Agreement
Make sure you read through the assessments in this booklet before you fill out and sign the agreement below.
If there is anything that you are unsure of, consult your assessor prior to signing this agreement.
Have you read the assessment requirements for this unit? El Yes El No
Do you understand the requirements of the assessments for this unit? El Yes El No
Do you agree to the way in which you are being assessed? El Yes El No
Do you have any specific needs that should be considered? El Yes El No
If so, explain these in the space below.
Do you understand your rights to re-assessment? El Yes El No
Do you understand your right to appeal the decisions made in an assessment? El Yes El No
Student name
Student number
Student signature
Date
Assessor name
Assessor signature
Date
Assessment Task 1 Cover Sheet
Student Declaration
To be filled out and submitted with assessment responses
fl I declare that this task is all my own work and I have not cheated or plagiarised the work or colluded with any other student(s).
fl I understand that if I If I am found to have plagiarised, cheated or colluded, action will be taken against me according to the process explained to me.
fl I have correctly referenced all resources and reference texts throughout these assessment tasks.
Assessor declaration
fl I hereby certify that this student has been assessed by me and that the assessment has been carried out according to the required assessment procedures.
Assessor name
Assessor signature
Date
Assessment outcome S NS DNS Resubmission Y N
Feedback
Student result response
fl My performance in this assessment task has been discussed and explained to me. fl I would like to appeal this assessment decision.
Student signature
Date
A copy of this page must be supplied to the office and kept in the student’s file with the evidence.
Assessment Task 1: Written Questions
Task summary
This is an open book test, to be completed in the classroom.
A time limit of 1.5 hours to answer the questions is provided.
You need to answer all of the written questions correctly.
Your answers must be word processed and sent to the assessor as an email attachment.
Required
• Access to textbooks/other learning materials • Computer and Microsoft Office
• Access to the internet
Timing
Your assessor will advise you of the due date of this assessment.
Submit
• Answers to all questions
Assessment criteria
All questions must be answered correctly in order for you to be assessed as having completed the task satisfactorily.
Re-submission opportunities
You will be provided feedback on their performance by the Assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.
If any parts of the task are not satisfactorily completed, the assessor will explain why, and provide you written feedback along with guidance on what you must undertake to demonstrate satisfactory performance. Re-assessment attempt(s) will be arranged at a later time and date.
You have the right to appeal the outcome of assessment decisions if you feel that you have been dealt with unfairly or have other appropriate grounds for an appeal.
You are encouraged to consult with the assessor prior to attempting this task if you do not understand any part of this task or if you have any learning issues or needs that may hinder you when attempting any part of the assessment.
Written answer question guidance
The following written questions use a range of “instructional words” such as “identify” or “explain”, which tell you how you should answer the question. Use the definitions below to assist you to provide the type of response expected.
Note that the following guidance is the minimum level of response required.
Analyse – when a question asks you to analyse something, you should do so in in detail, and identify important points and key features. Generally, you are expected to write a response one or two paragraphs long.
Compare – when a question asks you to compare something, you will need to show how two or more things are similar, ensuring that you also indicate the relevance of the consequences. Generally, you are expected to write a response one or two paragraphs long.
Contrast – when a question asks you to contrast something, you will need to show how two or more things are different, ensuring you indicate the relevance or the consequences. Generally, you are expected to write a response one or two paragraphs long.
Discuss – when a question asks you to discuss something, you are required to point out important issues or features and express some form of critical judgement. Generally, you are expected to write a response one or two paragraphs long.
Describe – when a question asks you to describe something, you should state the most noticeable qualities or features. Generally, you are expected to write a response two or three sentences long.
Evaluate – when a question asks you to evaluate something, you should do so putting forward arguments for and against something. Generally, you are expected to write a response one or two paragraphs long.
Examine – when a question asks you to examine something, this is similar to “analyse”, where you should provide a detailed response with key points and features and provide critical analysis. Generally, you are expected to write a response one or two paragraphs long.
Explain – when a question asks you to explain something, you should make clear how or why something happened or the way it is. Generally, you are expected to write a response two or three sentences long.
Identify – when a question asks you to identify something, this means that you are asked to briefly describe the required information. Generally, you are expected to write a response two or three sentences long.
List – when a question asks you to list something, this means that you are asked to briefly state information in a list format.
Outline – when a question asks you to outline something, this means giving only the main points, Generally, you are expected to write a response a few sentences long.
Summarise – when a question asks you to summarise something, this means (like “outline”) only giving the main points. Generally, you are expected to write a response a few sentences long.
Assessment Task 1 Instructions
Provide answers to all of the questions below:
1. Explain the key features of commercial loans.
2. Explain the key features of chattel leases
3. What rights are given by The Native Title Act 1993 to Indigenous Australians who hold native title rights or who have made a native title claim?
4. Identify and explain the key features of heritage issues in mortgage broking.
5. Identify and explain the key features of loans for contaminated sites or properties near noxious industries
6. Explain the implications of borrowing against leased premises.
7. Explain the implications of clients using multiple securities of differing kinds
8. Explain the implications of clients borrowing against rural land
9. Explain the implications of specialised securities such as hotels
10. Identify the forms of security to be taken for the assignment of rental income to the lender
11. Identify the forms of security to be taken for joint and several personal or related company guarantees
FNSFMB504 Implement complex loan structures Student Assessment Tasks
12. Identify forms of security to be taken for multiple mortgages
13. Identify forms of security to be taken for registered company charges
14. Identify forms of security to be taken for second mortgages
15. Identify forms of security to be taken for the involvement of unit or family trusts as either borrowers or guarantors
16. Discuss the document requirements for disclaimers
17. Discuss the document requirements for disclosures
18. Discuss the document requirements for insurance policies
19. If a client comes to a mortgage broker with a prospectus to borrow money to invest, what should the broker’s response be?
20. For what is a Receipt of Deposit receipt required?
21. Give three important features of written advice given to a client by a mortgage broker
22. Outline the key features of relevant legislation including state and territory legislation, charges and taxes
23. Discuss time management techniques and tools to support implementation process.
Assessment Task 1 Checklist
Student’s name:
Did the student provide a sufficient and clear answer that addresses the suggested answer for the following? Completed successfully Comments
Yes No
Question 1
Question 2
Question 3
Question 4
Question 5
Question 6
Question 7
Question 8
Question 9
Question 10
Question 11
Question 12
Question 13
Question 14
Question 15
Question 16
Question 17
Question 18
Question 19
Question 20
Question 21
Question 22
Question 23
Task Outcome: Satisfactory • Not Satisfactory •
Assessor signature
Assessor name
Date
Assessment Task 2 Cover Sheet
Student Declaration
To be filled out and submitted with assessment responses
fl I declare that this task is all my own work and I have not cheated or plagiarised the work or colluded with any other student(s).
fl I understand that if I If I am found to have plagiarised, cheated or colluded, action will be taken against me according to the process explained to me.
fl I have correctly referenced all resources and reference texts throughout these assessment tasks.
Assessor declaration
fl I hereby certify that this student has been assessed by me and that the assessment has been carried out according to the required assessment procedures.
Assessor name
Assessor signature
Date
Assessment outcome S NS DNS Resubmission Y N
Feedback
Student result response
fl My performance in this assessment task has been discussed and explained to me. fl I would like to appeal this assessment decision.
Student signature
Date
A copy of this page must be supplied to the office and kept in the student’s file with the evidence.
Assessment Task 2: Loan qualification activities project
Task summary
Students are required to assist a client to qualify for a construction loan. This includes planning the actions that should be undertaken and co-ordinating the process.
This assessment is to be completed in the simulated work environment in the RTO.
Required
· Access to textbooks/other learning materials
· Computer with Microsoft Office and internet access
· Client Information
· Fees and Charges
· Implementation Report Template
· Agreement to Proceed Template
· Loan Fees and Charges Template
· House Plans
Timing
Your assessor will advise you of the due date of these submissions.
Submit
· Email with Construction Loan Implementation Report and Agreement to Proceed attached
· Email with signed Agreement to Proceed attached
· Email requesting notification when the Development Application has been approved.
· Email with the House Plans attached
· Email with the House Plans attached
· Email with the following attached:
o Development Application Approval
o House Plans
o Fixed Price Building Contract
· Email summarising the actions that will have to be undertaken next
· Email requesting notification when the settlement has taken place
· Email requesting that the client notifies the building company to begin the first stage of construction.
· Email giving information on loan changes
Assessment criteria
For your performance to be deemed satisfactory in this assessment task, you must satisfactorily address all of the assessment criteria. If part of this task is not satisfactorily completed, you will be asked to complete further assessment to demonstrate competence.
Re-submission opportunities
You will be provided feedback on their performance by the Assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.
If any parts of the task are not satisfactorily completed, the assessor will explain why, and provide you written feedback along with guidance on what you must undertake to demonstrate satisfactory performance. Re-assessment attempt(s) will be arranged at a later time and date.
You have the right to appeal the outcome of assessment decisions if you feel that you have been dealt with unfairly or have other appropriate grounds for an appeal.
You are encouraged to consult with the assessor prior to attempting this task if you do not understand any part of this task or if you have any learning issues or needs that may hinder you when attempting any part of the assessment.
FNSFMB504 Implement complex loan structures Student Assessment Tasks
Assessment Task 2 Instructions
Carefully read the following:
Cheryl and Anthony Weber are taking out a construction loan, so they can build their new home. They have found the block of land and they’ve had an initial conversation with two different builders. They have never built it is all new to them. They are happy to receive as much support in the process as possible.
They are both busy with their work and have decided that whichever builder they use, they will get assistance from the building company to assist with project management.
The land is going to cost $200 000 and the build will cost $250 000. They have a deposit of $180 000 which is partly from savings and assisted by a non-repayable parental gift.
They are confident they can afford the repayments as they will be only slightly dearer than their current rental costs.
Their loan application for an ANZ Residential Investment Land Loan with Breakfree discounts has been submitted, and they are coming to a meeting with you to look at what happens next.
They already have a plan for the building and have submitted a Development Application to the council.
Complete the following activities:
1. Prepare for the meeting with the clients
To ensure that you are ready to answer all of the clients’ questions, you are required to write a Construction Loan Implementation Report
Start by reviewing the special and complex features of construction loans.
Review the clients’ situation and what implications that will have on the loan’s implementation.
Summarise the implementation actions that are to be carried out. For each action, give an approximate timing.
If any actions require a higher priority that the others, make a note of this. If each action is dependent on the preceding action, then this should be noted.
Establish monitoring procedures that will ensure that implementation timing and priorities are adhered to.
Use the Implementation Report Template to guide your work.
2. Obtain and calculate fees and charges.
Calculate how much the fees and charges are, who they are payable to, what they are for, and a what stage of the process they are due.
Use the Loan Fees and Charges Template to guide your work.
FNSFMB504 Implement complex loan structures Student Assessment Tasks
3. Prepare the agreement to proceed.
Using the Agreement to Proceed Template, prepare the agreement so that the client can sign it at the end of the meeting. Use your Construction Loan Implementation Report to guide this. It should list the actions that the broker will be carrying out for the client.
Print out a copy of the agreement to take to the meeting with you.
4. Send an email to your assessor.
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
It should introduce and summarise the contents of the attachment and ask for the place, date and time of the meeting with the clients.
Attach your Construction Loan Implementation Report and Agreement to Proceed to the email.
5. Meet with the clients
After introducing yourself, you are required to review the steps involved in building a house with
a construction loan. Confirm that the activities are consistent with the clients’ needs.
Clearly explain the implementation actions that the client will be required to perform. Describe the interdependency of the actions, and how long they can be expected to take. Explain how the timing of the building stages payments maximises the client’s advantage.
Describe how the actions will be monitored and where you will be providing assistance.
Explain the fees and charges as set out in your Loan Fees and Charges document, ensuring that the client understands what is to be paid when.
During the meeting, you are required to demonstrate effective communication skills including:
• Speaking clearly and concisely
• Using non-verbal communication to assist with understanding
• Asking questions to identify required information
• Responding to questions as required
• Using active listening techniques to confirm understanding
Before concluding the meeting, you are required to obtain the clients’ written agreement to the implementation actions. Ask them to sign your Agreement to Proceed.
6. Send an email to the Branch Manager (your assessor).
Morgan Mortgages’ organisational procedures state that a copy of all reports and agreements to proceed should be sent to the Branch Manager for record keeping purposes.
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
It should introduce and summarise the contents of the attachments.
Attach your signed Agreement to Proceed to the email.
FNSFMB504 Implement complex loan structures Student Assessment Tasks
You receive notification from the lender that conditional approval has been given for the loan.
Final approval is dependent on the receipt of a valuer report on the land to be purchased and a fixed price building contract from the building company.
7. Send an email to the clients (your assessor).
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
It should introduce and summarise the actions that they are required to undertake. Come back with the DA
8. Send an email to the land valuer (your assessor).
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
It should introduce and summarise the actions that they are required to undertake. Attach the House Plans to the email.
9. Send an email to the building company (your assessor).
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
It should introduce and summarise the actions that they are required to undertake. Attach the House Plans to the email.
10. Send an email to the lender (your assessor).
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
It should introduce and summarise the contents of the attachments and ask to be notified when final approval has been given.
Attach the following to the email:
• Approved Development Application
• House Plans
• Fixed Price Building Contract
• Valuation Report
You receive notification from the lender that they have received your submissions and approval has been given for the loan.
11. Send an email to the clients (your assessor).
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
The email text should summarise the actions that will have to be undertaken in the next stage of the project.
12. Send an email to the solicitor (your assessor).
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
It should give confirmation of the loan approval amount and request that they organise settlement of the land with lender.
You should ask to be contacted when the settlement has taken place.
13. Send an email to the client (your assessor).
When you have received notification of settlement from the solicitor, requesting that the clients notify the building company and request that they begin Stage 1.
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
FNSFMB504 Implement complex loan structures Student Assessment Tasks
It is four months later, and the house has been completed. The clients will be moving in over the next weekend.
You receive the following email from the clients Hi Mortgage Broker.
Thank you for all your help during the construction of our investment property. We couldn’t have done it without you.
I have one concern, which I am sure that you can clear up. Now that the house has been built and everyone has been paid their fees, I am not sure that we are paying the lowest possible rate. Can we change our loan over to another one with the same lender now?
Please check that and come back to me with any suggestions. Regards,
Mr. and Mrs. Weber
14. Research whether the client’s loan can be changed.
Use the internet (you may use the chat function on the ANZ website) to determine whether the clients can change their loan to another with lower interest payments.
Then find a loan from the same lender that would have cheaper repayments that the construction loan that they have had until now.
Calculate what those monthly repayments would be and compare this to the repayments that the client has.
15. Send an email to the client (your assessor).
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
The text of the email should give them the information that they have requested
Assessment Task 2 Checklist
Student’s name:
Did the student: Completed successfully Comments
Yes No
Review special or complex features of the clients’ situation that may have implications for the implementation activities?
Prioritise implementation actions if required and give an approximate timing for each action?
Establish monitoring procedures for critical implementation activities timing and dependencies?
Complete internal and external documentation requirements?
During the meeting, confirm that the implementation activities are consistent with the clients’ needs?
During the meeting, explain implementation actions to the client clearly?
During the meeting, obtain the clients’ written agreement to perform the actions?
During the meeting, demonstrate effective communication skills including:
• Speaking clearly and concisely
• Using non-verbal communication to assist with
understanding
• Asking questions to identify required information
• Responding to questions as required
• Using active listening techniques to confirm
understanding
Issue instructions to internal personnel as required?
Implement actions that maximise advantages for the clients?
Identify and brief personnel to implement each action for the construction loan process?
Debrief the client after some actions had been implemented and address any concerns?
Coordinate implementation actions that involve actions by other professionals?
Maintain consultation and monitoring with other professionals where joint implementation action is required?
Check and follow up on lodgement of documentation to ensure that plan timings are met?
Calculate the fees and charges that will apply to the selected loan?
Task Outcome: Satisfactory • Not Satisfactory •
Assessor signature
Assessor name
Categories
implementation Report Joan Smith 20/10/18
