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Unit of competency details

FNSFMB401 - Prepare loan application on behalf of finance or mortgage broking clients (Release 1)

Summary

Usage recommendation:
Current
Mapping:
MappingNotesDate
Supersedes and is equivalent to FNSFMB401A - Prepare loan application on behalf of finance or mortgage broking clientsUpdated to meet Standards for Training Packages Minor rewording to clarify intent of performance criteria 24/Mar/2015

Release Status:
Current
Releases:
ReleaseRelease date
1 1 (this release) 25/Mar/2015


Classifications

SchemeCodeClassification value
ASCED Module/Unit of Competency Field of Education Identifier 081101 Banking And Finance  

Classification history

SchemeCodeClassification valueStart dateEnd date
ASCED Module/Unit of Competency Field of Education Identifier 081101 Banking And Finance  30/Jul/2015 
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Unit Of competency

Modification History

Release 

Comments 

Release 1

This version first released with FNS Financial Services Training Package Version 1.0.

Application

This unit describes the skills and knowledge required to prepare a client loan application to a relevant lender, and present and process the loan using appropriate channels. Assistance with loan settlement may also apply.

It applies to individuals who use analytical and organisational skills to complete administrative requirements and use interpersonal skills to work effectively with a range of clients and personnel.

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.

Unit Sector

Finance/mortgage broking

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. Compile necessary information

1.1 Collect and complete appropriate and relevant lender forms and gather relevant signatures in appropriate format

1.2 Source information required to support loan application in accordance with National Credit Code, compliance requirements and security policies

2. Prepare loan documentation

2.1 Prepare documentation that accurately reflects client’s financial situation and personal information, and complies with lender requirements and guidelines

2.2 Confirm basic requirements of loan, including amount, term and interest rate, and check all documentation for accuracy and readability

2.3 Complete all relevant processes for proper execution of documentation efficiently and in an appropriate timeframe

3. Present documentation for assessment

3.1 Submit documentation to appropriate lender or approving officer in appropriate manner to protect client confidentiality

3.2 Notify client in timely manner of lender or approving officer's determination of offer or non-offer of loan

3.3 Provide clear, comprehensive and accurate information to client on their rights, obligations, responsibilities and manner in which to proceed if loan application is non-offer

4. Maintain communication with relevant parties

4.1 Maintain clear and open communication throughout loan preparation and presentation process with lender and client

4.2 Gather additional information requested by lender to support loan application in efficient and timely manner

4.3 Provide clear, comprehensive and accurate information to client on manner in which to proceed immediately following loan approval

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, 2.2, 4.2

  • Accesses and interprets appropriate textual information from a variety of sources to determine client's and lender's requirements
  • Reviews written and numerical information, carefully checking for accuracy and readability

Writing

1.1, 2.1, 2.3, 3.2, 3.3, 4.1-4.3

  • Prepares and structures documentation logically and concisely according to organisational formats and correct procedures and protocols
  • Completes documentation using accurate terminology, grammar and spelling to ensure clarity and readability

Oral Communication

1.1, 3.2, 3.3, 4.1-4.3

  • Uses language and concepts appropriate to audience and purpose to convey and clarify information
  • Uses questioning and active listening in verbal exchanges to determine and confirm client loan requirements

Numeracy

1.1, 1.2, 2.2

  • Uses mathematical equations to perform calculations and check accuracy of financial data relating to loans

Navigate the world of work

1.2, 2.2

  • Recognises and follows explicit and implicit protocols, legislative and ethical requirements, and meets expectations associated with own role

Interact with others

4.1, 4.3

  • Selects and uses the appropriate conventions and protocols when communicating in a range of familiar work contexts

Get the work done

1.1, 1.2, 2.1, 2.3, 3.1-3.3, 4.1, 4.2

  • Plans a range of routine and non-routine tasks in accordance with stated goals and aims to achieve them efficiently and effectively
  • Uses a formal decision-making process in undertaking evaluations against set criteria
  • Uses the main features and functions of digital tools and systems to access information, manage files and communicate with others

Unit Mapping Information

Code and title  

current version 

Code and title 

previous version 

Comments 

Equivalence status 

FNSFMB401 Prepare loan application on behalf of finance or mortgage broking clients

FNSFMB401A Prepare loan application on behalf of finance or mortgage broking clients

Updated to meet Standards for Training Packages

Minor rewording to clarify intent of performance criteria

Equivalent unit

Links

Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=c7200cc8-0566-4f04-b76f-e89fd6f102fe

 

Assessment requirements

Modification History

Release 

Comments 

Release 1

This version first released with FNS Financial Services Training Package Version 1.0.

Performance Evidence

Evidence of the ability to:

  • prepare a loan application to suit a lender’s requirements, providing all necessary support documentation
  • communicate efficiently and effectively with clients, lenders and other relevant parties
  • advise clients on how to proceed following the lender's decision on an offer or non-offer.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

  • outline key features of relevant current legislation and codes of practice relating to finance and mortgage broking
  • explain the different types of relevant lender forms
  • describe what information is required to support a loan application
  • describe key stages and features of loan settlement processes
  • describe loan requirements and characteristics including:
  • term
  • interest rate
  • amount
  • support documentation
  • describe key features of the following processes:
  • loan management
  • instructing valuers to assess the value of a property or other types of security
  • explain general and specific lender requirements and guidelines for loan applications and securing a loan
  • identify various types of security that may be required by lenders.

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 products and information
  • lending policy and procedures documentation.

Assessors must satisfy NVR/AQTF assessor requirements.

Links

Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=c7200cc8-0566-4f04-b76f-e89fd6f102fe