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Unit of competency details

FNSFMB501 - Settle applications and loan arrangements in the finance and mortgage broking industry (Release 1)

Summary

Usage recommendation:
Current
Mapping:
MappingNotesDate
Supersedes and is equivalent to FNSFMB501A - Settle applications and loan arrangements in the finance and mortgage broking industryUpdated to meet Standards for Training Packages Minor edits 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 settle applications and loan arrangements for debt finance and undertake final arrangements to secure and complete the lending transaction for a client applying for a mortgage or related finance.

It applies to individuals who use organisational skills to accurately complete and coordinate tasks within agreed timelines and industry or organisational conditions.

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. 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

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, 1.3

  • Analyses and conducts detailed review of complex textual documentation to determine accuracy and completeness of information

Writing

1.1, 1.2, 2.2, 2.3, 3.1, 3.3

  • Prepares correspondence and completes records and forms using appropriate terminology , language and writing mechanics

Oral Communication

1.1, 1.2, 2.2, 3.1

  • Provides clear and explicit information and instructions to others
  • Uses active listening and questioning to confirm and clarify requirements

Numeracy

1.1, 3.1, 3.2

  • Performs mathematical calculations to analyse and check financial and numerical information for accuracy and completeness

Navigate the world of work

1.3, 2.1, 2.3

  • Recognises and follows organisational protocols and meets expectations
  • Monitors adherence to legal and regulatory obligations

Interact with others

1.1, 1.2, 2.2, 3.1, 3.2

  • Collaborates with others to achieve joint outcomes
  • Selects and uses appropriate communication conventions and protocols to liaise with clients, lenders and other stakeholders
  • Adapts personal communication style to show respect for the values, beliefs and cultural expectations of others

Get the work done

1.1, 1.2, 1.3, 2.2, 2.3, 3.1, 3.2, 3.3

  • Plans a range of routine and non-routine tasks and uses logical processes to achieve goals
  • Uses digital technologies and systems to locate information, enter data and present information

Unit Mapping Information

Code and title  

current version 

Code and title 

previous version 

Comments 

Equivalence status 

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

FNSFMB501A Settle applications and loan arrangements in the finance and mortgage broking industry

Updated to meet Standards for Training Packages

Minor edits 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:

  • 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.

Knowledge Evidence

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.

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 product information
  • relevant specialist software system and data.

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