Part 3: Oral response to questions
Make a 10 minute recording of yourself answering the following questions. Before you start make sure you have read the resources in your subject in KapLearn to assist you with your oral assessment by audio recording. Leave the second column blank so your assessor can record a summary of your oral response. You will need to rehearse your responses before the oral assessment, to ensure that your responses are within the maximum timeframe.
(Note: No volunteer is required when you complete these questions.)
Questions Summary of oral response (assessor only)
1. You are a broker who charges a fee for your service. You are meeting a new client, Stephanie Jones, for the first time at your office after an initial cold call.
The purpose of the meeting is to start to gather information about her existing financial situation, goals and needs.
To comply with organisation policy and legislative requirements and to ensure that Stephanie can make informed decisions moving forward, there are two documents you must provide to Stephanie.
(a) Name the two (2) documents you must provide to Stephanie.
(b) Explain the disclosures that are contained in the documents in your own words.
(c) Give one (1) example of how you would check with her that she understands these disclosures.
(d) Communicate to Stephanie your commercial relationship with the various product providers from which you will access loan product options for her.
(Disclosures should include, but are not limited to, the range and limitation of your services, complaint handling process and the way you are remunerated.)
2. Stephanie has acknowledged that she understands the two documents and disclosures. She then begins to tell you more about her current financial situation.
(a) Describe the communication skills you will use to:
• encourage Stephanie to express her needs and goals
• determine her current investment and assets position
• consider various home loan options for her.
(b) Explain where you will initially record all information provided by Stephanie.
3. This is Stephanie’s first home purchase. She is very happy with all of your advice and has made a decision on which loan option she would like to take. She now asks ‘what happens from here?’
Advise Stephanie on:
(a) • the key documents you will require from her prior to submitting an application
• the steps that will occur from this meeting through to settlement and your role in those steps.
(b) how you will communicate with relevant parties to keep the loan approval process on track
(c) how you will communicate with her throughout the process and advise her of next steps when the lenders decision for an offer (approval) or a non offer (declined) loan is made.
4. After talking with friends, Stephanie expresses some resistance with committing and says she is a little worried that possible increases in interest rate will be too difficult for her to handle.
(a) Ask Stephanie three (3) questions to help you identify the reasons for her resistance and how you would document them.
(b) What processes would you use to research options for Stephanie and then present these options to effectively negotiate a commitment to proceed with the option you have recommended?
(c) Explain where you would document your research and discussions with Stephanie.
5. A final decision on Stephanie’s loan application has been deferred by the credit approver due to property valuation coming in $15,000 lower than purchase price and taking LVR to just over 81%. The loan required is 80% of the purchase price and you are not sure Stephanie can come up with more cash contribution right at this time. You have spoken to the valuer, who will not change the value.
(a) Describe how you would approach the lender to try to get the loan approved. Assuming that all other aspects of the proposal are strong, what would be some key points of the applicant or the proposal that you would emphasise to the lender in a bid to get loan approved.
You may make positive assumptions about the applicant, as considered appropriate.
(b) From your efforts the loan has now settled and you are required to obtain feedback from the client. Refer to the ‘Feedback Policy’ found under Organisation Policies and Procedures in the Toolbox.
• Explain the feedback policy process to Stephanie.
• Explain how her feedback would be actioned within the organisation.
• Provide two (2) other sources of feedback that could help in evaluating professional business development needs.
6. Several months have passed since Stephanie’s loan was approved and settled. Your broker business has now grown substantially to the point you now employ four staff members in support roles to assist you and the two other brokers in meeting clients’ demands and liaising with lenders and other parties. You need to restructure the business to improve teamwork and processes.
Briefly outline what you would do to initiate these improvements, taking into account:
(a) skills and knowledge of the staff member involved:
• how current allocation of duties could be improved
• how to effectively plan work to be completed and maintain a team environment, while considering constraints and available resources
(b) how data collection and storage could be better managed across the team while maintaining sustainability principles such as reducing paper documents
(c) identify and evaluate some professional development activities or tools that would improve knowledge and teamwork within the team.
7. The triple-bottom-line philosophy is key to the continuing prosperity of a business.
(a) Explain in your own words what the triple bottom philosophy is.
(b) Explain in your own words one (1) example of a new sustainability idea, activity or function you could introduce to your workplace.
Explain what your idea is, any additional equipment or facilities required and the outcome you hope to achieve.
Also explain how you will obtain approval and communicate and promote your initiative to your team.
Make some suggestions on how you will encourage your team to implement the idea.
Assessor checklist — oral responses to questions
Your assessor will complete the checklist for your oral response to each question. Demonstrated or Not Yet Demonstrated
1 Demonstrates understanding of the duty of disclosure Not yet demonstrated
2 Describes how to ascertain a client’s needs and determine their current financial position. Not yet demonstrated
3 Outlines the key documents required from a client during the loan application process Not yet demonstrated
Describes the steps that occur in the loan process Not yet demonstrated
4 Demonstrates understanding of how to identify and address client concerns Not yet demonstrated
Demonstrates understanding of risks associated with various loan options Not yet demonstrated
5 Describes how a mortgage broker would approach a lender to get a loan approved. Not yet demonstrated
6 Outline how a mortgage broker can restructure their business to improve teamwork and processes. Not yet demonstrated
7 Recognises and implements sustainability principles and work practices. Not yet demonstrated
Student resubmission response (if required by assessor):
Assessor feedback: Resubmission required?
No
Part 4: Role play
You will participate in a role play for a maximum of 10 minutes. The role play will be conducted by audio recording. You will need a volunteer to assist you in the role play.
For your volunteer you need to select an appropriate person who is able to participate in the volunteer role criteria below. The volunteer needs to understand that this is part of your assessment. Provide a copy of the Volunteer Guide in your KapLearn subject to your volunteer so they understand what they need to do in your assessment.
You will not be assessed on your acting ability. You will be assessed on the criteria listed below the task under assessor feedback.
When starting your role-play recording, ask your volunteer if they give permission to be included in the audio recording. The volunteer needs to agree verbally before the recording may continue.
See the ‘resources’ in your subject in KapLearn to assist you in preparing for your role play.
Role play case study — Philip and Jennifer Brown
Note: This Philip and Jennifer Brown case study is also used in the written assignment as part of this course. It is recommended that you complete Tasks 1 and 2 of the Written assignment prior to undertaking the role play, as this will assist you in assessing the clients’ needs and potential loan structure that you can use for this role play activity. Alternatively, in preparation for the role play, use the tools available to you (e.g. loan calculators, lenders and Genworth websites), to prepare your presentation to the clients.
Background
Philip and Jennifer Brown are a young couple about to buy their first home. They have been married for five years and during that time have rented an apartment while saving for their own home.
Following a personal referral from Glenn Brown (Philip’s brother), you have already had a first meeting with Philip and Jennifer to discuss their objectives and needs. They admitted they have little time to do much research on lenders; have limited knowledge of the loan products available and basically are not sure what is right for them.
During (and subsequent) to your first meeting, Philip and Jennifer have provided the basic information documents — pay slips, tax returns, bank statements, property details for review/verification. You have now undertaken your preliminary assessment and need to discuss and present to them the proposal covering the options and your recommendations. It is important to get the proposal moving quickly, as the agent has indicated other parties are interested in the property.
They have been looking at properties for the past three months and have found a 10-year-old established apartment that has really caught their eye; although they have some concern over the kitchen, which requires a little work.
They have not paid a deposit at this stage, but the real estate agent has provided some guidance on additional fees and charges.
Following is a summary of the details of the property they wish to purchase, the couple’s financial and employment details, and the loan features they require.
The property
Address Unit 1, 92 Seaside Lane Edgartown (Your state)
Purchase price $490,000
Description 2 bedroom, 2 bathroom, Strata Title apartment
Agent details Stephanie Jones
Landline 8123 1113
Mobile 0412 880 088
The couple
Current address Unit 12, 22 Wentworth Lane, Highville, (Your state)
Philip and Jennifer have lived there since March 2012
Home phone 9123 2121
Funds position
Purchase price $490,000
Client’s estimate of costs $25,000
Total required $515,000
Loan $440,000 + LMI
Client’s own contribution (includes proposed deposit of $50,000) $75,000
Use fees and charges applicable to your state. If the servicing calculator you are using requires a postcode, select one (1) that would represent a reasonable suburb/location in your city or state.
Assets
Capital Bank savings account (joint) $78,000
Capital Bank cheque account (joint) $1,600
Holden Commodore SS 2007 (Philip) $25,000
Kia Cerato Sport 2015 (Jennifer) $9,000
Superannuation — Capital Bank (Philip) $28,000
Superannuation — Capital Bank (Jennifer) $62,000
Household effects (insured value) $40,000
Liabilities
Capital Bank personal loan (Philip) $5,600 (repayments $180 p.m.)
Capital Bank Visa card (Philip) $200 (limit $4,000)
Capital Bank Visa card (Jennifer) $1,600 (limit $5,000)
Payments have always been met on time and any prior loans repaid in terms of contracts. The minimum monthly commitment on each of the credit cards should be calculated at 3% of the credit limit.
Living expenses
Annual expenditure for living expenses — $33,000.
Employment and income
Philip (date of birth 21/2/87)
Position Team Leader (full time)
Employer ACE Pty Ltd, 101 City Rd, Westside (Your state)
Phone 9800 1111
Income (gross) $58,000 p.a. monthly gross income: $4,833
Employer contact Dwayne Johnson, HR Manager
Length of service Since October 2005
Driver’s licence 8855KL
Email philipb@ace.com.au
Jennifer (date of birth 8/10/88)
Position Accountant (full time)
Employer Tech City, 804 High Street, City East (Your state)
Phone 9910 2033
Income (gross) $95,000 p.a. monthly gross income: $7,917
Employer contact Bruce Wayne, HR Manager
Length of service Since March 2006
Driver’s licence 17016C
Email jbrown@techcity.com.au
Solicitor’s details
Jones and Co
22 High Street, City East (Your state)
Phone: 82811382
Email: jonesandco.net.au
The solicitor has quoted a fee of $1,500 for the conveyance.
The loan requirements
• 30-year term
• premium option home loan features
• variable interest rate (for this case use 4.5% p.a.)
• LMI to be capitalised
• proposed settlement date — six weeks from exchange of contracts
• ability to make additional payments from time to time without penalty
• fortnightly repayment option
• redraw facility
• funds access via card.
Note: Loan application fee is waived under Special Offer.
Other information
• They have advised that the Real Estate Agent has indicated they need to make a formal offer within the next 10 days, however they are reluctant to do so until they obtain an approval.
• Jennifer has asked if there are any professional package benefits available because she is an accountant. However she did confirm she has not maintained her continuing professional development.
• Jennifer previously owned and lived in an apartment with her two older sisters when they attended university but they sold this before she married — they did not make a lot from the sale.
• The couple do not plan to have children within the next five years.
• However, they do have plans to take a major overseas trip within five years.
• Philip is hoping for a promotion within the next 12 months upon possible retirement of a long-term employee where he works.
• They have also expressed a concern about the possibility of interest rates increasing.
Task
You are required to complete this ‘role play’ as part of the oral assessment’, which should take a maximum of 10 minutes. You may find use of the Fact Find document, Appendix 1, from the Written assignment will be helpful.
To set the scene for this role play:
• You are required to present your analysis and recommendations to your client (your volunteer) covering any concerns they may have.
• Due to the need to get an approval so contracts can be signed, an appointment has been made but unfortunately one of them (this will depend on which role your volunteer plays — Philip or Jennifer) cannot be present as he/she has had to go interstate urgently to visit a sick brother.
• Your clients do not wish to delay this meeting as they are keen to hear what you have to present — information can be passed to the other over the phone, when needed.
• This oral presentation should focus on presenting your analysis of the couple’s current position, loan prospects, evaluation of product options, as well as your recommendation, covering the following essential points:
– a summary of your understanding of the clients’ needs (this could be an outline summary of their proposed loan structure)
– a summary of their current financial position (use information from the case study)
– your explanation of the product options evaluated that meet their needs (you should have researched at least two lenders) and details of the loan features; use the internet or if working in industry, internal software to do this
– the option you recommend and the reasons for the recommendation — including the loan amount, term and repayments, explain how the recommended product meets the clients’ needs (refer to the case study) and explain why you are recommending this lender.
– invite questions from the client and respond accordingly.
There are no rules regarding the format of your presentation, however it must be presented so that it is succinct and easily understood by clients. Please use the format that best suits you — this could include covering the detail you have prepared in a written proposal document.
The role play requires the volunteer to ask at least three (3) questions — with suggested questions provided in Volunteer Guide. However, the volunteer can ask other ‘unrehearsed’ questions if they wish. Remember, you are not being judged on your acting ability. Your assessment is about how you communicate and interact with the customer. You may need to adjust your presentation of the proposal, depending on the time that the questions are asked. However; to manage time, you may ask the volunteer to keep their questions until you have finished presenting your recommendations.
The assessment criteria you will be assessed on includes the following:
• appropriate introduction and building rapport
• explore solutions that meet clients’ goals and objectives
• present broker solution to clients’ request
• explain relative fees and charges
• collaborate on risk identification
• response to questions, record customer feedback and actions taken.
Assessor checklist — role play
Assessor checklist completed after observing the audio recording of the role play Demonstrated or Not yet demonstrated
1 Uses appropriate introduction and builds rapport Not yet demonstrated
2 Explores solutions that meet clients’ goals and objectives Not yet demonstrated
3 Presents appropriate broker solution to clients’ request Not yet demonstrated
4 Explains relative fees and charges Not yet demonstrated
5 Collaborates on risk identification Not yet demonstrated
6 Responds to questions, records customer feedback and actions taken Not yet demonstrated
Student resubmission response (if required by assessor):
Assessor feedback: Resubmission required?
No
Part 5: Role play
You will participate in a role play for a maximum of 5 minutes. The role play must be conducted by audio recording. You will need a volunteer to assist you in the role-play.
For your volunteer you need to select an appropriate person who is able to participate in the volunteer role criteria below. The volunteer needs to understand that this is part of your assessment. Provide a copy of the Volunteer Guide in your KapLearn subject to your volunteer so they understand what they need to do in your assessment.
You will not be assessed on your acting ability. You will be assessed on the criteria listed below the task under Assessor feedback.
When starting your role-play recording, ask your volunteer if they give permission to be included in the audio recording. The volunteer needs to agree verbally before the recording may continue.
Task
In this role play, you will play the role of a mortgage broker’s assistant at YS Finance Sydney, a practice that has been established for 10 years and provides advice on business, home and investment loans.
Your manager at YS Finance has provided you with phone numbers of two prospective clients and has asked you to successfully undertake two cold calls.
The purpose of this role play will be to call each prospect and scope whether these two prospective clients are interested in learning more about financial products and services, by speaking with one of YS Finance’s credit representatives.
To successfully complete this role play, you must refer to and follow the ‘Client prospecting guidelines’ located in the Toolbox.
Call 1:
Is to be made to a prospect named Susan Phillips and will lead to a positive outcome; with the prospect wishing to talk with Jim Kelly, a credit representative at YS Finance.
Call 2
Is to be made to a prospect named David Williams.
On this occasion, you will not have a positive outcome with the prospect, and the call will not advance beyond seeking permission to continue with the call.
After completing these two (2) calls, you must record details from each call in the ‘Prospect Register’ below, as per instructions in the ‘Client prospecting guidelines’ in the toolbox, to build up organisational knowledge of prospecting client’s characteristics.
Date Prospect name Date entered in ’Do not call’ register if applicable Outcome or Comments Credit Representative allocated Date that the Credit Representative will need to contact the prospect
19/6/2020
2pm Susan Phillips
19/6/2020
Happy with everything and moving forward, she would like to book in a credit representative to book a meeting with her.
Jim Kelly
29/6/2020 same time-2pm
20/6/2020
David Williams
20/6/2020
Do not call
Not interested in the products we are offering
n/a
n/a
Note: Under the NCCP, credit representatives are authorised to engage in specified credit activities on behalf of a credit licensee — for example, a mortgage broker.
Assessor checklist — role play
Assessor checklist completed after observing the audio recording of the role play Demonstrated or Not yet demonstrated
1 Used appropriate questioning and listening skills to determine prospective client’s needs Not yet demonstrated
2 Successfully undertake cold calling, relationship building and prospecting for sales of financial products and services Not yet demonstrated
3 Used a range of communication and interpersonal skills to gather prospect’s details Not yet demonstrated
4 Informed prospective client of role of advisers and organisation Not yet demonstrated
5 Established a sales response and recorded required information Not yet demonstrated
Student resubmission response (if required by assessor):
Assessor feedback: Resubmission required?
No
Part 6: Role play — Team work
You will participate in a role play for a maximum of five (5) minutes. The role play will be conducted by audio recording. You will need a volunteer to assist you in the role play.
For your volunteer, you need to select an appropriate person who is able to participate in the volunteer role criteria below. The volunteer needs to understand that this is part of your assessment. Provide a copy of the Volunteer Guide from your KapLearn subject room to your volunteer, so that they understand what they need to do in your assessment.
You will not be assessed on your acting ability. You will be assessed on the criteria listed below under the student role.
When starting your role-play recording, ask your volunteer if they give permission to be included in the audio recording. The volunteer needs to agree verbally before the recording may continue.
Task:
You are a mortgage broker who works at XY Mortgages.
You currently have seven (7) clients who are at varying stages in the loan process:
• You have already submitted a loan application for three (3) of them.
• You are awaiting settlement for two (2) of them.
• You are at the stage of finalising the loan application for one (1) of them.
• You have recently been assigned one (1) of them by your manager. You have not yet contacted or met this one.
You have another colleague in your team, who is also a mortgage broker. You both report to the same manager.
Your manager will normally assign clients who come into the practice, between you and your colleague; according to your workloads. However, your manager is currently on leave.
During your manager’s absence, two new tasks have arisen:
• A new client has come to the practice and needs to be assigned to a broker.
• The CEO of the practice, has sent through a request to receive a completed summary report of your team’s activities from the last financial year. This is due within three business days.
In this role play, you are to conduct a team meeting with your colleague, in your manager’s absence. Your volunteer will play the role of your colleague.
In this team meeting you will need to do the following:
1. Discuss with your colleague the status of their loans and ascertain what stage each of their loans are at.
2. Discuss with your colleague how, over the next week, you will both manage these two (2) new tasks and come up with a plan of who will complete each task. Ensure that you encourage your colleague to participate in (and take responsibility for) these tasks with you.
3. Organise a meeting time, in the near future, where you and your colleague can discuss the progress made on these two tasks (note: you do not need to conduct this future meeting).
Remember, you are not being judged on your acting ability. You will be assessed on the criteria listed in the checklist below.
Assessor checklist – role play
Assessor checklist completed after observing the audio recording of the role play Demonstrated or
Not Yet Demonstrated
1 Actively encourage team members to participate in and take responsibility for team activities and communication processes Not yet demonstrated
2 Determine tasks to be done and identify relevant conditions to work autonomously or in team environment Not yet demonstrated
3 Plan work to manage resources, time and priorities Not yet demonstrated
4 Contribute to organisational planning process as required to achieve service improvement Not yet demonstrated
Student resubmission response (if required by assessor):
Assessor feedback: Resubmission required?
No
