Certificate IV in Finance and Mortgage Broking

FNS40815 IV in and
RPL Student Kit
Thank you for enrolling in the AAMC Training Group for a Certificate IV in Finance and Mortgage Broking FNS40815.
This document is split in two sections:
Section 1: The first section is relevant to you, the RPL candidate and contains all the information you need for the RPL process.
Section 2: Contains information and forms for your third party assessor.

Candidate information about RPLand relevant forms
Introduction
Recognition of Prior Learning (RPL) is the acknowledgment of skills and knowledge obtained through learning achieved outside the formal education and training system and includes work and life experience including paid and volunteer work and skills attained through leisure pursuits such as musical, mechanical or linguistic abilities.
RPL recognises any prior knowledge and experience and measures it against the qualification in which candidates are enrolled. The individual may not need to complete all of a training program if he or she already possesses some of the competencies covered in the program.
If you wish to gain an exemption via RPL you must submit evidence that demonstrates how you have met the requirements of the subject for which you are applying for an exemption.
It is simply set out, with a covering comprehensive list of instructions at the front of each document, as well as covering instructions for each step of the process, as found in the notes for the Assessor, and notes for the candidate.
Procedures for this qualification
Units of competency
Please note that the units of competency from the Certificate IV in Finance and Mortgage Broking (FNS40815) that you will be assessed for are as follows:
Code
Unit name
FNSFMK505
Comply with financial services legislation and industry codes of practice
BSBITU306
Design and produce business documents
FNSCRD301
Process applications for credit
FNSFMB401
Prepare loan application on behalf of finance or mortgage broking clients
FNSFMB402
Identify client needs for broking services
FNSFMB403
Present broking options to client
FNSINC401
Apply principles of professional practice to work in the financial services industry
FNSINC402
Develop and maintain in-depth knowledge of products and services used by an organisation or sector
BSBWOR501
Manage personal work priorities and professional development
FNSFMB501
Settle applications and loan arrangements in the finance and mortgage broking industry
FNSCUS501
Develop and nurture relationships with clients, other professionals and third party referrers
FNSSAM403
Prospect for new clients
In order for you to be successful in attaining this qualification via RPL you must complete the RPL in two stages:
STAGE 1: Assessor interview
You will need to download the Assessor Interview Request form from your Member Area of the AAMC Training Group website, complete and upload back into your assessment area, along with a copy of your CV/Résumé showing that you have at least two of the last five years’ experience in the Australian Financial Services industry, principally involved in Finance/Mortgage Broking. Your nominated assessor will then contact you at a suitable time for a telephone interview.
At this interview you will be asked a number of questions concerning each unit of competency to determine you have the relevant industry experience to complete the RPL process.
The questions the assessor will ask you are mainly related to your work situation and will include the following aspects of knowledge:
•  Financial legislation, compliance and regulation
•  Loan applications from start to settlement
•  Designing and producing documents using information technology
During the interview if you are unsure of a question or how to respond, your assessor will try and provide the necessary guidance and support. If your assessor deems that you can continue with this RPL process he will note his comments and mark this particular assessment as satisfactory and you can then continue to Stage 2.
If your assessor does not believe you have the necessary skills, knowledge or experience to continue with the RPL application he will advise you to transfer your application to either an online, correspondence or classroom delivery course.  Any monies that you have paid for your RPL application will be applied to your other preferred delivery method and you will only need to pay the difference.
STAGE 2: Providing evidence
These steps are designed to satisfy the evidence requirements of the Certificate IV in Finance and Mortgage Broking FNS40815:
Step 1 – Credit Transfer
You may be able to claim credit transfer for a unit/s of competency that you may have previously completed with AAMC Training or another RTO. If you have been awarded a record of result or statement of attainment for any of the units listed above then please go to the Credit Transfer tab in your Learning Centre and follow the instructions. You will be required to upload a *certified copy of your record of results or statement of attainment. Your credit transfer request will then be reviewed and you will be notified by email if your request has been approved.
Certified documents must:
Be initialled on every page by the Authorised Officer.
Be annotated on the last page as appropriate e.g. “I have sighted the original document and certify this to be a true copy of the original”, and signed by the Authorised Officer.
List the name, date of certification, and contact phone number and position number (if relevant) and have the stamp or seal of the Authorised Officer (if relevant) applied.
*Copies of documents provided in support of an application, or other purpose required by the National Law, must be certified as true copies of the original documents. For a list of persons who can certify documents: http://www.ahpra.gov.au/Registration/Registration-Process/Certifying-Documents.aspx
If your record of results or statement of attainment was obtained through AAMC Training, an uncertified copy will be sufficient as AAMC Training can confirm the authenticity of your unit/s of competency.
Please note: the units of competency on your certificate must be the same (or equivalent) units of competency within the course for which you wish to receive credit transfer.
Step 2 – RPL Application form
Print this document, read it and complete the RPL application form.
Step 3 – Case File
Submit a client case file which must include all the applicable items on the relevant case study checklist.
Step 4 – Third Party Declarer Competency Checklists & Testimonial
You will require a qualified Third Party Declarer who is able to acknowledge your experience in the Finance/Mortgage Broking industry by ticking the check boxes in the Competency lists. The Third Party Declarer is asked to provide AAMC Training a brief history of their industry experience and to produce copies of qualifications held in the Finance and Mortgage Broking Industry.
You are also asked to provide an additional written testimonial from a person who can confirm your experience in the Finance/Mortgage Broking industry. This person must have a sound understanding of the finance industry and your experience.
Step 5 – Upload
Once you have completed the previous steps, upload your completed RPL application via the AAMC Training Members Area. Before you upload your application, go through the checklist below to ensure you have not forgotten anything:
☐  RPL application
☐  Client case study for Mortgage or Plant, Equipment, Motor Vehicle including all associated documents.
☐  All documents specified in the Client case study document checklist
☐  Written testimonial or written reference
☐  Lender’s Cover sheet form (Two cover sheets have been included as a guide)
☐  Third Party Declarer Competency Checklists
☐  Declarations by both applicant and Third Party Declarer
RPL Application
Applicant’s details
Title 
☐ Mr
☐ Mrs
☐ Ms
☐ Miss
☐ Other
Surname:
 
First name:
 
Middle initial:
 
Address:
 
 
Suburb:
 
Postcode:
 
Phone (H):
 
Phone (W):
 
Phone (Mob):
 
Fax:
 
Email:
 
I am a:  ☐ Finance Broker  ☐ Mortgage Broker  or  ☐ both
DECLARATIONS
☐ I hereby wish to apply for recognition of prior learning. ☐ I hereby understand that any confidential or commercially sensitive information the assessor may have access to will be kept private and confidential. ☐ I hereby understand that should any information or documentation need to be taken away from the workplace that private information such as names and addresses will be replaced with fictitious information. ☐ I have read and understand the AAMC Training RPL information. I declare that in making this statement, all details are true and accurate in every detail and that it may be called upon to provide evidence if required in a court of law.
Name of applicant:
     
Signature of applicant:
     
Name of witness:
     
Witness signature:
     
Address of witness:
     
Date of declaration:
     
Case study notes
This case study is required for you to illustrate your knowledge of the loan process, from initial contact with a client to settlement of the loan. It is important to have all relevant information on your client file and supply all necessary information to a lender that will ensure a quick, positive response. The information required for your submission is noted on the Mortgage, Plant, Equipment, Vehicle and Commercial Finance Checklists attached.
The case study checklist must accompany your submission as this will ensure prompt issuance of your Certificate IV. Any omissions will unnecessarily cause AAMC Training to seek the missing data, which in turn can prove costly and time consuming to both parties.
You may submit a sample file/case study of one of your existing clients (i.e. a Mortgage loan application or a Plant, Equipment, Vehicle and Commercial Finance application).
Breach of privacy
Please ensure that you remove any identifying client information to avoid breaching the Privacy Act if you submit a sample file/case study of one of your existing clients. This includes names and addresses, contact numbers, tax file numbers, driver licence, passport numbers, employment records, etc.
Reduce the file size
When lodging your submission it is important to forward the completed finance application and any file notes. However it is not necessary to photocopy the complete file of supporting evidence. AAMC Training will accept the front or pertinent pages of documents, such as:
an Offer and Acceptance/Contract of Sale/Building contract/Council approved plans (Architectural Drawings and detailed are not required)
a Commercial Lease agreement (cover page, the first schedule and signature page)
For this exercise pages of $20 transactions are not required to prove savings evidence. Just a short summation of the savings value and the name of the institution will suffice
the Profit and Loss detail of financial statements
any Taxation returns (show assessment advice and taxable income)
Trust deeds or Company Constitution
Other lenders’ loan statements (latest monthly statement).

Helpful hints for preparing Case Study File Checklists
It is appreciated that by applying for a Certificate IV Finance and Mortgage Broking (FNS40815) by Recognised Prior Learning you are experienced in the industry. You are no doubt aware there have been regular changes to compliance and undoubtedly will be more now that ASIC has become the regulator. This is principally the reason we have illustrated the reasons why you should have a copy of these forms in your client file.
Case Study Instructions: Completing Customer File (Residential mortgage / Plant & Equipment, Motor Vehicles)
As a result of your client interview, completing relevant client documents and loan application for the lender, you are now required to complete the remainder of customer file supporting several of your obligations and responsibilities as a Finance Broker. These important steps being the approval process, documentation, settlement and ongoing relationship management. In areas where you do not have copies of actual supporting documentation, insert a page with the name of the document, an explanation of the document and its purpose. You would include e.g. copy of formal/unconditional approval stating conditions of settlement.
Should you not have all the required forms that appear on the Case Study Checklist, you may access templates from the Useful Resources section in your AAMC TrainingMember Area that you could use in your submission.
You are required to submit your customer as determined by the chosen case study. Therefore your file information must contain the following:
Adding to your Interview Notes – Customer Contact Sheet/Record
You should have already documenting regular communication pre your loan submission. These interview notes incorporate all the correspondence from initial contact to loan preparation and submission. You are now required to provide interview notes from loan submission to post loan application process; with all parties specifically including:
–     Customer
–     Bank/s
–     Referrer/s
–     Government bodies, i.e. Stamp Duty, FHOG/ Revs
–     Property Valuators
–     Settlement Agent
Advice of Loan Approval
Evidence of communication with customer and other relevant parties regarding:
Communication of formal/unconditional approval to customer i.e. lender letter of offer;
Letter to client regarding documentation/settlement expectations;
Communication with Real Estate Agent / Settlement Agent, etc.
Document Sign-Up/Settlement Preparation
Document sign-up checklist and covering letter /communication;
Correctly signed mortgage documents;
Insurance details;
Authority to disburse funds;
Settlement checklist.
Advice of Transaction Completed/Finalised
Communication of successful settlement;
Letter/survey to client asking for client satisfaction feedback on services/support provided. You may wish to ask for referral to friends and family.
AAMC TRAINING DOCUMENT CHECKLIST LOAN APPLICATION PROCESS ASSESSMENT MORTGAGE FINANCE MUST BE COMPLETED & INCLUDED IN YOUR UPLOADED ASSESSMENT
EVIDENCE
ENCLOSED
Y
N
N/A
Evidence of qualifications and experience of Third Party Declarer/Observer



Loan Application Preparation File notes from 1st contact through to settlement in chronological order



Licensed Credit Guide or Authorised Credit Representative Profile



Client Needs Review or Fact Find



Privacy Statement and Consent form



Combined Credit Quote and Proposal



Product Comparison Report (at least three options)



Preliminary Assessment



Costing sheet for Fees and Charges



Fully completed Lender Loan Application or Copy of Online lodgement



Lender’s loan Document Check List (Normally forms part of loan application)



Process Applications for Credit A completed serviceability calculator (refer to useful resources)



Loan Comments/Lender Comments



Evidence of Income (Pay slips, Employers Letter, PAYG Summaries)



Evidence of an Offer & Acceptance or a Contract of Sale or a Purchase contract



Evidence of Council approved plans (House and Land , Off the Plan packages) Plus a Fixed Price Building Contract



Evidence of savings/ equity and other loan commitments



Evidence of Valuation successfully completed



First Home Owners’ Grant application



Anti Money Laundering/Counter Terrorism Financing ID requirements



A Compliance file Checklist



Completing Customer File Fully completed Settlement document pack (Refer to the Settlement File Checklist to ensure all relevant documents are completed and submitted)



Create a customer/referrer database You are required to prepare your data-base on contacts made from this transaction by using your internal CRM or a suitable program i.e. Excel.



NB: Where evidence is required i.e. payslip/offer & acceptance/financials etc., AAMC Training will accept the evidence being typed on a blank piece of paper rather than supplying copies of the required evidence. 
For example: “This represents the payslips for Frederick John Everybody for the periods ending 14th and 28th February 2015.”
A sample of the forms mentioned above can be found in the AAMC Members’ Area under “Useful Resources” (www.aamctraining.edu.au)
AAMC TRAINING DOCUMENT CHECKLIST LOAN APPLICATION PROCESS ASSESSMENT MOTOR VEHICLE & EQUIPMENT MUST BE COMPLETED & INCLUDED IN YOUR UPLOADED ASSESSMENT
EVIDENCE
ENCLOSED
Y
N
N/A
Evidence of qualifications and experience of Third Party Declarer/Observer



Loan Application Preparation File notes from 1st contact through to settlement in chronological order



Licensed Credit Guide or Authorised Credit Representative Profile



Client Needs Review or Fact Find



Privacy Statement and Consent form



Combined Credit Quote and Proposal



Product Comparison Report (at least three options)



Preliminary Assessment



Costing sheet for Fees and Charges



Fully completed Lender Loan Application or Copy of Online lodgement



Lender’s loan Document Check List (Normally forms part of loan application)



Process Applications for Credit A completed serviceability calculator (refer to useful resources)



Evidence of Income (Pay slips, Employers Letter, PAYG Summaries)



Evidence of last 2 years Financial Statements and Tax Returns with annual variances explanation. If Borrower/s self-employed or company, with income worksheet



Evidence of the Offer To Purchase/Suppliers Sales Tax Invoice showing serial numbers etc., to identify title



Evidence of Motor Vehicle Registration Papers (Some lenders require this information)



Evidence of Trade-in equity, Cash Contribution (Receipt) and other loan commitments



Anti Money Laundering/Counter Terrorism Financing ID requirements



A Compliance file Checklist



Completing Customer File Fully completed Settlement document pack (Refer to the Settlement File Checklist to ensure all relevant documents are completed and submitted)



Create a customer/referrer database   You are required to prepare your data-base on contacts made from this transaction by using your internal CRM or a suitable program i.e. Excel.



NB: Where evidence is required i.e. payslip/offer & acceptance/financials etc., AAMC Training will accept the evidence being typed on a blank piece of paper rather than supplying copies of the required evidence. 
For example: “This represents the payslips for Frederick John Everybody for the periods ending 14th and 28th February 2015.”A sample of the forms mentioned above can be found in the AAMC Members’ Area under “Useful Resources” (www.aamctraining.edu.au)
Settlement File Checklist
Students are to provide all the below requested information as per the checklist
The provision of all the information detailed below will ensure prompt issuance of your qualification. Any omissions will cause AAMC Training to seek the missing data which can prove costly to both parties. You must include this checklist in the submission of your assessment.
DOCUMENTS MORTGAGE (M) AND/ORPLANT, EQUIPMENT, VEHICLE FINANCE/COMMERCIAL LENDING (PEVC)
Type
Data
Enclosed
Y
N
N/A
M/PEVC
File Notes from 1st contact through to Settlement in chronological order



M/PEVC
Letters from broker/lender to client advising conditional approval and unconditional approval; noting document / settlement expectations



M/PEVC
Loan/letter of offer from lender



M/PEVC
Borrowers checklist (Document sign-up)



M/PEVC
Correctly signed home loan contract (including transfer of land and mortgage of land relevant to the State.)



M/PEVC
Insurance details – Home Certificate of Currency



M/PEVC
Borrowers Authority and Instructions



M/PEVC
Evidence of settlement related communications between all parties. (i.e. Broker, Conveyancer, Lender, Client) For example: A letter or email showing settlement communications between all parties.



M/PEVC
Letter of successful settlement from broker



M/PEVC
Service Questionnaire or relevant example of feedback from client



Other
 
 



 
 



 
 



 
 



 
 



 
 



LENDER’S COVER SHEET – EXAMPLE A This form is for guidance only and you will need to create your own method. YOUR LETTERHEAD   Loan application for XXXXXX & XXXXXXXXLoan amount $00000000Latest date for approval ……/……/…… Please find loan attached application for the above clients. OPTIONS Reason for loan They have just arrived in Australia They have moved from interstate due to employment transfer They shared first division in Saturday’s lotto Mum & Dad gifted them $80000 They are upgrading Refinancing to use equity for investment or renovations, holidays or for whatever Divorce – marriage split Downgrading- kids left home Employment Just received promotion Changed jobs for more income and permanency Stable employment Interstate transfer Income Single income is supported by Serviceability Assessment Joint Permanent staff for long period and expected promotion. RECOMMENDATION We recommend this application in view of the following: Stable employment Stable address Sound financial position Sound income Nothing adverse known Security is in new expanding area Don’t play Lotto or bet on horses     SIGNED ……………………………………………………              Date ……/……/……
LENDER’S COVER SHEET– EXAMPLE B   YOUR LETTERHEAD   Loan application for XXXXXX & XXXXXXXXLoan amount $00000000Latest date for approval ……/……/…… Please find loan attached application for the above clients. OPTIONS Reason for loan They are purchasing a new front end loader. They have been employed in similar industry and are now setting up their own operation They are renovating their business premises Purchasing a new office communication system integrated into the online network. Refinancing to use equity for investment or renovations, holidays or for whatever Client History/Employment Clients have been self-employed for the past 12 years Wife does permanent/part time work at local nursery Stable employment history (Employee buying car for business purposes) Income Single income is supported by Serviceability Assessment Joint partnership financial statements and tax returns Permanent staff for long period and expected promotion. RECOMMENDATION We recommend this application in view of the following: Stable employment Stable address Sound financial position Sound income Nothing adverse known Don’t play Lotto or bet on horses.       SIGNED ……………………………………………………                 Date ……/……/……  
Explanation of documents required
A sample of the forms mentioned below can be found in the AAMC Training Members’ Area under “Useful Resources” (www.aamctraining.edu.au)
Financial Services Credit Guide/Credit Guide
Along with the ACR’s profile this guide is handed to the clients at initial interview and it sets out the services that are offered along with the Privacy Policy of that organisation and the complaints procedure.
Authority to Act & Privacy Consent Form
The authority to act allows the finance broker to act on behalf of the client when dealing with the lender and other related parties to loan. The privacy consent form allows the finance broker to store and use relevant client information to assist in the loan application process without breaching privacy laws.
Authorised Credit Representative profile
This form is which sets out the Authorised Credit Representative’s profile and authority to act on behalf of a credit licence holder and what products the ACR can introduce to under that authority. At initial interview the clients must be handed a copy.
Data Collection – Business or Personal Consumer Client Needs Review/fact Find
By using a Client Needs Review/Fact Find you will have all the information required to form an opinion as to what type of loan best suits the clients’ requirements. At the same time you are acting with due diligence in asking the clients questions about their financial security in the event of an unforeseen circumstance that causes financial hardship. You have a legal obligation to yourself and the clients to make them aware of the ramifications of an unexpected illness, accident or even death. By signing a Client Needs Review they can accept your offer of a referral to an insurance professional or alternatively decline your recommendation, thereby you have documentary evidence of your professionalism. You do not have to sell Risk Products but you have complied with the requirements under the Duty of Care by having adopted the above actions.
Costing sheet for fees and charges
Now that you have the clients’ details you are in a position to propose a loan scenario. The first thing the clients wish to know is “What are the costs?”  From your own information resources you should be able to formulate an ”Indicative Cost Schedule” as to the purchase price, the additional costs associated with the purchase and the finance costs in arranging the loan. Once you have established the total overall costs you then can deduct the clients’ contribution and arrive at a suggested loan amount. You should, without fail, have the clients sign this form as with the Client Needs Review, so that you as the Broker hold a permanent record of your initial interaction with the clients to defend any complaint from the clients at a later date, should it so happen.
Interview notes
With ASIC now having assumed the regulatory role for the Finance/MortgageBroking industry, a far greater emphasis is going to be placed on Brokers to justify what deal was offered to clients. Did it suit their needs? Was the recommended loan or lender of benefit to the client? Therefore Brokers are going to have to be able to show reasons for their recommendations. A file copy of your interview notes will go a long way to avoid any adverse opinions from any audit that may be undertaken by any aggregator company or ASIC official.
Preliminary Assessment
Based upon your enquiries as to the financial situation, requirements and objectives of your client you are required to conduct a preliminary assessment to determine whether the proposed credit contract/lease is ‘not unsuitable’ for the client. This must be done prior to suggesting the client applies for, or providing assistance applying for a particular credit contract.
Credit Quote and Credit Proposal Documents
These forms may be incorporate into the one document. The Credit Quote outlines the maximum fees and charges payable to the credit representative and licensee for credit assistance. Must be provided before credit assistance is provided. The Credit Proposal document outlines the fees, charges and commissions relating to the particular credit contract or consumer lease and to whom/by whom they are payable.
Statement of Credit/Mortgage Advice
This is the document the client signs giving the Authorised Credit Adviser authority to act on the client’s behalf and also give privacy consent for the personal details to be passed onto the lending institution. It also advises the amount of commission a broker will receive as well as the costs involved in taking out the loan. A copy of this appointment must be given to the client and a copy kept on your file. This document may be a combination of industry known documents as stated above.
Evidence of income
Lenders require documentary evidence of income to support a loan application. This can be in the form of two or three consecutively dated payslips plus a PAYG summary that indicates regular overtime or allowances/commissions.A letter or employment contract from the employer will also suffice in the absence of payslips. The most recent statement of Family Allowance entitlements should also be provided.
Self-employed/ Commercial clients
A copy of the last two years individual’s and company tax returns/financial statements along with a serviceability assessment for self-employed individual/partner.
Signed statement of assets & liabilities (SOP)
This information allows lenders to readily ascertain the financial standing of the applicants.
Cash flow forecast
When you are arranging funding for the larger type loans, whether it is for plant and equipment or say, a commercial factory unit a Cash Flow Forecast is essential as it will assist the lender in appreciating where the business is headed. But remember it will have no bearing on the lender’s decision-making as it will look only at anecdotal evidence.
Serviceability
When submitting an application you are to include a Serviceability Assessment sheet which shows the lender you have ensured the clients can afford the loan. You will find these assessment tools form part of the lenders’ online broker toolkit and are relatively simple to use. When you undertake your accreditation training each lender will provide the facility or you will have access to all the tools through your aggregator.
Copy of the Offer to Purchase/ Suppliers Invoice (Showing serial numbers etc. to identify goods and chattels)
A sheet of paper representing the document will be sufficient evidence. However, most lenders will be required to verify the original document. You will be advised of their requirements when you complete the accreditation courses. This information is vital in proving ownership of the goods.
Copy of the Offer and Acceptance (WA) or Contract of Sale
Lenders need a copy of the completed O&A or COS to verify the purpose of the loan and for the ordering of valuations, if required. You will be advised of their requirements when you complete the accreditation courses. It is also worth noting that some lenders will only carry out a kerb-side valuation when the LVR is 80% or less.
First Home Owners Grant application
Whilst the Federal Government provides the funding for these concessions each State and Territory Government administers the schemes. Therefore so your clients can get the maximum benefits available, your task is to research this area of funding thoroughly by visiting the Office of Revenue in the jurisdiction in which you operate. For example First Home Buyers in WA pay no transfer Stamp Duty on properties purchased for less than $500k. In addition there is $2000 available through the Real Estate Institute for certain applicants. By comparison in Victoria and South Australia a benefit is not currently gained by a lesser Stamp Duty charge but by an additional FHOG grant. So as you can see, your thorough research can provide relief to your clients by you being able to illustrate what total benefits they can receive. These forms are to be completed to accompany your case study files.
First Home Buyers Stamp Duty Concession application
As explained above there are variances in what concessions are available. However notwithstanding the fact that in some areas solicitors/conveyancers or settlement agents handle this aspect of the transaction, we at AAMC Training believe it is up to the Broker to ensure that there is a smooth settlement transition. This will happen if the Broker provides the clients with the necessary paperwork, has it completed correctly and keeps it on file for presentation to the correct parties when settlement is due to take place.
Copy of Motor Vehicle Registration Papers
For the same reasons as stated in item 12.
Private Sale documents
You may not come across this type of loan requirement often, however you will be required to produce additional information such as: An inspection reportA valuation reportA Statutory Declaration from the supplier/owner showing ownership and encumbrance freeVendor ID and bank details.
Broking Commission Tax Invoice (copy)
To allow for payment of commission and GST. Some brokers may have bulk payment processes in place.
Current or other lenders’ Good Conduct statements
This information is self-explanatory and lenders will seek copies of other lenders’ loan statements which show good conduct for periods from 3-12 months. These statements will include details about personal loans, credit cards, hire purchase accounts and even a letter from a Real Estate Agent showing good conduct in paying the rent on the due date. For the purpose of this exercise all you need to do is neatly detail the information on piece of paper showing that it represents the information you have to supply. The same principle applies to providing other lenders’ good conduct records.
Evidence of savings or deposit (trade-in) for contribution to loan
So that lenders can be assured that the borrowers’ financial contribution to the loan transaction is genuine, you are to provide evidence of savings. This can be in the form as described in Section 6 General Lending Criteria.
Landlord’s Waiver
A legal agreement between the landlord and the tenant/lender that shows ownership of goods or equipment remains with the tenant/lender but can be removed by a lender in the event of a loan default.
Fully completed loan application
Let us first accept that all lenders require the same information, however with the layout of their application forms it just appears in different places. You are not only expected to provide the clients’ full personal details, but you are obliged to be honest and frank about the information you are submitting. As a Broker you are also obliged to inform either the lender or the client of any information of which you become aware that may have a material effect on the transaction. If you do not follow this principle you could well become the subject of legal action from either party. The application forms are quite simple to complete provided, however, you have gathered all the information to make it a simple task. There is one area on confusion and that is the completion of the “Declaration of Purpose”. By completing this incorrectly you may jeopardise your clients’ rights under the National Consumer Credit Protection ct 2009.
Lender’s Cover Sheet
Lenders when assessing a loan rely heavily on information provided. They do not have the privilege of sitting down and interviewing the clients. As you have already learnt, Brokers must provide as much information as possible when submitting a loan application, of any nature, to ensure a fair and reasonable decision can be made by the lender. Therefore it is in everybody’s interests to highlight valid points in a Cover Sheet. Shown below this table are two options that tell a tale. Please do not just copy these examples and submit – use your initiative and present a cover sheet along similar lines as we have demonstrated. There will be many and varied reasons why you think an application should be approved so let the lender share your reasons. Don’t make them second guess. If you follow this path, it will stand you in good stead with the lenders and exhibit a standard of professionalism that unfortunately not enough Brokers take seriously. Half measures or the attitude “Close enough is good enough” does not wash in today’s competitive economic climate. Lenders that receive half-baked applications will put them to one side and get on with the fully detailed ones to acknowledge the correct presentation.
Lenders/Broker document checklist
All lenders have a checklist to ensure you have submitted the application correctly with all the supporting documentary evidence. Please ensure this is completed.
Anti Money Laundering/Counter Terrorism Financing ID requirements
Due to criminal activities and money laundering you have to provide the necessary identifying documents to support the application. Where you are dealing with a client’s existing lender, note on your cover sheet that you haven’t supplied the information because client is known to the lender. Some lenders carry out their own verification through their branch network.
Business Registration/ Constitution and/or Trust Deed
Business registration legitimises the authenticity of the applicant. The Constitution and/or Trust Deed reflect the authority of those able to act for and on behalf of the company.

Third Party Declarer Competency Checklists & Testimonial
Your Third Party Declarer must complete all the applicable Core Competency Checklists. The checklists will verify that you are proficient in the area of Finance/Mortgage Broking in which you operate and correspond with the course curriculum.
Acceptable Third Party Assessor (Declarer)
A Third Party Assessor must be someone who possesses sound financial services industry experience in order to act as a suitable referee. It is also important that they have a good understanding of industry legislation and procedures relating to the role of a finance/mortgage broker.
The chosen assessor should hold a minimum Certificate IV in Financial Services qualification, a higher financial services qualification or have a minimum of three years’ experience working with mortgage/finance brokers or in the industry, i.e. Bank Manager/Business Development Manager.
Please note that Third Party Assessors should only comment on competencies listed where they are confident of your knowledge and/or work experience. You should not expect them to make assumptions about your competence and avoid ticking the boxes where you do not possess skills and/or knowledge.
RPL Application
Certificate IV in Finance and Mortgage Broking (FNS40815)
•      To be completed and signed by a duly qualified third party (declarer) of the candidate in question.
•      The person making this statement must provide a brief history to evidence he/she is suitably qualified to make the assessment.
•      The person making this statement must ensure that it is true and accurate in every detail and that it may be called upon to provide evidence if required in a court of law.

Instructions for Third Party Assessor (Declarer)
You have been approached to provide evidence on behalf of an applicant (candidate) wishing to obtain Recognition of Prior Learning (RPL) for the Certificate IV in Finance & Mortgage Broking (FNS40815).
The evidence you are to provide is based on your assessment of the applicant’s suitability to work to a satisfactory level of performance in the Finance and Mortgage Broking Industry.
Before you agree to act as a Third Party assessor please beware that you need to:
Have a sound understanding of the Finance and Mortgage Broking Industry.
Hold a Certificate IV in Financial Services qualification or above.
Have a minimum of 3 years’ experience working with Finance/ Mortgage Brokers or working in the industry (such as a bank manager or business development manager).
For the purpose of this exercise, your main role is to complete a set of competency checklists. Basically the candidate is seeking verification from you for various areas of competence. It is important that you answer fairly and honestly. If you are not confident that the candidate possesses skills and knowledge in particular areas listed please do not tick these items.  
In addition to completing the competency checklists, you will need to:
Sign off a few documents which are part of the candidate’s application.
Sign a statement to confirm your answers are true and correct.
Provide a written reference for the applicant. Please note that a sample referee template has been provided which you can use to help with the written reference.

Third Party Assessor (Declarer) Competency Checklists
This section is to be read and completed by the Third Party Assessor (Declarer)
Applicants should be able to display knowledge and skills of the following points. The third party declarer must indicate competency by placing a ü in the relevant column, either A (for Finance Broker), B (for Mortgage Broker) or C if the applicant is competent in both A and B categories.
Units of competency being assessed (Legislation and Compliance cluster): FNSINC401 (Apply Principles of Professional Practice to Work in the Financial Services Industry) FNSFMK505 (Comply with Financial Services Legislation & Industry Codes of Practice)
Background of the mortgage origination/finance broking industry
A
B
C
 
 
 
 
The origins of the Australian financial services industry
 
 
 
Licensing and registration
 
 
 
Understanding of related industry bodies and organisations as follows:
 
 
 
CAFBA
 
 
 
FBAA
 
 
 
MFAA
 
 
 
FOS
 
 
 
COSL
 
 
 
ASIC
 
 
 
APRA
 
 
 
FIRB
 
 
 
AUSTRAC
 
 
 
ASX
 
 
 
RBA
 
 
 
Mortgage Insurance Companies (i.e. Genworth, QBE etc.)
 
 
 
Relative State Regulatory Requirements
 
 
 
Corporate Social Responsibility
 
 
 
Principals of Sustainability
 
 
 
Triple Bottom Line (TBL/3BL) Reporting
Legislation and regulations
 
 
 
National Consumer Credit Code
 
 
 
Duty of Care
 
 
 
Australian Consumer Law
 
 
 
Code of Banking Practice
 
 
 
Privacy Act
 
 
 
Anti Money Laundering/Counter Terrorism Financing Act
 
 
 
Anti-Discrimination Act
 
 
 
Australian Financial Services Credit Licence
 
 
 
Authorised Credit Representative
 
 
 
Continuing Professional Development/Maintaining Competency
 
 
 
Unconscionable, Deceptive and Misleading Conduct
 
 
 
Dispute Resolution (IDR/EDR)

Units of competency being assessed (Loan application and settlement cluster): FNSCRD301 (Process Applications for Credit) FNSFMB401 (Prepare loan applications on behalf of finance or mortgage broking clients) FNSFMB402 (Identify client needs for broking services) FNSFMB403 (Present broking options to client) FNSINC402 (Develop & maintain in-depth knowledge of products & services used by an organisation or sector) FNSFMB501 (Settle applications & loan arrangements in the finance and mortgage broking industry) FNSCUS501 (Develop & nurture relationships with clients, other professionals, & third party referrers)
Industry terminology
A
B
C
 
 
 
 
Finance Broking Terminology
 
 
 
Real Estate Terminology
 
 
 
Plant, Equipment and Motor Vehicle Finance Terminology
 
 
 
Common Acronyms (i.e.; LVR, DSR, NSR, LMI)
Types of lenders
 
 
 
Building Societies
 
 
 
Credit Unions
 
 
 
Securitised Lenders
 
 
 
Non-conforming Lenders
 
 
 
Mortgage Managers
 
 
 
Private Mortgage Lenders
Types of loans 
 
 
 
Residential Mortgages (Purchase & Refinance)
 
 
 
Owner Occupier Mortgages
 
 
 
Residential Investment Mortgages
 
 
 
Bridging Finance
 
 
 
Residential Business loans
 
 
 
Reverse Mortgages
 
 
 
Deposit Bonds
 
 
 
Non-resident lending
 
 
 
Commercial Lending
 
 
 
Hire Purchase
 
 
 
Consumer Mortgage
 
 
 
Financial Lease
 
 
 
Chattel Mortgage
 
 
 
Novated Lease
 
 
 
Operating Lease
 
 
 
Rental Finance
 
 
 
Margin Lending
 
 
 
Factoring/Debtor Finance
Loan characteristics
 
 
 
Standard Variable Rate
 
 
 
Fixed Rate Loans
 
 
 
Lines of Credit
 
 
 
Construction loans
 
 
 
Split facilities
 
 
 
Interest only
 
 
 
Interest in advance
 
 
 
Lo-Doc Loans
Other loan features
 
 
 
Redraw facilities
 
 
 
Mortgage offset accounts
 
 
 
Professional packages
 
 
 
Fee free savings/cheque accounts
Bank peripherals and our obligations
 
 
 
Credit/Debit cards
 
 
 
Cheque and savings accounts
 
 
 
Other lending departments
 
 
 
Term deposits
Products and services
 
 
 
Comparison with competitor products
 
 
 
Evaluate different approaches to selling in competitive market environment
 
 
 
Match appropriate product to customer needs
 
 
 
Regularly review products and services
 
 
 
Systems in place to keep up with emerging trends / product knowledge
Risk management products
 
 
 
General insurance
 
 
 
Financial planning
 
 
 
Life insurance
 
 
 
Total and permanent disability insurance
 
 
 
Income protection insurance
 
 
 
Trauma insurance
 
 
 
Mortgage protection insurance
 
 
 
Gearing
General lending criteria
 
 
 
Acceptable forms of income and verification
 
 
 
PAYG
 
 
 
Self employed
 
 
 
Government pensions
 
 
 
Family payment
 
 
 
Child support
 
 
 
Rental income
 
 
 
Guarantor/s
 
 
 
Other income/Allowances (i.e.; superannuation payments/living away from home allowance)
Supporting documentary evidence required for all loan applications
 
 
 
Additional documents required for self-employed applicants
 
 
 
Additional documents required for refinancing
 
 
 
Additional documents required for construction loans
 
 
 
Evidence of genuine savings
 
 
 
Acceptable forms of security
 
 
 
Residential
 
 
 
Investment
 
 
 
Vacant land
 
 
 
Construction – owner builders/non owner builders
 
 
 
Rural residential
 
 
 
Commercial property
 
 
 
Developments
 
 
 
Studio apartments
 
 
 
Serviced apartments
 
 
 
Display homes
 
 
 
Company title
 
 
 
Unacceptable forms of security
 
 
 
Loan to value ratios
Reading and understanding financials and corporate entities
 
 
 
Financial returns
 
 
 
Balance sheet
 
 
 
Profit and loss
 
 
 
Self-employed borrower/s
 
 
 
Sole trader
 
 
 
Partnership
Nature and formation of companies
 
 
 
Contract Law
 
 
 
Memorandum & articles of association
 
 
 
Family trusts
 
 
 
Discretionary trusts
 
 
 
Unit trusts
 
 
 
Non-resident trusts
 
 
 
Trust deed
Calculation of fees, charges, grants and concessions
 
 
 
Property purchase fees
 
 
 
Loan establishment fees
 
 
 
First home buyers grant (including any bonuses and /or concessions)
 
 
 
Other concessions/employee benefits (ie; defence force/salary sacrifice/living away from home allowance)
 
 
 
Mortgage insurance
 
 
 
Refinance costs
 
 
 
Ongoing fees
 
 
 
Establishment fees
 
 
 
Valuation fees
 
 
 
Property purchase stamp duty
 
 
 
Mortgage stamp duty
 
 
 
Solicitor/settlement agent fees
 
 
 
Equipment Finance (where applicable)
Thought process for application and assessment
 
 
 
Sufficient verification/research of client’s situation/requirements
 
 
 
Recommendation offered is ‘not unsuitable’ for the client
 
 
 
The seven C’s of credit addressed
 
 
 
Statement of position
 
 
 
Risks and mitigants
 
 
 
Qualifying rates (debt servicing/net surplus)/loan serviceability
 
 
 
Lenders mortgage insurance (use of calculator and understanding of policy guidelines)
 
 
 
Veda advantage and credit challenges/issues
The Loan Process: From interview to settlement
 
 
 
The application process (Process from first contact to post settlement)
 
 
 
Credit guide
 
 
 
Client needs review/fact find
 
 
 
Preliminary assessment
 
 
 
Credit quote
 
 
 
Credit proposal (disclosure) or statement of credit/mortgage advice
 
 
 
Costing sheet (includes all government and non-government fees/charges)
 
 
 
Loan serviceability calculator/s
 
 
 
File notes (records or client interaction/discussion/process kept in system/file)
 
 
 
Lenders checklist/s
 
 
 
Loan submission template (notes to the lender)
 
 
 
Anti-Money laundering & counter terrorism/identification requirements
 
 
 
Submission to the financier (complete application & supporting documents)
 
 
 
The approval/decline process
 
 
 
Documents for settlement explained/executed
Settle applications and loan arrangements
 
 
 
Settlement process – client is kept informed of all details throughout the process
 
 
 
Discharge authority
 
 
 
Documentation and other settlement issues are in order
 
 
 
Pre settlement conditions are met
 
 
 
Second mortgage consent
 
 
 
Registration of title/securities – ensuring any conditions are met
 
 
 
Transfer of title
 
 
 
Drawdown/disbursement of funds
 
 
 
Adequate storage and management of client information
General Understanding
 
 
 
Loan arrears/default
 
 
 
Repossession/collections
Marketing, relationship building and effective communication
 
 
 
Prospecting for new clients
 
 
 
Building relationships with third party referrers (ie; financial planners, accountants etc.)
 
 
 
Marketing your business
 
 
 
Time management
 
 
 
Goal setting and planning
 
 
 
Telephone techniques (having a useful/professional script to introduce the business, yourself and request relevant information to effectively deal with the enquiry)
 
 
 
Decision making and problem solving
 
 
 
Overcoming objections/conflict resolution
Units of competency being assessed: BSBWOR501 (Manage personal work priorities and professional development)
A
B
C
 
 
 
 
Establish personal work goals
 
 
 
Smarter goals
 
 
 
Set and meet own work priorities
 
 
 
Develop & maintain professional competence
 
 
 
Undertake participation in networks to enhance personal knowledge, skills and work relationships
Units of competency being assessed: FNSSAM403 (Prospecting for new clients)
A
B
C
 
 
 
 
Finding prospects & planning a prospect strategy
 
 
 
Understanding prospects needs
 
 
 
Prospecting methods
 
 
 
Establishing rapport
 
 
 
Managing prospective customer & client information
Units of competency being assessed: BSBITU306 (Design and produce business documents)
A
B
C
 
 
 
 
Use of computer and software programs i.e. Windows , Microsoft or other applications
 
 
 
Use other technology devices such as mouse, keyboard, printer, scanner etc.
 
 
 
Maintaining a client database
 
 
 
Gathering client data and/or use of CRM
 
 
 
Storage, access, use and maintenance (validity/integrity) of client information
 
 
 
Use correct style, layout, format and design
 
 
 
Use help, manuals or other services to help overcome technical difficulties
 
 
 
Proof read document for errors in design, spelling, language etc.
 
 
 
Complete document production within designated timelines
 
 
 
Save documents in accordance with organisational principles
 
 
 
Design and produce a minimum of 3 completed business documents, using at least 2 software applications in the production of each document
DECLARATIONS
APPLICANT
I declare that in making this statement, all details are true and accurate in every detail and that it may be called upon to provide evidence if required in a court of law.
Signature of applicant:
 
Witness signature:
 
Name of witness:
 
Address of witness:
 
Date of declaration:
 
THIRD PARTY DECLARER
In my opinion the applicant has sufficient knowledge and skills in the competencies required.  I declare that in making this statement, all details are true and correct and that I may be called upon to provide evidence if required in a court of law.
Signature of third party declarer:
 
Name of third party declarer:
 
Witness signature:
 
Name of witness:
 
Address of witness:
 
Date of declaration:
 
Third Party Written Reference/Testimonial
The applicant is required to obtain a written reference (testimonial). This can be completed by you or another qualified Third Party Declarer. Below is a template containing some questions that are sought by AAMC Training in order to determine whether the applicant has sufficient industry knowledge and experience to obtain RPL.
Please develop a written reference that addresses the applicant’s abilities based on these questions. Referees should provide as much detail as they are able to and attach additional sheets if necessary.
RPL Application Third Party/Business Reference (Template)COMPANY LETTERHEAD Date To:  The Senior Assessor       AAMC Training Group       PO Box 513       BALCATTA WA 6914 Dear Individual for who reference provided:    CANDIDATE’S NAME Please detail: How long you have known the applicant. The capacity and extent of your business relationship with the applicant. Why you consider the applicant to be capable of carrying on the business of a finance broker with the general public.Why you believe that the applicant reasonably understands the duties and obligations imposed on them by the current regulatory controls.Please indicate the type, scope and extent of applicant’s finance broking experience in the last 2-5 years.Please indicate the extent of applicant’s experience with the use of technology (such as use of word, excel and other software applications) in the last 2-5 years. Should you require any further information kindly contact me at (08) 00000000 orme@referee.com.au Yours faithfully A RefereeJob Title

Third Party Assessor Submission Checklist
Please make sure you provide evidence of the following in your individual capacity:
☐  Evidence of industry qualifications (e.g. Cert IV)
☐  Third party assessor resume detailing work history and experience
Please ensure you complete the following in respect of the candidate’s RPL application:
☐  Candidate’s RPL application
☐  Candidate’s Third Party Declarer Competency Checklists
☐  Declarations by both applicant and Third Party Declarer
☐  Written reference (as per example)

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