WHS Final Assessment :
Please note: It is a requirement for students to make their case study submission using this electronic assessment booklet only. At no time may you alter, remove questions or change the format of this assessment booklet. Any submissions made in another format or document may not be accepted, ie “Pages” from Apple devices will not be accepted or altered booklets. If you are completing the course via various computers, please save the one booklet on a USB so you can send the submission in using the one file.
Please insert your NAME, DATE and the Case study assessment booklet Version Number (This is found on the bottom of the footer of this document. ie; VR221122) on the first page of your Assessment Booklet.
Answering Assessment Questions
This Assessment Booklet contains blank spaces for following assessment answer responses:
- Short Answer case study questions including any “letters”/”emails”, screenshots you need to create as part of your assessment tasks
When submitting the Assessment Booklet for marking, Please ensure that the entire booklet is completed before uploading to the Case study section of your E-learning portal.
Short Answer Questions
Using the space/s provided, please complete your answers making sure to:
- Please restrict your answers to preferably no more than approx. 300 words per question. There will be no penalty if you go over or under the word count.
- Please include any calculations that you have used to reach or justify your answer/s
Students undertaking the course must exhibit a range of skills in order to be deemed “competent” in their course.
These skills include:
- Understanding a question.
- Possessing knowledge about the issue, which in some assessments includes locating information from references externally and documenting them
- Providing an answer, this shows personal understanding of the assessment task/questions
Referencing Your Answers
Please make sure that all assessments are documented in a way that exhibits your personal study and/or research. To that end, would you please acknowledge all material and sources used in the presentation of your assessment whether they are books, articles, reports, Internet searches, or any other document or personal communication. For example if;
- An idea is sourced; reference it e.g. (Bagra 2010).
- You are directly quoting, wrap it in quote marks e.g. “Tom Horner sat in a corner” (Peters 2007 page 7).
- You are quoting from the internet include quote marks and the web reference e.g. “ban on conflicted remuneration structures including commissions” <http://futureofadvice.treasury.gov.au/content/Content.aspx?doc=reforms.htm> accessed on the 28th of December 2021..
Please note that no more than 5% of direct quoting, which must be referenced, is deemed to be acceptable and no amount of direct quoting without referencing is deemed acceptable. Any direct quoting should form only a small portion of any answer and the answer should demonstrate the student understands and can interpret the question and provide an appropriate answer.
Whilst this may require more work for you, we hope you will understand that we are trying to maintain high standards and support your progression into further qualifications.
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No part of this assignment for the above course has been copied from any other student’s work or from any other source, except where due acknowledgment is made in the text. No other person has written any of the assessment responses on my behalf. (IIT take any form of cheating or plagiarism very seriously). At the discretion of the IIT Assessor and CEO a student may be expelled if any breach has occurred. Furthermore, the assessor may determine that additional assessment tasks may be required if a student has not demonstrated they meet competency.
Full Name: Date:
*All learner E-booklets in your portal must be read properly to be able to answer these questions successfully.
PART A: Recommended reading- Introducing the Mortgage Broking Profession
Short Answer Question 1
Your boss Millicent Holmes asks you to induct a new employee, Ying Hsiung. Accordingly, you meet Ying and explain that you will give her a tour of the office facilities and introduce her to key personnel. Within the first fifteen minutes of your introductory tour around the office, Ying burns her hand on the coffee machine, catches her hand woven, fair-trade linen scarf in the shredding machine and cuts her leg on a filing cabinet drawer that was left ajar. Once you return Ying safely to her work station, you report the mishaps to Millicent and return to your desk.
Just as you are about to stop for lunch, Millicent informs you that she has just had a conversation with Ying. Apparently, Ying, a hardened university activist, was rather vocal not only about the damage to her Oxfam scarf but also about the office’s carbon footprint and lack of basic recycling protocols. To follow up on the issues Ying raised, Millicent tells you she reviewed all WHS documentation (previously OHS) and noted the office’s lack of policy regarding sustainability.
- Write an email to colleagues using the below blank box.
- Outline the implications of WHS legislation (previously known as OHS), regulations and policies.
- Explain how these relate to organisational requirements and work practices.
- Include links to helpful documents/websites you have sourced.
- Encourage staff efforts and contributions.
- Calculate the cost of making the workplace safer in light of the incidents that occurred during Ying’s induction, ensure that you have addressed all the issues that arose. Note: Include some relevant costs in your answer.
- In an email (use the blank field below) provide feedback to Ying on her first day’s work remembering to use communications to show that you encourage, value and reward individual and team efforts and contributions. Ensure you identify and resolve problems which might impede her performance. Part of your letter must include your full name at the bottom of the letter and your actual email address.
- You admit to yourself you felt annoyed at Ying when she first started as she wasted a lot of your time not only in the induction but as a result you now have ongoing responsibilities related to workplace health and safety. You realise that she is probably not the sort of person you would choose as a friend. What new way would you introduce to improve work relationships with Ying?
- How would you monitor your work relationship with Ying?
- Explain what the following signs may mean? (Use your initiative to answer this question if you do not recognise the exact symbols below)
Short Answer Question 2
Recommended reading- Understanding the Industry and the Economic Environment and Legislative and Regulatory Frameworks
Over the past six months, Ying has come to think of you as her mentor. Feeling insecure about her product knowledge and lacking confidence in her interpersonal style, she approaches you for guidance on how to nurture professional relationships and how to maintain in-depth knowledge of industry trends. You explain that these are common concerns among inexperienced and experienced mortgage brokers alike. She has every reason to feel overwhelmed by the demands of the role. While you want to support her, you have a client waiting. As such, you ask Ying to email a list of specific questions and offer to answer them in point form when you have a free moment.
- Ying’s questions are:
- I don’t know when I should negotiate with a client.
- When should I try to persuade a client to adopt a financial strategy? (This area relates to the loan process. Consider this from the perspective of communicating effectively, to ensure that all the client’s concerns are addressed)
- When should I use hard versus soft sell techniques? (Explain both of these techniques in your response)
- My friend, Michelle Mosiere has a business. She wants to renovate the premises but needs additional help to finance the improvements. She already has a mortgage with Me Bank and a savings account with ANZ. Could you quickly search the internet and tell me what you come up with via an email ensuring to sign off with your name?
- Will she have more bargaining power if she applies for a loan with either of these banks?
- Are there more competitive products out there? I am particularly interested in which characteristics of which products you find most favourable and why. Note: you can use comparison sites via the internet to help you answer this question e.g., mozo.com.au/home-loans
- Can you give me a list of the consumer reports and industry information bulletins that you read to keep up to date with new products?
- Do they help you understand market and consumer trends?
|Yes, these sources can provide information on market and consumer trends in the financial industry. Financial Review and major bank websites may publish reports and analysis on the current state of the market, consumer behaviour and expectations, and other relevant data. The MFAA website (Mortgage and Finance Association of Australia) can also provide insight into the latest developments and trends in the mortgage and finance industry in Australia. However, it’s important to keep in mind that this information should be used as a reference and should not be the sole basis for making financial decisions.|
- If not, how do you keep your finger on the pulse?
- What do I do if Michelle doesn’t like the options, I give her?
- How do I overcome her resistance to your good advice?
If Michelle doesn’t like the options, I have given her, I can take the following steps:
- Are there any laws, policies or guidelines I have to keep in mind? (Provide examples of these in your answer)
Short Answer Question 3
refer to Student Credit Guide Assistance (This document is in your portal under supporting resources).
As part of a team, you have been requested by So Sweet organisation to produce a Credit Guide. Your role is to emulate the credit guide, which is located on the e-learning platform under supporting documents called “Student Credit Guide Assistance”.
- You must use your own address and phone number as the office address and phone number
- Your date of birth will be the Australian Credit Licence Number i.e. ddmmyy
- Include a footer in the document to show where the document is stored electronically.
- The document must be named so that the content and author are easily identifiable.
Hint; you do not need to create from scratch the credit guide, simply use the document in your portal as the template and only add the specific information as per instructions in the question above and format it as per instructions below from the Style guide.
Use the following Style Guide to prepare the Credit Guide
Heading 1 Main headings – Calibri 16pt, Bold
Heading 2 Sub-headings – Calibri 11pt, Bold
Normal Normal text – Calibri 12 pt. at 1.15 spacing
Signature – Lucida Handwriting 16 pt.
- Date format – Write the date number in digits, the name of the month in words and the year in digits, for example 21st August 2009 not 21.8.2009
- When writing numbers in a paragraph or letter – From zero to nine, use words rather than digits and from 10 and above use the numbers themselves.
- Colour – Unless otherwise directed, do not use colour or highlighting.
- Numbers style is Arabic 1, 2, 3.
- Bullet Style as used in this document
- Spaces after full stops or other punctuation marks – Leave only one space.
- Letter Margins – must be 3.5 cm on both sides.
- Indents – Do not use indents and apply block formatting to all documents.
- Paragraph spacing – Set to add space before and after each paragraph.
- Text spacing – All text spaced at 1.15
Short Answer Question 4
Recommended reading- Internal and Organisational Frameworks and Customer-Related Policies
One afternoon, Millicent asks if you would help with a client. She introduces you to Bob Butler who is one of Ying’s clients and then Millicent exits the room. You invite Bob to sit down and ask him how you can help. Bob, who is 80 years old, launches into a tirade. You are able to move past his emotion and begin to determine whether there are genuine causes for what appears to be a pressing complaint. Firstly, according to Bob, Ying has failed to return Bob’s phone calls for the past two weeks. This means that Bob has been experiencing great difficulty in obtaining a refund of the brokerage fee. Bob wants a refund because Ying failed to explain the terms and conditions of the prospective loan and because she refused to answer his questions. According to Bob, when his ‘solicitor friend’ read the fine print, the loan was of an ‘interest only’ nature. Bob claims he specified that he was not interested in this kind of loan. He later found out that the other product Ying had recommended was out of date. Ying also refused to comment on the impact of an easement that appeared on the title of the property. As an aside, Bob notes an administrative error in the invoice which he considers to be irrelevant because, in his words, he has “no interest in paying an incorrect invoice for an incorrect product rendered through inadequate service by an incompetent and inept broker”.
When Bob finishes venting, you explain that Ying was in a car accident and has been on sick leave for two and a half weeks. You immediately apologise for the firm’s oversight and failure to divert her phone calls, adding that you forwarded an email to Ying only this morning so that you can guarantee her ‘out of office’ reply is active. Bob however is from an old school mentality and uses Australia Post or fax rather than email. Believing you are making excuses for your colleague, Bob appears unimpressed. Thankfully, at that moment Bob’s mobile rings. He looks at the caller ID and tells you it is an important call. You offer to return in five minutes to continue the discussion.
You go straight to your office and access the ‘Credit Policies and Processes Manual’ which are available on the portal. You read the ‘Code of Conduct’ to determine what is expected of both yourself and Ying as finance/Mortgage broking advisors. You also search the document for two key words; ‘dispute’ and ‘complaint’. The computer does not return any hits for either word. Given the time limit, you resign yourself to having to remember basic dispute resolution protocols from last week’s in-house training session. You analyse the situation as you know it and prepare yourself to continue dealing with the complaint.
- Make a list of bullet points to summarise your understanding of Bob’s complaint and to remind you of the issues you need to discuss.
- What are the procedural requirements Ying and yourself need to follow under the code of conduct, which are relevant to this case?
- What are the key issues and how are you going to address them? Consider Ying’s actions, Bob’s expectations, Bob’s and Ying’s rights, basic dispute resolution procedures, and opportunities you can develop to enhance the quality of service your firm provides.
- Put yourself in Bob’s shoes. How are you going to empathise with him?
- Which follow-up questions will you ask Bob?
- How will you explain the relevant dispute resolution schemes, services and governing statutes in plain English?
- When you return to the conference room, Bob demands you give him Ying’s contact number because his complaint is with her and not with you.
- What is your response?
- Which details of Bob’s complaint would you be willing to share with Ying upon her return to the office and why?
Write an email to Millicent to document how you handled this matter. Also, identify ways that you believe the office’s processes and standards can be improved as a result of the issues Bob raised.
- (Take a screen shot of the email for this assessment task, ensuring you include the email address it is being sent from. You can copy and paste it into the empty box below).
- How did you monitor Bob’s level of satisfaction during your conversation? What signs did you look for to determine whether Bob left a satisfied customer?
Short Answer Question 5
Recommended reading- Understanding Loan Products and Managing the Loan Application Process
Bob is pleased with the way you handled his complaint and he recommends you to his 45 year old son Basil. Basil Butler is a Management Consultant who is living and working with his wife Daisy in Manhattan. Basil sends you an email, explaining that his 41 year old wife is expecting triplets in six months’ time. They plan to return to Melbourne next month and take up residence in their old warehouse apartment in Fitzroy. They need urgent help because their neighbour is planning to sell her adjoining apartment, which they wish to secure. Daisy loves her old place and dreams of extending their living space by acquiring and renovating the neighbour’s apartment. She envisions demolishing part of the shared wall to join the two apartments into one large, liveable space for a family of five.
Basil’s firm is relocating him to the Collins Street office. Daisy, however, is a contractor who has successfully completed a series of projects for Basil’s firm. She has been self-employed for 10 years and does not intend to work for the next five years. Basil earns $200,000 p.a. and Daisy earns $130,000. They owe $280,000 on the Fitzroy apartment, but they own a beach house in Portsea outright. The beach house is valued at $650,000. With a penchant for luxury cars, they also have $60,000 to repay on their BMW and $10,000 on the vintage MG. They have put the majority of Daisy’s earnings into her superannuation fund, which has now accrued $400,000. Basil is unsure how much is in his superannuation fund. Sadly, they invested the bulk of Basil’s earnings in a share portfolio which crashed with the global financial crisis. The portfolio dividends only paid $5,000 last financial year. Together, they have $127,000 in a savings account and $50,000 invested in a long-term deposit. The reserve price on the neighbour’s property is $510,000, however, she is prepared to sell it for $495,500 if she does not need to engage a real estate agent and if they will commit to a 30-day settlement. She has given Basil and Daisy the option of a private sale and two weeks in which to make her an offer. As she is divorcing, she is not prepared to extend the time to allow Basil and Daisy to secure finance in Melbourne in person.
Basil and Daisy are too busy packing up their Manhattan loft to search for finance options. They want you to find a suitable loan with attractive terms and arrange all the necessary paperwork. Timing is their utmost concern.
- Respond to Basil’s email by taking the following steps:
- Analyse Basil and Daisy’s financial position based on the extent of their disclosures. Use a financial calculator or relevant software systems to help calculate their personal and financial situation. Note; good calculators can be found online e.g. https://www.genworth.com.au/serviceabilitycalculator-prd/201703
- or See supporting Documents in your e-learning portal for “Serviceability Calculator” examples. *Upload that Financial Calculation to your portal by saving the calculation you have created and uploading it with the case study booklet when completed.
- Outline the relevant processes for proper execution of loan documentation and determine whether you will be able to implement the necessary actions within the neighbour’s timeframe. Also note whether there is any need for specialist advice or involvement from other main sectors of the financial services industry in this case.
- Describe how you will submit the documentation to the appropriate lender in an appropriate manner to protect client confidentiality.
- Research products and additional industry information, then apply your industry knowledge to the current situation. Synthesise this information into a clear and concise format (e.g. short report or proposal in the below box) so that Basil and Daisy can make an informed decision.
- Write an email to Basil and Daisy to establish and confirm their priorities:
- Establishing their risk tolerance and determining their investment goals and expectations.
- Ask for any additional information you require to complete your analysis in accordance with your firm’s credit policy.
- Provide Basil and Daisy with an overview of the three best products you believe are most suited to their needs. Be sure to discuss the strengths, weaknesses, benefits and risks, fees and charges attached to each product.
- Write a confirmation email to Basil outlining the following:
- Basic requirements of the loan, including the amount, term and interest rate.
- Disclose whether you have a strategic and commercial relationship to the recommended product.
- Outline which documents you have attached as per compliance requirements.
- Describe the appropriate timing of events in the loan approval process. Check your writing for accuracy and readability.
- Download and complete the So Sweet Loan Application document (This is found in your IIT e-learning platform supporting documents) Basil and Daisy require the document to meet the information accurately. It must reflect their financial situation, personal information and complies with lender requirements and guidelines.
- Create a client record using the second tab of the loan application excel. Use the details from the loan application to complete this and add any other information here that you believe would be helpful in this client record.
- Describe how you are going to prevent fraud and verify Basil’s and Daisy’s identity/signature and their other undertakings when you are not able to meet them person.
Short Answer Question 6
Recommended reading- Understanding Loan Products and Managing the Loan Application Process
You begin work at your new place of employment. One of your key responsibilities is to process applications for credit. Your new manager, Robson Mischkulnig, is aware of your background as a mortgage broker and wants to draw upon your existing knowledge base. As such, he asks you to bring in the last credit application you managed to help train you into your new role.
Equipped with Basil and Daisy’s application, you begin one week of induction. You are given a copy of the ‘Sample Credit Policies and Procedures Manual’ and told these are the guidelines that inform your day to day decision making. Supplementing the manual are other protocols and laws, such as the National Credit Act. You are told that in this office, decisions to reject or accept an application are formed on the basis of two criteria; credit policy and the total credit assessment, which you should conduct. Any decisions to advance funds or extend credit that fall outside your approval or limits of authority must be referred to relevant approving personnel. In your case, this is Robson. You are expected to prepare and forward your recommendations to accept or reject applications to Robson promptly and in accordance with the organisation’s procedures. Of course, any required security must also be attached. Your trainer emphasises another key responsibility for those providing credit and credit reporting services. That is to keep the records system up to date. This means recording and monitoring file and record movements as well as maintaining the records according to legislative requirements and organisational policies and procedures.
Having worked through the essentials, your trainer throws you in the deep end and asks you to follow the procedures and process the sample credit application you brought with you. To test whether you are competent, you are given the following questions to complete.
- Under what circumstances would you be expected to refer your decision to Robson?
- Provide financial and legal reasons including the security used to justify your decision and present them in a format that Robson can use to review your decision. (Use their financial details previously provided, so that you can explain to Robson why you believe this loan should be approved)
- **Refer to the “So Sweet Loan application” document in your supporting resources in your portal) **This is the excel you used in Question 5. Using the tab called Updated client record, copy your answer from Part B above into the highlighted area on the application excel.
- Outline the steps you would take to monitor file and record movements.
All of these Part B questions relate to the extra information given below for your clients Peng and Mia:
As part of your marketing, Peng and Mia, who live in the same suburb as you, come to your office and during the initial interview with them, you establish the following facts:
- After migrating into Australia, Peng and Mia, a young couple originally from Taiwan, obtained their permanent residency status and have settled in the same State or Territory as you to run a small bakery. Both have intermediate English language skills.
- They have saved $95,000 in the last two years and now want to obtain a mortgage loan to buy their first property which is situated in the same State or Territory that you live in.
- They would like to buy a one bedroom unit, which was built 6 months ago. The cost of the unit is $410,000.
- They may consider having a baby in the near future, which may cause them to consider a larger property.
- They are concerned about whether they satisfy the lender’s income requirements because they don’t have stable salaries. That being said, they earn good salaries and a small profit from their bakery business. Research on the internet to determine which lender is likely to treat them more favourably.
- Peng and Mia would prefer not to pay any principal in the early years of their loan, if possible. Instead, they want to make further investments in their business to grow it.
Short Answer Question 1
Are your clients eligible for the First Home Owner’s Grant or stamp duty exemptions? They plan to purchase property around the same location as yourself.
Access the most recent figures regarding the information about their eligibility from a relevant website.
Include that website link and the most recent information in your response.
Include in your answer any other government grants and schemes available in your state. (Such as; Family home guarantee).
Short Answer Question 2
What documents would you request from your clients given their application for a mortgage loan? In what way do these documents meet organisational requirements?
Short Answer Question 3
When serving this young couple, how would you fulfil your responsibilities as a mortgage broker under the anti-money laundering legislation?
Short Answer Question 4
Given the fact that your clients have poor to adequate English language skills, what would you do to avoid committing unconscionable, misleading or deceptive conduct?
Short Answer Question 5
Using the internet to find the most current loan products, decide which sort of a loan you would recommend to your clients and explain why. Please specify the loan type, lender, interest rates, any fees and strengths and weaknesses of each loan type.
Short Answer Question 6
Would you recommend a portability feature within the loan for your clients?
Short Answer Question 7
Calculate the loan-to-value ratio and discuss whether a lender would be prepared to lend your clients their desired amount on the basis of the information they have provided.
Short Answer Question 8
What would be the monthly payments of an interest only loan be if the interest rate was 7% per annum?
Short Answer Question 9
What would be the initial monthly repayments if you recommended a variable loan (principle and interest) if the interest rate was 7% and the loan term was 25 years?
Please review the illustrated example in chapter 5 for this calculation.
Short Answer Question 10
How would you charge your clients? Please detail your remuneration arrangement in full in an email to your clients, ensuring to sign off with your name and your own email address.