Distinguish between the credit provider’s final assessment and the credit review carried out by the credit provider?
Task 7.12The credit application that is forwarded to the credit provider is accompanied by supporting documentation used to verify the information concerning the financial position of the client. List four types of document that are likely to be forwarded. In the case of Ross and Melissa Cooper.No. Mark1. /12. /13 /14. /15. /16. /1
Task 7.13What should be the rules regarding access to client files? Mark /2
Task 7.14There are times that you might suggest to clients that they should have a fixed interest loan for a period. Explain why you would do this. Mark /1
Task 7.15List the information you should include on a client file. Mark /2
Sub-total /11ContinuedTotal /79 Task 8: Steps Taken by the Credit Provider
8 Build and maintain business networks and relationships As indicated, the process of interviewing a client, carrying out a preliminary assessment, and forwarding a credit application to a credit provider should take no longer than two days. The credit provider’s task, however, is more involved and takes longer because there are more matters to consider than the final assessment, which is normally carried out soon after the credit application has been received from the mortgage broker.These matters include having the security valued and negotiating any additional support, checking all details, preparing an offer letter, preparing security documentation, having the loan documentation signed, attending settlement, registering the mortgage and having the mortgage documents stamped.The offer letter is in fact the loan contract the mortgage broker becomes involved once again – to check that the requirements of the loan purpose are met and to ensure that the client understands all terms and conditions.
Task 8.1.The final assessment of the credit application is carried out by an officer of the credit provider, or at a higher level if that officer’s authority is exceeded. What is that officer’s responsibility in terms of the NCCP Act. Mark /2
Task 8.2.Give examples of the information that the mortgage broker may be asked to obtain at the time of the final assessment. Mark /2
Task 8.3. Sometimes additional support, such as a third party guarantee is required in housing loans. Indicate when such support may be required and the matters about which the credit provider should seek to be satisfied. How is the required evidence about those mattersnormally obtained?No. Mark1. /12. /13. /1
Task 8.4. Distinguish between the credit provider’s final assessment and the credit review carried out by the credit provider? Mark /3
Task 8.5. List five of the checks the credit provider would normally perform before preparing an offer letter.No. Mark1. /12. /13. /14 /1 /1
Task 8.6.Why do mortgage brokers become involved once again when the offer letter is forwarded to the client? What legal responsibility under the NCCP Act leads to this involvement? No. Mark1. /22. /2
Task 8.7.List four other matters relating to the offer letter that the mortgage broker should check.No. 1. 2. 3. 4. /1
Task 8.8.Imagine that you are the client’s solicitor writing to the client. In words that the client is likely to understand explain: what happens at settlement; how funds are normally disbursed following settlement;and how the title document is registered.No. Mark1. /12. /13. /1