Transcript Document

MORTGAGE FINANCE
Industry Unit Standards
Project deliverable Report 2.2
Contents
• Unit standards scope findings
• Unit standards titles and specific outcomes
• Unit standards linked to a skills hierarchy for Mortgage Finance
9 July 2002
Rachel Rozentals-Thresher
[email protected]
083-268-6607
Findings from original scope exercise
This table represents the knowledge and skills gaps identified in the original scope exercise. The scope
details were reviewed and accepted by the banks prior to the drafting of the standards. The draft unit
standard number meeting the identified gap is presented for easy reference. On the next page the unit
standards are also arranged in a basic skills hierarchy which illustrates the relationship between the
existing and the new draft unit standards.
General Mortgage Finance Knowledge and Understanding
Legal Considerations
relevant in Banking
Buyer’s
perspective
Buying and
Selling
Property
1,2
Bank’s
perspective
1,2
7
Financial considerations/
implications relevant to
Banking
Buyer’s
perspective
9
Bank’s
perspective
9
Building
7
Bonding
4
4
9
9
Repayment
-
-
9
9
Default
4,6
4,6
6
Only relevant to
properties in
possession
Only relevant to
properties in
possession
Only relevant to
properties in
possession
7
7
6
Repossession
Reselling and
Refinancing
Only relevant to
properties in
possession
Credit
Conveyancing Product
and
Options and
Registration Parameters
Credit
Assessment:
• Parties and
their roles
• Assessment
of affordability
of loan
• Terms
• Analysis of
supporting
security
• Suitability of
property
• Applicable
unit standards
US 3, 4, 7,
10, 11 & 12
• Jargon
• Process
• Timing
• Fees
• Documents
• Applicable unit
standard US 5
• This is
specific to
the Banks
• Calculation
of interest,
repayments
and
repayment
terms
• Applicable
unit
standards
US 7 & 9
Client
Service
• Additional
gaps
identified
during the
drafting
phase
• Guide
client
through
application
US 8
• Guide
client
regarding
Mortgage
Finance
options
US 7
• Guide
client
regarding
affordability
US 9
Draft Unit Standards (under review for Mortgage Finance)
Unit standard Title
Level
Credits
Specific Outcomes
1.Demonstrate knowledge and understanding
of property concepts associated with
mortgage finance
4
6
SO1 Explain general terms associated with property finance ; SO2 Understand
requirement for mortgageable residential property; SO3 Understand key finance
elements in property development schemes; SO3 Understand requirements for the legal
sale of property
2.Demonstrate knowledge and understanding
of ownership of property relevant to
mortgage finance
4
4
SO1 Understand terms related to ownership of immoveable property; SO2 Explain legal
requirements for ownership; SO3 Explain legal requirements for transfer of ownership;
SO4 Evaluate different ownership options available to a purchaser
3. Demonstrate knowledge and understanding
of the basic requirements of security for
finance
4
6
SO1 Demonstrate understanding of principles of good security; SO2 Demonstrate
understanding of requirements for legally binding security; SO3 Demonstrate
understanding of contractual capacity of individuals; SO4 Demonstrate understanding of
contractual capacity of no-individuals
4. Demonstrate knowledge and understanding
of a mortgage bond as a form of security
4
6
SO1 Define a mortgage bond; SO2 Evaluate a mortgage bond over immoveable property
as security
SO3 Evaluate different types of property ito good security; SO4 Demonstrate
understanding of securities in mortgage finance
5. Demonstrate knowledge and understanding
of the bond registration process
4
6
SO1 Demonstrate understanding of the overall registration process; SO2 Explain role of
attorney’s in the registration process; SO3 Explain role of deeds office in the registration
process ; SO4 Explain role of financier/bank in the registration process
6. Evaluate the impact of changes to details
after registration
4
14
SO1 Evaluate impact of changes to the individual borrower; SO2 Evaluate impact of
changes to non-individual borrower; SO3 Evaluate impact of changes to the property;
SO4 Evaluate impact of changes to the mortgage loan; SO5 Evaluate impact of default
on the mortgage loan
7.Advise a borrower of mortgage finance
options
4
10
SO1 Demonstrate understanding of terms and concepts associated with mortgage
finance; SO2 Explain general requirements for a standard loan; SO3 Explain
requirements for a building loan; SO4 Match a borrowers need with a specific mortgage
finance solution
8. Guide a borrower through application for a
mortgage loan
4
6
SO1 Explain how to apply for a mortgage loan; SO2 Explain requirements for granting a
loan; SO3 Explain the registration of a mortgage bond; SO4 Explain the commencement
of the loan
9. Advise a borrower concerning affordability
of mortgage finance
4
10
SO1 Determine finance costs; SO2 Determine bond registration costs; SO3 Demonstrate
financial implications of different repayment options; SO4 Discuss affordability
10. Assess the financial position of an
applicant for mortgage finance
4
15
SO1 Determine a borrowers risk profile; SO2 Determine a borrowers financial position;
SO3 Determine a borrowers ability to afford the finance; SO4 Make a recommendation
11. Evaluate the suitability of a property for
mortgage finance
4
10
SO1 Demonstrate understanding of the value of property; SO2 Highlight risks associated
with property; SO 3 Identify security required; SO4 Demonstrate understanding of
banking policy related to residential mortgage finance
12. Conduct a credit assessment of an
application for Mortgage Finance
5
15
SO1 review the borrowers ability to repay the loan; SO2 Establish the value in the
property; SO3 Highlight the risks in the transaction; SO4 Evaluate compliance with
banking policy; SO5 Present conclusions
Overall Skills Hierarchy in the Area of Mortgage Finance
Sales
Standard Home Loan
Sale US7240
Application of Establish
financial
Knowledge
position
and Skills
US7231
Analysis of a
personal
banking
position
US7234
(generic – not
specific to
Mortgage
Finance)
Customer Service
Sales Skills
Generic Skills
Fundamental
Skills
Customer Service
& Interaction
Credit Support
Administration
Advise borrower re
Mortgage Finance
options US7
Credit assessment for
Mortgage Finance
US12
Rectify Records US7193
Advise borrower re
affordability US9
Assess property US11
Authorise Payment
US7190
Guide client through the
application process US8
Assess borrower US10
Administer Payment
US7189
Cancellation US7192
Provide info US7152
Capture US7150
Mortgage Bond as a
form of Security for a
loan US5
Evaluate impact of
changes after Bond
Registration
Lending Policy
Financial
Analysis
Fundamental
Knowledge
Property US1
Ownership of
Immovable
Property US2
Security in
Lending
(general) US3
Bond
Registration
US5
Product & Service
Knowledge (specific to
bank of financier)
General
Policy
(specific to
bank)
POLICY AND
PROCEDURE
KNOWLEDGE
APPLICABLE
AT
DIFFERENT
STAGES IN
THE
PROCESS –
SPECIFIC TO
BANK OR
FINANCIAL
INSTITUTIONS