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  3. as part your own professional development serving as a positive...

Question: as part your own professional development serving as a positive...

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  1. As part your own professional development, serving as a positive role model and teaching others, you have decided to review the MFAA Code of Practice. This will ensure a thorough understanding and future training standards. Explain the general standards of the code.

 

  1. As part of maintaining and ensuring compliance, you have decided to check and categorise all statutory records accordingly. Under each of the headings below, list at least three types of registers that you believe fit the relevant category

    Recording Registers  

    Records and Certificates

    Policies and procedures  

     

     

     

     

     

     

     

     

     

     

     

     

 

  1. You are auditing one of the teams’ Product Disclosure Proposals and need to discuss it with them before they hand it to the client. You’ve noticed (ongoing) commission is shown as an annual figure instead of monthly. The loan was for $320,000. 

 

Fees and commissions

Fees payable to us for the provision of broking service

We do not charge any fees for our service. We get paid commission from the lender. [OR – remove as appropriate]

Our service fee is $      (including GST) or      % of the finance amount, for arranging finance on your behalf. The fee is payable on approval of your loan/s. [You cannot charge a fee before you provide credit assistance] 

Fees payable to third parties

There are no fees or charges paid by us to third parties. [OR – remove as appropriate]

Total fees and charges paid by us to third parties are $      (including GST). The fees and charges are paid to       for arranging     . [for example ‘paid to XYZ Company for arranging valuation’] 

The fee is payable when required by the third party.

Estimate of commission to be received by us. This commission is payable to us for assisting you to obtain finance.

.65% of the amount of the principal finance amount shortly after the finance is provided.  We estimate this to be $2,080.

.15% per annum of your outstanding loan amount owing payable monthly.  We estimate the largest monthly payment to be $480.

These amounts are inclusive of GST.

Commission will be paid by:

The commission will be paid by the lender documented above to the licensee. The licensee will then pay some or all of the commission to the credit representative.

Other benefits

From time to time we receive benefits in the form of conferences and training sessions provided by the licensee, financiers, or others.  The value of these benefits cannot be ascertained.

Estimate of total fees and charges payable to the financier in relation to applying for the finance.  

These fees are payable by you.

Application/Establishment fees

$500

Valuation fees

$350

Legal/Documentation/Settlement fees

$800

Lenders mortgage insurance premium

$     

Other

$     

Total

$     

These figures are estimates only and the final figures will be shown in your credit contract or lease.  Some or all of these fees may be paid from the finance proceeds.  

These fees are payable only once. 

We are not aware of any other fees or charges payable to anyone else in relation to the application for finance, but the financier may impose some additional requirements.

[IF ANY FEES ARE DEFINITELY TO BE PAID FROM THE CREDIT OBTAINED, SPECIFY A REASONABLE ESTIMATE OF THE AMOUNT OF CREDIT LEFT AFTER PAYING THOSE AMOUNTS AND ANY FEES TO THE BROKER.]

Referral fee

The credit representative has paid or will pay a referral fee of $      to       for referring you to us.  

In addition, we receive referrals from a broad range of sources.  For example, we may pay fees to call centre companies, real estate agents, accountants, or lawyers for referring you to us.  These referral fees are generally small amounts and accord with usual business practice.  These are not fees payable by you.

Using the table below correct the commission amounts.

Estimate of commission to be received by us. This commission is payable to us for assisting you to obtain finance.

.65% of the amount of the principal finance amount shortly after the finance is provided.  We estimate this to be $     

.15% per annum of your outstanding loan amount owing payable monthly.  We estimate the largest monthly payment to be $     

These amounts are inclusive of GST.

 

 

 

 

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