Elements and Performance Criteria

RANGE STATEMENT
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Pre-settlement conditions of finance approval may include:
checking for existence of existing registered company charges and obtaining consent to subsequent charge where appropriate
checking that the original approval has not expired through passage of time (most approvals are only valid for three months, then subject to review)
confirming amount required to discharge other debts or registered encumbrances
gaining consent of prior mortgagee if second mortgage security is being taken
ensuring borrowing parties have verified their identity to avoid fraud
ensuring contracts for the sale of land, including land transfer documents, have been properly executed to ensure the legal transfer of title and are in accordance with the original loan application
lender's interest
obtaining copy of approval to commence development or construction
obtaining copy of signed and stamped lease of property
obtaining copy of signed building contract
obtaining evidence that any necessary independent legal or financial advice has been obtained
obtaining evidence that other undertakings by the borrower have been met such as:
sale and settlement of other property
repayment of other debts
provision of evidence of insurance.
Various parties may include:
parties holding land titles required for registration of documents, including prior mortgagee
parties holding encumbrances that are to be lifted and relodged, discharged or withdrawn:
caveats
warrants
memorials
other forms of encumbrance
solicitors or settlement agents arranging the transfer of land
parties whose existing mortgages or company charges are to be discharged.
Documentation may include:
Credit Reference Association of Australia (CRAA) authority signed
guarantees
loan contract
periodical payment authority
signed application form.
Settlement issues may require that the broker:
confirm the amounts required by the various parties to the settlement, identify the sources of the funds required to achieve settlement, and confirm availability of the funds in time for the proposed settlement date
ensure arrangements have been made by one or more of the parties to the settlement to ensure that all existing encumbrances, caveats, registered company charges, etc. will be discharged, satisfied or withdrawn at settlement
ensure that there are no arrears of rates or taxes from local authorities or government utilities that, if unpaid, remain as a first ranking charge over the title.
Relevant approving personnel may include:
credit manager
loans approval officer
relationship manager.
Conditions of the loan approval may include:
change of term
amount financed
balloon or residual value initially stated in application
deposit or additional equity in the purchase
insurance over asset mortgaged or financed
loan guarantor
security over debtor assets or asset purchased through the loan.
Settlement may take place:
at the lender's site or another site.
with loans settled by lending organisations such as:
banks
building societies
credit unions
mortgage managers and originators.
Relevant legislation may include:
Chattels and Securities Act
Cheques and Payment Orders Act
codes of practice
Consumer Credit Code
Credit Reference Association of Australia (CRAA)
Electronic Funds Transfer (EFT) Code of Conduct
Financial Institutions (FI) Code
Financial Transaction Reports Act
Privacy Act
prudential legislation.
Methods of funds disbursement may include:
crediting an account
top-up of existing debt
issuing a cheque to third party
issuing a cheque to applicant
marking up a limit
property settlement.

EVIDENCE GUIDE
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
accurately complete loan settlement tasks and disbursement of funds within agreed timelines as required by the organisation
interpret and comply with relevant legislation, statutory requirements and organisational procedures.

Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables
access to lending product information
access to relevant specialist software and data

Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
verbal or written questioning on underpinning knowledge and skills
evaluating samples of work
accessing and validating third party reports.

Guidance information for assessment