FNS50315 Diploma of Finance and Mortgage Broking Management

FNSFMB501 Settle applications and loan arrangements in the finance and

mortgage broking industry

Assessment 2

FNS50315_ FNSFMB501 Assessment 2 V1.0 REAA Released January 2019

Page 1 of 3
1eae7764-e53c-4f5f-8203-655481d30f30

Assessment information

You are a practicing settlement agent and are involved in a number of residential mortgage
settlements each week.

Instructions to complete this assessment

In order to complete this assessment, you are required to complete the following sections
consecutively. Details and specific instructions are provided within each section and on the
form/templates provided.

Supporting documents

To find the relevant supporting documents, please refer to the Assessment Resources folder, located
within the FNSFMB501 Settle applications and loan arrangements in the finance and mortgage broking
industry section of your course. (Note: Not all units have assessment resources.)

Section 1 – Review the Settlement Agent Scenarios

Requirements
Step 1: Download and review the Settlement Agent Scenarios, located in the Assessment Resources
folder.

Section 2 – Prepare Advice for Clients

Requirements
Respond to the scenarios in step 1 and, if necessary, refer to the Conveyancing Policy and Procedure
Manual (Assessment Resources folder) when developing your responses:

2.1 Re. Scenario 1: As Robbie’s settlement agent: what advice would you communicate to Robbie
and how will you assist your client with his settlement problem?

With the Settlement date coming closer I would call and discuss an extension with the
vendor's settlement agent.

Positive outcome - Vendor Consents to negotiate a settlement extension through the

vendor's settlement agent.

Negative outcome - If you can't secure the loan by your settlement date, you'll likely be
charged interest and penalty fees, and the seller may even be able to cancel the sale and
keep your deposit.

V1.0 REAA Released January 2019

Page 2 of 3
1eae7764-e53c-4f5f-8203-655481d30f30

2.2 Read Scenario 2, then provide your client with advice about whether a vendor’s pest inspection
report should be relied upon at the time of loan settlement.

I would advise Robbie that it is NOT advised to accept the vendor getting the pest inspection
as it needs to be a non-bias independent inspection.

2.3 Read Scenario 3, then advise your client Jane what her legal position is regarding the required
devices.

Even though the contract states the only condition is a pest inspection the vendor is still the
titleholder of the land (Property) and needs to comply with and uphold legal government
legislation.

V1.0 REAA Released January 2019

Page 3 of 3