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									                        MORTGAGE FINANCE

                       Industry Unit Standards
                                Project deliverable Report 2.2

                               • Unit standards scope findings
                        • Unit standards titles and specific outcomes
              • Unit standards linked to a skills hierarchy for Mortgage Finance

                                                                            Rachel Rozentals-Thresher
9 July 2002                                                                              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.
                                                                                                               Conveyancing Product
                                                                                                                   and       Options and              Client
     General Mortgage Finance Knowledge and Understanding                                       Credit          Registration Parameters              Service
                                                      Financial considerations/             Credit             • Parties and        • This is        • Additional
                                                       implications relevant to              Assessment:         their roles          specif ic to     gaps
                 Legal Considerations
                                                                                                                                      the Banks        identif ied
                  relevant in Banking                          Banking                      • Assessment        • Terms
                                                                                              of af fordability                     • Calculation      during the
                  Buyer’s            Bank’s              Buyer’s            Bank’s                              • Jargon                               draf ting
                                                                                              of loan                                 of interest,
                perspective        perspective         perspective        perspective                           • Process             repayments       phase
Buying and                                                                                  • Analysis of
                                                                                              supporting        • Timing
                                                                                                                                      and            • Guide
Selling              1,2                1,2
Property                                                     9                9               security
                                                                                                                                      repayment        client
                                                                                                                • Fees                terms            through
                                                                                            • Suitability of                                           application
                                                                                                                • Documents         • Applicable
                     7                  7                    7                7               property
                                                                                                                                      unit             US 8
                                                                                                                • Applicable unit
                                                                                            • Applicable                              standards      • Guide
                                                                                                                  standard US 5
                                                                                              unit standards                          US 7 & 9         client
Bonding              4                  4                    9                9               US 3, 4, 7,                                              regarding
                                                                                              10, 11 & 12                                              Mortgage
Repayment            -                  -                    9                9                                                                        options
                                                                                                                                                       US 7
                                                                                                                                                     • Guide
Default              4,6                4,6                  6                6                                                                        client
                                                                                                                                                       af f ordability
Repossession                                                                                                                                           US 9
                Only relevant to   Only relevant to   Only relevant to   Only relevant to
                 properties in      properties in      properties in      properties in
Reselling and    possession         possession         possession         possession
Draft Unit Standards (under review for Mortgage Finance)
Unit standard Title                               Level   Credits   Specific Outcomes
1.Demonstrate knowledge and understanding           4        6      SO1 Explain general terms associated with property finance ; SO2 Understand
of property concepts associated with                                requirement for mortgageable residential property; SO3 Understand key finance
mortgage f inance                                                   elements in property development schemes; SO3 Understand requirements for the legal
                                                                    sale of property
2.Demonstrate knowledge and understanding           4        4      SO1 Understand terms related to ownership of immoveable property; SO2 Explain legal
of ownership of property relevant to                                requirements for ownership; SO3 Explain legal requirements for transfer of ownership;
mortgage f inance                                                   SO4 Evaluate different ownership options available to a purchaser

3. Demonstrate knowledge and understanding          4        6      SO1 Demonstrate understanding of principles of good security; SO2 Demonstrate
of the basic requirements of security for                           understanding of requirements for legally binding security; SO3 Demonstrate
finance                                                             understanding of contractual capacity of individuals; SO4 Demonstrate understanding of
                                                                    contractual capacity of no-individuals
4. Demonstrate knowledge and understanding          4        6      SO1 Define a mortgage bond; SO2 Evaluate a mortgage bond over immoveable property
of a mortgage bond as a form of security                            as security
                                                                    SO3 Evaluate different types of property ito good security; SO4 Demonstrate
                                                                    understanding of securities in mortgage finance
5. Demonstrate knowledge and understanding          4        6      SO1 Demonstrate understanding of the overall registration process; SO2 Explain role of
of the bond registration process                                    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        4       14      SO1 Evaluate impact of changes to the individual borrower; SO2 Evaluate impact of
after registration                                                  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             4       10      SO1 Demonstrate understanding of terms and concepts associated with mortgage
options                                                             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 f or a      4        6      SO1 Explain how to apply for a mortgage loan; SO2 Explain requirements for granting a
mortgage loan                                                       loan; SO3 Explain the registration of a mortgage bond; SO4 Explain the commencement
                                                                    of the loan
9. Advise a borrower concerning affordability       4       10      SO1 Determine finance costs; SO2 Determine bond registration costs; SO3 Demonstrate
of mortgage f inance                                                financial implications of different repayment options; SO4 Discuss affordability

10. Assess the financial position of an             4       15      SO1 Determine a borrowers risk profile; SO2 Determine a borrowers financial position;
applicant f or mortgage f inance                                    SO3 Determine a borrowers ability to afford the finance; SO4 Make a recommendation

11. Evaluate the suitability of a property f or     4       10      SO1 Demonstrate understanding of the value of property; SO2 Highlight risks associated
mortgage f inance                                                   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               5       15      SO1 review the borrowers ability to repay the loan; SO2 Establish the value in the
application f or Mortgage Finance                                   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
                                              Customer Service
                        Sales                                                  Credit Support               Administration
                                                & Interaction
                  Standard Home Loan            Advise borrower re           Credit assessment f or      Rectif y Records US7193
                      Sale US7240               Mortgage Finance               Mortgage Finance
                                                  options US7                         US12                 Cancellation US7192
                            Analysis of a
                              personal          Advise borrower re           Assess property US11          Authorise Payment
                              banking            af f ordability US9                                            US7190
Application of Establish
               f inancial     position                                       Assess borrower US10          Administer Payment
 Knowledge                                    Guide client through the
               position       US7234                                                                            US7189
  and Skills                 (generic – not
                                              application process US8
                US7231                                                                                                               POLICY AND
                               specific to                                                                 Provide inf o US7152
                               Mortgage                                                                                              PROCEDURE
                               Finance)                                                                      Capture US7150          KNOWLEDGE
                                                                                                                                      STAGES IN
                         Customer Service        Mortgage Bond as a               Evaluate impact of
                                                f orm of Security f or a          changes af ter Bond                                 PROCESS –
                        Sales Skills                                                                           Lending Policy
                                                       loan US5                      Registration                                    SPECIFIC TO
 Generic Skills
                      Financial                                                                                                        BANK OR
Fundamental           Analysis                                                                                                        FINANCIAL

                                    Ownership of        Security in          Bond           Product & Service         General
                  Property US1       Immovable           Lending           Registration   Knowledge (specif ic to     Policy
                                    Property US2      (general) US3           US5           bank of f inancier)     (specif ic to

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