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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
Rachel Rozentals-Thresher
rrt@mweb.co.za
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
Building
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
Finance
Repayment - - 9 9 options
US 7
• Guide
Default 4,6 4,6 6 6 client
regarding
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
Refinancing
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
APPLICABLE
AT
DIFFERENT
STAGES IN
THE
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
Skills
INSTITUTIONS
Fundamental
Knowledge
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
bank)
