MORTGAGE FINANCE Industry Unit Standards Project deliverable Report 2.2 Contents

1. MORTGAGE FINANCE • Industry Unit Standards • Project deliverable Report 2.2 • Contents • Unit standards scope findings • Unit standards titlesand specific outcomes • Unit standards linked to a skills hierarchy for Mortgage Finance Rachel Rozentals-Thresher rrt@mweb.co.za 083-268-6607 9 July 2002

2. 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 and Registration Product Options and Parameters Client Service General Mortgage Finance Knowledge and Understanding Credit Financial considerations/ implications relevant to Banking • Credit Assessment: • Assessment of affordability of loan • Analysis of supporting security • Suitability of property • Applicable unit standards US 3, 4, 7, 10, 11 & 12 • Parties and their roles • Terms • Jargon • Process • Timing • Fees • Documents • Applicable unit standard US 5 • This is specific to the Banks • Calculation of interest, repayments and repayment terms • Applicable unit standards US 7 & 9 • Additional gaps identified during the drafting phase • Guide client through application US 8 • Guide client regarding Mortgage Finance options US 7 • Guide client regarding affordability US 9 Legal Considerations relevant in Banking Buyer’s perspective Bank’s perspective Buyer’s perspective Bank’s perspective Buying and Selling Property Building Bonding Repayment Default Repossession Reselling and Refinancing 1,2 7 4 - 4,6 1,2 7 4 - 4,6 9 7 9 9 6 9 7 9 9 6 Only relevant to properties in possession Only relevant to properties in possession Only relevant to properties in possession Only relevant to properties in possession

3. Draft Unit Standards (under review for Mortgage Finance)

4. Overall Skills Hierarchy in the Area of Mortgage Finance Customer Service & Interaction Sales Credit Support Administration Standard Home Loan Sale US7240 Advise borrower re Mortgage Finance options US7 Credit assessment for Mortgage Finance US12 Rectify Records US7193 Cancellation US7192 Analysis of a personal banking position US7234 (generic – not specific to Mortgage Finance) Authorise Payment US7190 Advise borrower re affordability US9 Assess property US11 Establish financial position US7231 Application of Knowledge and Skills Generic Skills Fundamental Skills Fundamental Knowledge Administer Payment US7189 Assess borrower US10 Guide client through the application process US8 POLICY AND PROCEDURE KNOWLEDGE APPLICABLE AT DIFFERENT STAGES IN THE PROCESS – SPECIFIC TO BANK OR FINANCIAL INSTITUTIONS Provide info US7152 Capture US7150 Customer Service Mortgage Bond as a form of Security for a loan US5 Evaluate impact of changes after Bond Registration Sales Skills Lending Policy Financial Analysis General Policy (specific to bank) Ownership of Immovable Property US2 Security in Lending (general) US3 Bond Registration US5 Product & Service Knowledge (specific to bank of financier) Property US1