Homework answers / question archive / Scenario JC Loans is the loan aggregator for Swanson Brokers (SWB) and has just informed James the broker responsible for John and Davina Edwards mortgage loan application that the assessment for their loan falls short

Scenario JC Loans is the loan aggregator for Swanson Brokers (SWB) and has just informed James the broker responsible for John and Davina Edwards mortgage loan application that the assessment for their loan falls short

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Scenario

JC Loans is the loan aggregator for Swanson Brokers (SWB) and has just informed James the broker responsible for John and Davina Edwards mortgage loan application that the assessment for their loan falls short. This is because of compliance documents and credit information not being provided. James has rushed the process because John and Davina have been putting enormous pressure on him to push the application through quickly, John being a FIFO worker is due to fly out for work again and they don't want to miss out on their dream home. However. now the loan assessment will be delayed which could mean that John and Davina may miss out on purchasing the home. The ACL holder for SWB is Claude Marasco and he and his brokers are all members of the MFAA. Claude is not happy with James for allowing the pressure his clients put him under to influence how he put their loan application together. Claude also senses that James was eager to get an early commission paid which is unacceptable. Claude has decided to give the brokers a refresher training session regarding: the legislative requirements of a broker; the importance of getting the documentation right - including examples of what happens when you don't; and the implications for mortgage brokers in relation to compliance under Best Interests Duty legislation.