Sample Essay Writing Paper on Question and answers

1.What roles or tasks does a mortgage broker perform
A mortgage broker offers financial advice to home buyers and homeowners giving them
financial options for real estate purchase. A mortgage broker provides information to
homeowners by assisting them to find the loan that suits their needs. They also negotiate with the
lenders to secure loans on behalf of the homeowner. In addition, the mortgage broker oversees
the signing of the loan documents as a witness (Aalbers, 2016).
2.What are the requirements of a mortgage broker
Mortgage broker needs to have acquired high school education and the college degree, the most
important qualification to be a mortgage broker is a license. Although each state has different
regulations to obtain a license one needs to have proper professional experience and training.
One needs to pass a written test and meet the standard requirements of being a broker.
3.How can you build trust with a new client
Mortgage brokers can build trust by ensuring that clients receive all the attention by answering
their questions or find someone to provide them with additional information they would require.
Timely, clear a short response will make clients believe that the broker is a useful resource that
he can refer someone or return for more advice. Building trust is about making the best decision
regarding mortgage sale and loaning (Aalbers, 2016).
4. What information should you provide about your organization when you first meet a
The first time you meet the client, it is important to present an overview of the organization what
the company does and the available offers. Other information includes the company background
and the main services the company offers. It is important to share the company experience to

ensure that clients feel that they are seeking advice from a knowledgeable and reputable
company (Ambrose & Conklin, 2014).
5.What are the benefits of ADR procedure
The alternative dispute resolution process has numerous benefits for both parties involved in the
dispute process because they have the opportunity to work through dispute and finally agree on
common ground through the third party (Singer, 2018). This process is faster and less expensive
compared to the court process. Given the fact that most people cannot afford to pay for certain
legal feel they can still access the dispute resolution process to solve their problem (Singer,
6.What information needs to be disclosed by the client
A client needs to disclose all the relevant information during meditation, which is bound by
confidentiality .The client, needs to discuss merits of his respective position and how it relates to
the dispute .In addition, the client needs to present factual information that resulted to the dispute
depending on the nature of the dispute (Bargman, 2014).
7. What is the client's financial position determined by
A clients' financial position is determined by the client's incomes which should be adequate to
meet his investment needs. Income attempt alone is not adequate to state a client's financial
position other documents like the balance sheet which indicates the client's assets, liabilities, and
net worth also determines his financial position (Bargman, 2014).
8. What information would you use to clarify your client's investment goals and
As an advisor, I would explain the value position, the investment process and how to get paid.
It's important to sign an investment policy statement to set parameters this will help in measuring

performance . A clients engagement letter is an important document with expected standard of
practice the can help to ensure that everything decision is based on what the client wants
(Johnson & Peterson, 2014).
9.Researching available services may include
Being a financial advisor entails laying out the situation to come up with a plan that entails
doing real projection by searching for additional information and investigating available
alternatives that can help clients make a good financial decision. Researching means analyzing
outside the area of expertise or other better offering. (Johnson & Peterson, 2014).
10.Where might you seek specialist advice from
One can seek for specialist advice from a licensed financial advisor or professional advice from a
business advisor to help in investing to minimize any financial problems. A good financial
advisor needs to have the expertise to explain both the risk and benefits of investment
11.What do you need to consider when making a referral for specialist advice
When referring for specialist advice, it's essential to act in the best interest of the clients. When
one realizes that the client's request does to fit what is available, it's essential to inform the
clients of all the available options and also propose to him a good advisor in the specific area that
can help the clients (Krewson-Kelly & Thomas, 2016).
12.What do you need to do in order to prepare documentation and follow-up
To prepare documentation and follow up, it’s important to adopt procedures for documentation
one need to use a checklist to ensure that the successful implement takes place before the
completion process (Muheki et al, 2015). Using a requirement list can help answer a question
during the validation process to capture those questions that might be forgotten during the
follow-up process (Muheki et al, 2015).

13. What is essential when creating records for a client
When creating records for a client, it is essential to have an accurate and appropriate record kept;
record keeping is important in many professions because of offering accountable services.
Creating records for a client means providing the client with accurate and up to date records that
can assist later in making referrals for other services
(Krewson-Kelly & Thomas, 2016).
14. What is essential when updating client records?
Updating clients records encourage comprehensive record and reduce unnecessary
documentation, updating records saves time and facilitate easy retrieval of information from the
records. Modification of records required to present correct information that needs to be stored
and maintained a clearly labeled to facilitate easy referencing (Krewson-Kelly & Thomas, 2016).

Part 2
1.Financial, accounting terms and concepts
a. Variable and fixed rates interest rates
Variable interest is the interest rate for a loan whereby the rate will be charged on the
outstanding loan balances which varies depending on the market interest rate changes. Fixed
interests are interest rates are charges whereby interest rates for the loan are fixed for the whole
period no matter the market interest rates (Ambrose & Conklin, 2014).
b.Types of mortgage account
The two types of mortgage account are fixed rates whereby charges stay the same for years and
variable rate where interest rates changes with time (Ambrose & Conklin, 2014).
c.Procedure and principles of deposit bond
A deposit bond acts as a guarantee whereby the purchaser can use to pay for the deposit at
settlement. Long-term deposit bonds last up to 4 years, which can be used to pay for properties
off the plan. When buying property, one is required to provide cash deposit of 10 percent of the
purchase price. The deposit bond can use as a guarantee for the contract sale (Ambrose &
Conklin, 2014).
d. Financial record relating to different ownership models
The consolidated method is a type of investment accounting the used for consolidating the
financial statement of majority ownership investment. These methods are used, and an effective
method to control subsidiary which is assumed to be 50.0percent of the subsidiary shares .By

consolidating subsidiary balances means combining financial statement of the subsidiary with
parent company balance (Aalbers,2016).
2.Key features of complaint handling and resolution process and the roles of alternative
dispute resolution schemes and services
Critical features of complaint handling and resolution process includes neutral evaluation, neutral
negotiation, conciliation, and mediation. However, arbitration and mediation negotiations are the
first attempt to resolve disputes. Negotiation permits parties meet and settle disputes. Alternative
dispute result in schemes and services offering numerous advantages because it allows parties
to control the process and the solution (Block, 2017).
3.Explain the credit and credit reporting services
The credit history is important to mortgage lenders, banks and other entities. Therefore, a credit
report can determine your financial position. Credit reporting services act as an agency that
maintains historical credit information of individuals and business. The agency received reports
for lenders, and other sources compiled that includes a credit score (Bargman, 2014).
4. Explain the key features of the economic environment and business cycle, financial
markets and the role of industry participants, interest rates, exchange rate, and inflation
In any business environment, stable inflation is expected to eliminate macroeconomic instability.
Therefore, stable inflation reduces inflation risk (Johnson & Peterson, 2014). Any small changes
in annual growth rate over time can result in the difference in income levels affecting the living
standard. Changes in economic policies and institutional reforms can improve the economic
growth of a country. However, high inflation rates reduces tax credited hence the cost of
investment increases if the money used to purchase capital goods will raise the inflate near. This
decrease accumulation of physical capital which is a key driver of growth. Exchange rate affects

the rates of inflation (Johnson & Peterson, 2014). For example, if the exchange rate appreciates
the prices of imported goods reduces. Exchange rate appreciating slows the growth of GDP
because of the fall in net export and the rise in demand for import. Fall in currency can be used
as the expansive monetary policy to counter-cyclical measure to stimulate export demand ruing
decision to bring improvement in balance trade (Johnson & Peterson, 2014).
5. Identify and describe the key features of the legal environment and relevant legislation
services in regards to
a. Disclosure
Under the privacy act, specific rules and guidelines is about protection use and disclosure of
information relating disclosure. The act provides that records should not be disclosed to any their
party without written a written consent from the person (Caron et al, 2016).
Privacy act is an act that controls how personal information is used and handled the act states
that information should be kept confidential, whether its individual signature, address,
telephone numbers, date of birth, medical record, bank account detail or commentary or opinion
about the person (Caron et al, 2016).
c.An industry code of practice
An industry code of practice rules that regulate industry conduct. The code helps in improving
industry standards by proving flexible, low-cost forms of regulation (Caron et al, 2016).
d.National credit code
The national credit code outlines licensing of credit service providers and obligation regarding
credit lending conducts .The credit can be offered for household purposes to purchase, improve
residential priority for investment purposes (Caron et al, 2016).

6. Describe the key features of lender mortgage insurance
One of the key features of lender mortgage insurance is that it is insurance given by the lender
to help insure against the risk of not being able to recover the full loan balance if the borrower is
unable to meet the loan payment. It's important to understand that the lender mortgage insurance
cover the lender not the guarantor (Aalbers, 2016).

7. Explain the following definition
a. Lender and borrower
The lender is an individual or a group the offer funds with an expectation that the funds will be
repaid within an agreed period .The borrower is the person who receives money and expected to
pay at with an interest (Aalbers, 2016).
b.Lessor and lessee
The lessor is the person who receives payment in exchange from using the property while lessee
is the party who pays the lessor to use the property (Aalbers, 2016).
c.Mortgagor and mortgagee
Mortgagor I the lending institution that offers financial assistance for buyers while a mortgagee
is a person who borrows money from the mortgagor for home purchase(Aalbers, 2016).
8. a. Land title and searches
Land title is an official record proving the ownership of land while title search is a record issued
by the land title office containing land title register within a specific period
(Ambrose & Conklin, 2014).
b. Strata title versus company title

Strata title is a record that indicates the ownership of layers of airspace like a multi-story
building .Company title is a scheme of land ownership whereby a company has a title to land
(Ambrose & Conklin, 2014).
c.Multiple securities
Multiple securities is a payment method where one can settle using securities in the home market
or remote market and cross-border transaction (Ambrose & Conklin, 2014).

d.Securing the second mortgage
Second mortgage loan is issued as collateral to purchase a home the loan is the first loan that is
secured by a lien (Ambrose & Conklin, 2014).

e.Subdivision of title
Subdividing of title means diving land into pieces for development using a plat (Ambrose &
Conklin, 2014).
f.Partial discharge of mortgage where multiple securities are held by partial lender
discharge occurs when one has more than one property secured by a loan and would want to
release those properties as security without pay the full loan. Partial discharge where there are
multiple security held by lenders al the security properties will not be discharged on the same
day (Bargman, 2014).
9. Categorize and explain at least two types of fee and charges
The first type of fee is the upfront to set up fee, which is one off payment when you start paying
the loan. Administration fee can be charged every month or year for administering loans.


Aalbers, M. B. (2016). The financialization of home and the mortgage market crisis. In The
Financialization of Housing (pp. 40-63). Routledge.
Ambrose, B. W., & Conklin, J. N. (2014). Mortgage brokers, origination fees, price transparency
and competition. Real Estate Economics, 42(2), 363-421.
Bargman, D. (2014). Think on the Downside: A few alternative measures of market risk that lead
to safer and more profitable investment strategies. Saarbrücken: LAP LAMBERT
Academic Publishing.
Block, M. J. (2017). The Benefits of Alternative Dispute Resolution for International
Commercial and Intellectual Property Disputes. Rutgers L. Rec., 44, 1.
Caron, X., Bosua, R., Maynard, S. B., & Ahmad, A. (2016). The Internet of Things (IoT) and its
impact on individual privacy: An Australian perspective. Computer law & security
review, 32(1), 4-15.
Johnson, D., & Peterson, M. (2014). Consumer financial anxiety: US regional financial service
firms’ trust building response to the financial crisis. International Journal of Bank
Marketing, 32(6), 515-533.
Krewson-Kelly, S., & Thomas, R. B. (2016). The Intelligent REIT Investor: How to Build Wealth
with Real Estate Investment Trusts. John Wiley & Sons.
Muheki, M., Lueg, K., Lueg, R., & Schmaltz, C. (2015). How business reporting changed during
the financial crisis: a comparative case study of two large US banks.
Singer, L. (2018). Settling disputes: Conflict resolution in business, families, and the legal
system. Routledge.