INSU07024 2022 QFA Loans - Theory

Identify the regulatory bodies involved in the regulation of housing loans and consumer credit and their roles, and interpret the obligations they place on providers of housing loans and consumer credit.

Evaluate mortgage credit agreements, housing loans, home reversion agreements, consumer credit agreements, and associated insurances.

Critique the operation of the mortgage market and demonstrate an appropriate level of financial and economic knowledge relevant to the mortgage market.

Assess the housing, consumer credit and associated insurances needs of consumers.

Appraise the main details of, and apply the tax relief afforded to, interest for housing loans and mortgage credit agreements, including bridging loans.

Calculate sums accumulated or discounted at compound interest.

This module is delivered with a blend of self-directed study supplemented by e-learning resources such as pre-recorded webinars and revision masterclasses. The teaching and learning modes will include:

Textbook

The Textbook is revised on an annual basis to reflect changes in legislation and regulation.  It is equivalent to the lecture notes students would receive in formal education institutions.

Revision Masterclass

Online lectures utilise lecture notes with extra reading material.  In these sessions real time practical examples will be used.  These classes provide the opportunity for the lecturer to maximise the use of formative assessment which helps the lecturer identify areas which the students are having difficulty with, so that adjustments can be made to the lecturing techniques, content of lessons and academic support.

In class discussion

Based on the theories/concepts underpinning business, in class discussion will be used to establish the level of understanding of the retail financial products.  Students will be encouraged to identify the application within their own place of employment and from the general business environment.

Self-Directed Questions

Self-Directed Questions will be used to determine their ability to review, fact-find and make recommendations while applying the knowledge they have acquired from the course textbook. 

Individual Work

Working as an individual will allow for the further development of self-discipline and enquiry.  

Personal Reflection

The personal reflection allows the student to look back over the learning experiences and identify areas for improvement and areas that worked well.

The assessment strategy for QFA Life Investment is by way of a two-hour 100 multiple-choice question (MCQ) summative examination.

The repeat assessment will be 100% final examination.

Introduction

• Loan as a Financial Need
• Individual Loan Needs
• The Development of the Irish Residential Market
• The Mortgage Process
• Regulatory Bodies
• Legislation and Codes Impacting on Housing Loans and Consumer Credit
• The Law of Contract

Housing Loans

• Housing Loan Lifecycle
• What is a Housing Loan?
• Regulated Entities
• Security for Housing Loans
• Ownership of Land
• Registering the Ownership of Property
• Property Ownership Rights
• Purchasing New v Second-Hand Properties
• Options Available to Purchase Property
• Types of Housing Loans
• Interest Rates
• Housing Loan Interest Rates
• Charging Interest
• Risks When Choosing a Mortgage Type

Taxation and Reliefs

• Mortgage Interest Relief (Tax Relief at Source – TRS)
• Capital Acquisitions Tax - Inheritance
• Help to Buy Scheme
• Finance (Local Property Tax Act, 2012
• Rent a Room Relief
• Tax Relief on Residential Property Loans

Comparing Housing Loans

• Assessing a Loan Application
• Affordability
• Upfront Costs
• Ongoing Cost
• Risks/Rewards When Choosing a Mortgage Type

Housing Loan Insurance             

• Mortgage Protection
• Specified Illness Cover
• Income Protection
• Household Insurance
• Structural Defect Cover

Arranging a Housing Loan          

• Advertising Housing Loans
• Contacting a Client
• Providing Terms of Business
• Knowing Your Customer – Fact-Finding
• Obtaining a Valuation Report
• Making a Recommendation
• Guarantors
• Completing the Loan Application Form
• The Underwriting Process
• Insurance
• Approval in Principle (AIP)
• Mortgage Agreement
• The Conveyancing Process
• Loan Refusal
• Irish Credit Bureau (ICB)
• Credit Reporting Act, 2013

Re-mortgaging and Stage Payments      

• Re-mortgaging
• Debt Consolidation Housing Loans
• Equity Release
• Stage Payment Loans

Arrears and Debt Management

• Mortgage Arrears Resolution Process (MARP)
• MARP Step 1: Communication with Borrower(s)
• MARP Step 2: Financial Information
• MARP Step 3: Assessment
• MARP Step 4: Resolution
• Appeals
• Life Assurance Implication for Loans in Arrears
• Repossession of a Property
• MABS (Money Advice and Budgeting Service)
• Debt Management Firms
• Personal Insolvency (Amendment) Act, 2015
• Non-Judicial Debt Resolution Process
• Summary of the Personal Insolvency Act
• Bankruptcy

Consumer Credit            

• Consumer Credit Agreements
• Consumer Protection (Regulation of Credit Servicing Firms) Act, 2015
• Credit Provided to Consumers
• Credit Intermediaries
• Advertising of Consumer Credit
• Consumer Credit Regulations
• Hire Purchase Agreements
• Comparing Consumer Credit