INSU07025 2022 QFA Loans - Practice

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.

Act effectively under guidance in a peer relationship with qualified practitioners; learn to act in variable unfamiliar learning contexts managing tasks independently, professionally and ethically.

This module will be delivered through self-directed learning with the support of a supervisor and mentor in the student's workplace. This module complements the "QFA Loans Theory Module" module and allows the student to integrate their academic knowledge gained into a practical work-based setting in the completion of a number of case studies and on-the-job tasks. The student will have ample choice to enable them to pick an agreed number of case studies and tasks from the work-based syllabus. The student should focus on case studies that are appropriate to their working environment. The completed case studies will be submitted through the learning management system having been signed off by their supervisor. The completed case studies will be reviewed by IT Sligo's academic programme leader.

There are specific requirements which must be met by the student in completing the experience-based syllabus. The work-based supervisor is required to validate that the case studies and tasks meet the attainment of the learning outcomes of the module. Specific criteria are provided for each of the case study areas. The student must answer the relevant questions posed in the prescribed format. The work-based supervisor will assess the case study/task on a pass / fail basis and the completed case studies (with the supervisor's report) are uploaded to the learner management system by the student. The case studies will not be considered/accepted as complete if they are not submitted with the supervisor's signature/report.

This module will be assessed 100% by continuous assessment.

This module has been designed to complement the ‘QFA Loans Theory' module. The student will relate the topics covered in that module to their workplace environment and will work on these learnings in a business context.

This assessment examines the student's understanding and application of knowledge. These questions will require students to link pieces of information together in a cause-and-effect relationship and apply their knowledge and/or understanding to a given set of circumstances.

The answers will involve an essay-type response.

The work-based supervisor must sign-off on the student's submission. The student has a maximum of 3 opportunities to submit their work to their supervisor.

A submission will not be accepted or considered complete if the work-based supervisor has not signed off on the work and the sign-off sheet is not included with the submission.

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