mortgage brokerage
Transcription
mortgage brokerage
CCoom mppeetteennccyy ffrraam meew woorrkk iinn mortgage brokerage Professional competencies evaluated by the O ACIQ © Organisme d’autoréglementation du courtage immobilier du Québec, September 2010 – All rights reserved. Competency framework in mortgage bro kerage The competency framework is a guide to help future brokers understand what competencies must be developed and mastered in order to act ethically and responsibly in their brokerage practice. Six competencies make up the competency framework in mortgage brokerage: Acting ethically and responsibly in one’s brokerage practice Managing one’s professional activities Making use of general and special rules of law in mortgage brokerage transactions Being familiar with the basic principles of an asset’s market value Performing the different calculations related to mortgage brokerage transactions Performing a mortgage brokerage transaction Each competency of the framework was developed after an analysis of professional situations, followed by a validation process with the sector’s practitioners and professionals to ensure that the framework corresponds to reality while meeting the requirements of the profession. A professional situation represents the responsibility incumbent on the broker in the course of his/her professional duties. These professional situations give rise to professional actions that must be implemented to ensure the fulfillment of such responsibilities. Finally, these professional actions necessitate mastery of professional resources. These resources are primarily the knowledge that the candidate must master in order to act professionally and effectively. The OACIQ’s new examination was designed based on this competency framework. The development process of the competency framework in mortgage brokerage was patterned on the model proposed by Mr. Jacques Tardif, Professor at the Université de Sherbrooke. © Organisme d’autoréglementation du courtage immobilier du Québec, September 2010 – All rights reserved. Competency framework in mortgage brokerage © Organisme d’autoréglementation du courtage immobilier du Québec, September 2010 – All rights reserved. Competency framework in mortgage brokerage Core competencies Professional situations Professional actions Code of Ethics Competency 1 Acting responsibly and ethically in one’s brokerage practice Professional resources All All Rules of ethics Basic accounting Working capital and liquidity Being in business Taxes on purchases and sales Looking for clients and solicitation Fulfilling one’s obligations as a selfemployed broker or a salaried broker Business plan Knowing one’s obligations to a client Ethics and professionalism Self-employed broker Defining one’s practice as a salaried broker or as a self-employed broker Competency 2 Broker affiliated to an agency Salaried broker (assistant) Managing one’s professional activities Real estate structure in Canada Mortgage structure in Canada Government programs and grants (HBP) Using professional resources related to mortgage brokerage Knowing how to use the available resources Financial implications and dues Role of mortgage insurers (CMHC, GE, AIG) CAAMP Membership OACIQ © Organisme d’autoréglementation du courtage immobilier du Québec, September 2010 – All rights reserved. Competency framework in mortgage brokerage Core competencies Professional situations Professional actions Professional resources OACIQ standards Doing the administrative work necessary to keep registers and records Competency 2 Managing one’s professional activities (continued) Code of Ethics Digitization software available Keeping registers and records of mortgage transactions Role of the Organisme Preparing for a professional inspection Steps of a professional inspection Syndic’s investigation Real Estate Brokerage Act By-law of the OACIQ Code of Ethics Publication of rights and land register Acting in accordance with the laws and regulations Competency 3 Making use of general and special rules of law in mortgage brokerage transactions Civil law and concepts of liability Business law and types of enterprises Civil law and concepts of contracts Observing the general and specific rules of civil law pertaining to real estate and mortgages Bankruptcy and Insolvency Act Security interests and prior claims (guarantees) Register of personal and movable real rights (RDPRM) Rules and concepts of arbitration Promoting arbitration or mediation as a conflict resolution method in mortgage brokerage Arbitration procedure Rules and concepts of mediation Mediation procedure © Organisme d’autoréglementation du courtage immobilier du Québec, September 2010 – All rights reserved. Competency framework in mortgage brokerage Core competencies Professional situations Professional actions Professional resources Concept of mortgage and hypothec Types of loans and particularities Diversity of existing products Knowing the legal and administrative framework governing mortgage credit Procurement of funds History of mortgages Types of lenders Securitization Competency 3 Making use of general and special rules of law in mortgage brokerage transactions (continued) Liability insurance Observing the general and specific rules of civil law pertaining to real estate and mortgages (continued) Fraud prevention Ensuring the legality of one’s practice Money laundering Confidentiality with the client Information security Credit check consent Fulfilling one’s fiscal obligations to governments Taxation Act Publicizing one’s mortgage brokerage services Competition Act (interest rates), (private lenders) Goods and services tax Rule on advertising © Organisme d’autoréglementation du courtage immobilier du Québec, September 2010 – All rights reserved. Competency framework in mortgage brokerage Core competencies Professional situations Professional actions Professional resources Effect of geographic location Knowing the socioeconomic context of the sector and the assets Competency 4 Being familiar with the basic principles of an asset’s market value Understanding the components of an opinion on the value of a residential or commercial immovable or an enterprise Effect of the building’s architectural style Effect of limitations of public law (cultural property, etc.) Sales market Parity method (comparables) Using different methods to establish the value of a residential or commercial immovable or an enterprise Income method (economic) Cost method Estimating of movable property Usual basic concepts (percentage, etc.) Distinguishing the concepts related to basic mathematics Calculation mechanism Comparison of promotions (cash rebate, rate discount, etc.) Types of borrowing (mortgage, personal and other) Competency 5 Performing the different calculations related to mortgage brokerage transactions Performing the mathematical and financial calculations related to residential and commercial mortgage transactions Calculation of different loans (mortgage, personal and other) Types of payments Performing the different borrowing calculations for a client Simple and weighted rates Balance of sale Rate discount or early redemption interest rate Rules governing insured loans (CMHC), (premiums) © Organisme d’autoréglementation du courtage immobilier du Québec, September 2010 – All rights reserved. Competency framework in mort gage brokerage Core competencies Professional situations Professional actions Professional resources Penalties Release Mortgage transfer Mortgage insurance (CMHC) Informing the parties of the costs related to financing Table of allocations Credit insurance (life, disability) Consumer taxes Competency 5 Performing the different calculations related to mortgage brokerage transactions (continued) Performing the mathematical and financial calculations related to residential and commercial mortgage transactions (continued) Presentation of the file Expert reports Possible recourses Interpreting the financial statements Understanding and analyzing financial statements Calculation mechanisms Fiscal environment Income from business and income from property Distinguishing the concepts related to real estate taxation Depreciation Eligible capital property Income tax calculation (capital gains) © Organisme d’autoréglementation du courtage immobilier du Québec, September 2010 – All rights reserved. Competency framework in mortgage brokerage Core competencies Professional situations Professional actions Professional resources Profitability analysis (IRR) Competency 5 Performing the different calculations related to mortgage brokerage transactions (continued) Performing the mathematical and financial calculations related to residential and commercial mortgage transactions (continued) Subscription and qualification Calculating the financial implications of the transaction Financing and refinancing Leases Purchase and leasing Presentation of the file Establishing professional relationships with the clients Individual client Client referred by a third party Types of lending institutions Types of lenders Types of mortgage products (open-closed, variable-fixed) Competency 6 Performing a mortgage brokerage transaction Applying the mortgage credit process Knowing the market for loans and financing-related products Types of loans (mortgage, personal, line of credit) Government programs and grants (HBP) Prequalification and subscription criteria Preauthorization Sources of financing Mortgage insurance products Types of buyers, sellers, lessees, lessors Determining the clients’ needs Types of loans (mortgage, personal, line of credit) Types of properties © Organisme d’autoréglementation du courtage immobilier du Québec, September 2010 – All rights reserved. Competency framework in mortgage brokerage Core competencies Professional situations Professional actions Professional resources Personalized credit record (Equifax) Credit score Analyzing the credit file Repayment risk Public archives (bankruptcy, voluntary deposit, collection) Knowing the influence of the credit rating Credit bureau codes Employment situation and sources of income Knowing and analyzing the eligibility criteria for a mortgage loan Minimum down payment Qualification ratios Credit Competency 6 Performing a mortgage brokerage transaction (continued) Advising the parties Applying the mortgage credit process (continued) Appraisal and proposal of various scenarios Signed promise to purchase Confirmation of employment and income Proof of down payment Obtaining the necessary documents for preparation and presentation of a mortgage file to the different stakeholders Detailed description with photos Corporate financial balance sheet Other necessary documents (municipal and school taxes) Report (appraisal, inspection, environmental, etc.) Layout and preparation of the documents relevant to the presentation Negotiating with interested stakeholders Presentation and negotiating techniques Sales techniques © Organisme d’autoréglementation du courtage immobilier du Québec, September 2010 – All rights reserved. Competency framework in mortgage brokerage Core competencies Professional situations Professional actions Professional resources Receipt and verification of a letter of approval Follow-up of conditions and explanations to the client Competency 6 Performing a mortgage brokerage transaction (continued) Applying the mortgage credit process (continued) Following the file to its conclusion Presentation and signing of the letter of acceptance Receipt of a letter of intention (commercial) Dissemination of the information to third parties Ensuring follow-up with the notary Payment of the commission © Organisme d’autoréglementation du courtage immobilier du Québec, September 2010 – All rights reserved.