mortgage brokerage

Transcription

mortgage brokerage
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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.