Mortgages Certificate in Mortgage Advice and Practice (CeMAP ) Module 2 Syllabus Learning Outcomes

Transcription

1 Mortgages Certificate in Mortgage Advice and Practice (CeMAP ) Module 2 Syllabus Learning Outcomes Unit 3 Mortgage Law, Policy Practice and Markets On completion of the module, candidates will be expected to Demonstrate a knowledge of: 1 the regulatory definition of different types of mortgages and equity release 2 the house-buying process, the key parties involved and their roles 3 the principal types of property defect that surveys can identify and understand their implications when seeking a mortgage, including the options available to consumers 4 the process and implications of buying property at auction 5 the common types of borrower and how their main mortgage related requirements may differ and what factors may disqualify people from borrowing Demonstrate an understanding of\: 1 the main requirements of the Mortgage Conduct of Business Rules and the legislation affecting mortgages 2 the economic and regulatory context for giving mortgage advice Unit 4 Mortgage Applications On completion of the module, candidates will be expected to Demonstrate an understanding of: 1 the role of a Mortgage Adviser and the importance and principles of providing advice, including the key factors affecting the advice given 2 the implications for consumers of 'gazumping' and 'gazundering' 3 the purpose of additional security, including the role of guarantors

2 4 the fees and charges involved in arranging a mortgage, identify where these apply, the services they cover, when they become due, which are refundable and how the opportunity for refunds diminishes as the process nears completion 5 the principal factors affecting the value of property, including their implications for consumers seeking mortgages and when consumers should be referred for specialist advice 6 the different forms of valuation and survey and which might be appropriate for different properties and/or the borrower's circumstances 7 the need to obtain Local Authority planning consent for house development/extensions Unit 5 Mortgage Payment Methods and Products On completion of the module, candidates will be expected to Demonstrate an understanding of: 1 the key features of the different types of mortgage repayment options and their benefits and drawbacks for different types of borrower 2 the key features of the common types of mortgage product and interest rate options 3 the structure and features of other types of mortgage 4 the main features and functions of different forms of life assurance and other insurances (eg mortgage payment protection insurance (MPPI), life, accident and sickness insurance (ASU), building insurance, contents insurance) associated with arranging a mortgage Unit 6 Mortgage Arrears and Post-Completion On completion of the module, candidates will be expected to Demonstrate an understanding of: 1 the principles and procedures associated with raising additional money and the circumstances when further borrowing might be appropriate 2 the principles, procedures and costs associated with transferring mortgages 3 the principles of using mortgages within debt consolidation arrangements 4 the implications for the borrower of the non-payment of mortgages, other breaches of the Mortgage Deed, non-payment of building insurance and the options available 5 the legal rights/remedies available in respect of non-payment from borrowers 6 the main provisions made by the State to assist consumers in difficulties over the repayment of mortgages

3 Detailed Syllabus Unit 3 Attainment Levels Outcome Indicative Content Mortgage Law, Policy, Practice and Markets Demonstrate a knowledge of: 1 the regulatory definition of different types of mortgages, second charges and equity release 2 the house-buying process, the key parties involved and their roles 3 the principal types of property defect that surveys can identify and understand their implications when seeking a mortgage, including the options available to consumers 4 the process and implications of buying property at auction K11 regulatory definitions as given in the Handbook England/Wales K21a role of estate agent/valuer/conveyancer/legal adviser; K22a process from offer/private treaty to contract exchange/completion and when a contract becomes binding; OR Scotland K21b role of estate agent/valuer/legal adviser; K22b conditional/unconditional offer; K23b private bargain; K24 acceptance/completion/conclusion of missives; K31 main property defects; K32 how property defects may affect the lending decision and/or require immediate remedial works K41 requirement for funding (ie cash/mortgage commitment) to be in place up front; K42 contracts exchanged, with associated deposit, on the day K43 different methods of purchasing property via auction

4 5 the common types of borrower and how their main mortgage related requirements may differ and what factors may disqualify people from borrowing K51 private/residential borrowers; K52 intermediary/business/commercial borrowers (outline only); K53 high net worth K54 mortgage professionals K55 those who cannot borrow: undischarged bankrupts; impaired credit status; mentally incapacitated; minors Demonstrate an understanding of: 1 the main requirements of the Mortgage Conduct of Business Rules and the legislation affecting mortgages U11 National House-Building Council guarantees and other forms of guarantee U12 Consumer Protection from Unfair Trading Regulations 2008 U13 Contract Law U14 Principles of Agency U15 Consumer credit law U16 Legal obligations and guarantors U17 Lenders Rights and Borrowers Covenant U18 Financial Services and Markets Act 2000 and Financial Services Act 2012 (including the Mortgages and Home Finance: Conduct of Business Rules) England/Wales/Northern Ireland: U19 Property Law OR Scotland: U110 policies, as determined by the Scottish Executive, affecting the mortgage process and property market in Scotland; U111 Matrimonial Homes Act (eg single borrowers require an affidavit); U112 Tenancy Act; U113 Mortgage Rights Act; U114 Statutory Repair Act; U115 Bankruptcy Act (refers to 'sequestration' in Scotland); U116 Land Tenure Reform Act U117 Feu disposition (reference Land Certificate in England/Wales); U118 Court decree (reference County Court Judgment in England/Wales)

5 2 the economic and regulatory context for giving mortgage advice U21 the property market and the main conditions that affect it U22 interest rates and their drivers U23 the UK mortgage lending sector U24 mortgage and second charge regulation: MCOB and its implications for the mortgage adviser

6 Unit 4 Mortgage Applications Attainment Levels Outcome Indicative Content Demonstrate an understanding of: 1 the role of a Mortgage Adviser and the importance and principles of providing advice, including the key factors affecting the advice given 2 the implications for consumers of 'gazumping' and 'gazundering' 3 the purpose of additional security, including the role of guarantors 4 the fees and charges involved in arranging a mortgage, identify where these apply, the services they cover, when they become due, which are refundable and how the opportunity for refunds diminishes as the process nears completion U11 affordability; U12 suitability; U13 risk U14 term of mortgage U15 principles of ethical advice, including regulatory guidance (for example, Treating Customers Fairly) U16 methods of verifying information supplied by consumers (plausibility) U17 methods of checking that mortgage solutions match consumer immediate and long term needs and circumstances U21 gazumping U22 gazundering U31 the requirement for guarantors to be advised to seek independent legal advice U32 Higher lending charges and other types of security (life policies and collateral) U41 reservation fees; U42 application fees; U43 arrangement/booking fees; U44 lenders reference fees; U45 Land Registry fees; U46 valuation fees; U47 estate agent fees; U48 legal/solicitors fees; U49 Stamp Duty Land Tax/Land and Buildings Transaction Tax (LBTT); U410 Local Authority searches; U411 bankruptcy searches; U412 telegraphic transfer costs; U413 environmental searches, eg flooding, mining U414 Mortgage exit administration fees U415 survey fees EPCs and other specialist reports; U416 title indemnity fees; U417 higher lending charge U418 brokers fees

7 Demonstrate an understanding of 5 the principal factors affecting the value of property, including their implications for consumers seeking mortgages and when consumers should be referred for specialist advice 6 the different forms of valuation and survey and which might be appropriate for different properties and/or the borrower's circumstances 7 the need to obtain Local Authority planning consent for house development/extensions U51 type of property; U52 location; U53 building materials and any restrictions; U54 age of property; U55 freehold/commonhold/leasehold (England & Wales); U56 multiple use; U57 vacant possession; U58 reinstatement value; U59 whether it is insurable; including but not limited to risk of flooding/subsidence/heave U510 planning permission; U511 building regulations; U512 contract guarantees; U513 listed/heritage; U514 easements, including but not limited to rights of way; U515 due diligence enquiries, including but not limited to outstanding disputes; U516 covenants U61 forms of valuation and or survey (basic valuation, Condition Report, HomeBuyer report, Building Survey); U62 requirements of lenders; U63 rights of the consumer U71 the legal basis of local authority planning procedures U72 the main procedures in obtaining local authority planning consent U73 development limitations that apply to different categories of listed buildings

8 Unit 5 Mortgage Payment Methods and Products Attainment Levels Outcome Indicative Content Demonstrate and understanding of: 1 the key features of the different types of mortgage repayment options and their benefits and drawbacks for different types of borrower U11 capital and interest repayment (repayment mortgages); U12 interest payment (interest only mortgages); U13 implications for the consumer of the under-performance of repayment options U14 repayment vehicles used in conjunction with interest only mortgages endowment policies; pension arrangements; ISAs; OEICS; Unit Trusts, Investment Trusts U15 lender s requirement to assess performance of repayment vehicles 2 the key features of the common types of mortgage product and interest rate options U21 standard variable rate mortgages; U22 tracker mortgages (variable rate/libor/base rate tracker mortgages); U23 fixed rate mortgages; U24 capped rate (including capped and collared) mortgages; discounted rate (including cash back/gift) mortgages; low start mortgages; U25 flexible mortgages; U26 all in one/current account mortgages/offset mortgages, including drawdown facilities; U27 CAT marked mortgages; U28 hybrid arrangement products, for example 'part and part' mortgages U29 the performance and volatility of fixed and variable interest rates for different types of borrower

9 3 the structure and features of other types of mortgage 4 the main features and functions of different forms of life assurance and other insurances (eg mortgage payment protection insurance (MPPI), life, accident and sickness insurance (ASU), building insurance, contents insurance) associated with arranging a mortgage U31 commercial mortgages; U32 equity release including home reversion plans; U33 low start mortgages; U34 self build mortgages; U35 foreign currency mortgages; U36 new build mortgages; U37 buy to let mortgages (including types of tenancy); U38 'right to buy' Council property mortgages; U39 shared appreciation mortgages; U310 shared ownership mortgages (Housing Association); U311 equity share mortgages; U312 Government incentives including Help to buy schemes U313 adverse credit/sub-prime mortgages (for 'non-conforming' or 'nonstatus' borrowers, with, eg CCJs/arrears/discharged bankruptcy); U314 Sharia compliant mortgages (also known as Islamic mortgages) U41 life assurance; Pension term assurance U42 accident and sickness/critical illness/unemployment/ redundancy insurance U43 income protection insurance; U44 buildings and contents insurance; U45 waiver of premium benefit;

10 Unit 6 Mortgage Arrears and Post-Completion Attainment Levels Outcome Indicative Content Demonstrate an understanding of 1 the principles and procedures associated with raising additional money and the circumstances when further borrowing might be appropriate 2 the principles, procedures and costs of transferring mortgages 3 the principles of using mortgages within debt consolidation arrangements 4 the implications for the borrower of the non-payment of mortgages, other breaches of the Mortgage Deed, nonpayment of building insurance and the options available U11 equity release products; U12 further advances; U13 draw down facilities; U14 release of part security U15 remortgages U16 second mortgages; U17 bridging loans; U18 charging structures; U19 legal implications U21 transfer of mortgage to a new lender; U22 implications of property moves; U23 converting one mortgage to another U24 removing or adding one party from or to a joint mortgage; U25 implications of redeeming a mortgage before/at the end of its term; U26 making additional/lump sum capital repayments on a mortgage, during its term U31 relationship between costs/ penalties/repayments/term; U32 risk to the consumer associated with consolidation; U33 risks associated with moving loans from unsecured to secured status; U34 draw down facilities U41 when to provide a mortgage warning, ensuring that this is understood; U42 possible courses of action available (eg Scotland mortgage to rent scheme); U43 regulatory requirements regarding the treatment of those in arrears; U44 Mortgage Rights Act (Scotland); 5 the legal rights and remedies available to lenders in respect of non-payment from borrowers U51 role of Citizens Advice and other agencies; U52 rights of subrogation of insurers to pursue borrowers; U53 legal remedies for the lender on default

11 6 the main provisions made by the State to assist consumers in difficulties over the repayment of mortgages U61 Support for Mortgage Interest (SMI) U62 52 week linking rule