Category Archives: CeMAP and DiPFA Training

Calling all CeMAP qualified students…The Money Hub is hiring!

Recruitment drive is on at one of our Mortgage industry contacts.
Please see details and how to make contact below:

If you are seeking a new challenge we have a brilliant opportunity for fully qualified CeMap advisers to join our thriving mortgage brokers working from our offices in Hadleigh, Essex.

The Money Hub is Directly Authorised and we offer our clients a full range of products including mortgages, loans, insurance, bridging and commercial finance. As a Cemap qualified Adviser with The Moneyhub you’ll be able to develop your career and enjoy the benefits of working under a successful organisation that provides the support necessary to help you achieve success.

We will provide you with:

  • Pre screened qualified leads from our own website
  • Excellent in-depth training and ongoing compliance support
  • A generous commission split with a high level of uncapped earnings
  • Administration support
  • Access to CRM & sourcing systems

A successful candidate must:

  • Be pro-active, driven and hard working
  • Be outgoing and able to create a good rapport with clients
  • Be professional and knowledgeable
  • Adhere to the company and industry compliance standards
  • Be able to call clients who require assistance sometimes in the evenings and weekends

This is mainly a telephone based role although if you wish to meet with clients you can.

THIS IS A SELF EMPLOYED ROLE – Commissions will be paid on a weekly basis

Expected target earnings £43,200 to £55,000

IF INTERESTED PLEASE CALL THE OFFICE ON 0203 725 5830 AND ASK FOR MATTHEW.
don’t forget to mention that you got the hook up from Futuretrend. our cemap website and course details can be found here www.cemap123.co.uk

CEMAP Study: What is TCF?

TCF (Treating customers Fairly) was introduced to make firms focus on how they treat their customers and in particular ensure customers are treated fairly. If you are a CeMAP student you can expect a few questions to arise from this area

All authorised firms must comply with the 11 principles for Business and while quite a few of them are relevant to how firms treat their customers it is principle 6 that is most associated with TCF and for CeMAP Study and Exam purposes it makes sense to have a good understanding of this. You will normally come across this when you start studying CeMAP 1 unit 2 of UK financial regulations.
Principle 6 states that a firm must pay due regard to the interest of its customers and treat them fairly.

TCF means treating customers fairly, irrespective of how they contact you or what product they have. It needs to be embedded within a firm’s culture

How should firms deal with TCF on a daily basis?

Firms are required to adopt TCF as their guiding principle so it becomes part of their culture. Everyone should be part of it from the board through to the senior management and all the way through the organisation.

The responsibility for implementing TCF lies with a firm’s board and senior management.

Areas where a firm could consider embedding TCF:

– Corporate strategy and culture.
– Product design and governance.
– Financial promotions
– Sales and advice.
– Consumer information and services
– Complaint handling
– Firms need to be polite and professional. They will need to be clear and transparent with customers however, that doesn’t mean a customer will always they always get what they want.

TCF is based on principles rather than rules. The regulator has therefore defined 6 consumer outcomes. It is important to pay attention and learn more about how these outcomes can be applied practically for your CeMAP Study and exams

  1. Consumers can be confident that they are dealing with firms where the fair treatment of customers is central to the corporate culture. A good example is how we reward staff. This should not  just be with pay but with bonuses,  incentives (like health, fitness well-being) etc. If all staff compensation is just based on sales alone for instance, there is a risk that a significant amount of unsuitable sales will be generated as a consequence
  2. Products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and are targeted appropriately. Taking customers opinions into consideration during the design process and checking to see if sales, cancellations etc met expectations. Also reviewing different groups of customers to ensure communications are enabling them to buy products which suits their needs and not the other way round.
  3. Consumers are provided with clear information and are kept appropriately informed before, during and after a sale. For example, when a customers fixed rate period ends and their mortgage rate changes. Many customers feel aggrieved that they weren’t given due notice of this by their mortgage broker.
  4. Where customers receive advice; the advice must be suitable and take full account of their circumstances. For instance, It would be ideal to make product literature available in braille format for someone who has a visual impairment.
  5. Consumers are provided with products that perform as firms have led them to expect and the associated service is both of an acceptable standard and as they have been led to expect.. This simply means that firms can’t create false expectations or package things in a way that will lead to the consumer being misled.
  6. Consumers do not face unreasonable post-sale barriers imposed by firms to change product, switch provider submit a claim or make a complaint. For example, regarding switching provider a firm could easily impose long notice periods, onerous information demands, communication difficulties and even administrative delays in order to frustrate the customer

So we have looked at the 6 Consumer outcomes expected from TCF. This should help illuminate this important section found in  CeMAP 1 Unit 2

For further help with CeMAP please see our dedicated CeMAP 123 website and info on our regular CeMAP training courses or  CeMAP Home study support

CeMAP Tutorial: The role of estate agents

When studying for your CeMAP 2 exam knowledge of the purchase process is crucial.
We have created this quick video tutorial to help you lock down the key points around the role of estate agents in the mortgage  process.

In the CeMAP exam you can always expect a few questions in and around this. Video tutorials like this can make the CeMAP learning process much easier

If you are interested in gaining access to more videos like this and other resources to help you pass your CeMAP exam  then  have a look at our home study CeMAP course available on our dedicated CeMAP web site:

http://www.cemap123.co.uk/homestudy/index.html

The training course covers CeMAP 1, 2 & 3 and has been written and designed by experienced CeMAP tutors; Our CeMAP Home Study programme simplifies all the essential subject areas of the CeMAP syllabus giving you the confidence to pass the CeMAP exam first time.

 

CeMAP questions from our Virtual Learning Zone (Part 6)

Every month we go through our CeMAP forums at http://www.cemap123.co.uk   and  http://www.futuretrend.org.uk/vle/  to see what interesting queries have been dziners-org-discussionposted.  Students have access to this  as part of their CeMAP Training programme. This is not only a fantastic resource for  post classroom or distance learning CeMAP study but also provides a whole years access to an eco-system of like-minded folk. and if a tutor is too busy (as was the case with the query below…both CeMAP tutors David and Malik were teaching at the time); what you will find is that there are always other students ready to help;

This months CeMAP query comes from Richard currently studying CeMAP 2.

Richards’s Question:

Morning all,

May be I’m being a bit thick here (!!) But I need help understanding the below please.

I need assistance with the deed of postponement, relating to second charges. In the notes it states:-

To set aside a 2nd mortgage, the original lender requires a deed of postponement that MUST be executed. The D.O.P will postpone the 2nd charge, and make it possible for the original lender to “Tack” a subsequent mortgage (third charge) to an original one.

Errm, can someone help my brain comprehend this please?

Thanks,
Richard

James recently completed his CeMAP Fast Track training with us and came to Richards rescue.

James’s answer:

Hi there,

It’s all to do with the order that payments will be allocated in the event of a repossession, the first charge (original mortgage) will be paid first, then the second charge, and if there’s a shortfall then the second charge lender is at more risk of losing their money than the first charge lender.

If the original lender wishes to increase their lending, that will be added to the original loan, and will be repaid in the event of a repossession before the second charge lender receives their money, so they would need a deed of postponement from the second charge lender to make sure that they agree to that happening, if they believe that it would be too much of a risk then they won’t agree to it.

An example:

Original mortgage is £100,000, there’s a second charge loan for £25,000, totalling £125,000 borrowing secured on a £200,000 property.

The customer approaches their first charge lender to borrow an additional £50,000, this would take the total borrowing to £175,000, the original lender can be pretty confident that their £150,000 can be repaid if the house is repossessed, but if property values drop and the house can only be sold for £160,000 then the original lender will have received their money back, but the second charge lender will have lost £15,000. 

The deed of postponement gives the second charge lender the chance to refuse to allow the additional borrowing to be tacked on to the loan that will be repaid before they are able to reclaim their money.

Hope that helps,
Give me a shout if you need any more clarification.

Futuretrend students are crushing CeMAP!

Some inspiring feedback and  excellent results from  some students on David Airs Weekday Fast Track CeMAP classes.

I attended the CeMAP 2 and 3 course of recently and just wanted to thank you as I passed CeMAP 2 and 3 just before Christmas.  CeMAP 2 I achieved merit on the first module and then 3 distinctions on the remainder and I achieved merit on CeMAP 3.

I feel that I would not have achieved this without your course so thank you for your excellent training. Now the even harder part for me as I just need to find myself a job now!!

Helen

Hi David

I did the CeMAP 1 today and was absolutely gobsmacked to discover that I got distinction for both units – I thought I’d done okay on the 1st unit and was hoping to scrape a pass on the 2nd, so am absolutely delighted – it must be down to excellent tutoring! Let’s hope 2&3 go well too.

Thanks again for a great course and for your patience.

Best regards
Sue

Well done both of you and thank you for the kind words. It’s always great to see candidates shaping their careers by staying focused and working hard.
For information about our CeMAP Training please visit www.cemap123.co.uk or call us on 020 8443 2888.

DipFA Factfind Exam Tips: How can I analyse protection needs of a family?

The DipFA factfind exam set for Jan 12th 2017 is fast approaching. Our lead tutor Betul Cuninghame explores some concepts worth considering here:exam analyst

When recommending protection policies, always imagine the effects of the financial risks on the family and think in detail. It is not a good practice to see only one aspect of such risks and making recommendations on that basis. Recommending  life cover equal to the mortgage debt only without giving any extra money for other costs after death may not suffice!

EXAMPLE: the death of a parent may mean that:

  • no more income will come from that parent,
  • mortgage is no longer affordable;
  • it may result in repossession due to non-payment of mortgage
  • repossession may bring homelessness to the remaining members of the family
  • the other parent will lose his/her job to look after the children etc.
  • funeral costs and other costs to be paid from the other parent’s income or savings until s/he gets grant of probate – s/he can’t access any savings of the deceased until s/he gets grant of probate, resulting in costly bills to be paid by other means.

All these risks require careful analysis and proportionate amounts to overcome financial issues after the events. Having a life cover just equal to the mortgage debt will only pay off the mortgage but it will not leave any money for the other costs after death of that parent e.g. funeral costs, legal costs (probate), bills to be paid (one parent’s income may not be sufficient to pay the whole household bills) etc.

So, either

  • increase the lump sum amount to cover these extra costs and to provide income with the remaining amount OR
  • have another cover to supplement the life cover: e.g. Life cover to pay off the mortgage as well as a FIB to provide income to cover all these extra costs after the death of one parent.

You should be able to decide what amount of cover would be appropriate and justify it in your reports.

For more help and support with your upcoming factfind exam see how we can help you at our dedicated DipFA Training web site

CeMAP questions from our virtual learning zone (part 5)

Every month we go through our CeMAP forums at http://www.cemap123.co.uk   and  http://www.futuretrend.org.uk/vle/(which our students have access to as part of their CeMAP Training programme) to see what interesting queries have been dziners-org-discussionposted.

This months CeMAP query comes from Mansi currently studying CeMAP 2.

Mansi Question:

Hi,

I need help with mock papers -Payments and products B.(no 11)

question is “Ian and Sandra are buying a new house and have been offered a £120,000, 25 year repayment mortgage at 6%,giving a monthly payment of £6.52 per £1000 borrowed.How much would the total payments compare with an interest only mortgage at the same rate,backed by an Nisa with monthly contribution of £200?

ans is “The interest only mortgage would be £18 month more expensive”.

But cannot work it out .

Kindly help.

David’s answer:

Good morning Mansi,

Easy peasy!!!!

The question is testing whether you know how to work out the costs of a repayment mortgage compared to interest only.

So, Repayment – the mortgage costs 6.52 per thousand, so 6.52 x 120 (thousands) = £782.40 per month

Interest only – 120,000 x 6% = 7,200 PER YEAR. Divide by 12 gives the monthly payment of £600. Then add the cost of the ISA = £200. So Interest mortgage will cost £600+£200 = £800

So, £800 – £782.40 = £17.60 which gives the closest to the answer of £18

I hope this answers your query. Should you need any further explanation please let us know

Regards

 David Airs (Futuretrend CeMAP Tutor)

IFS 2016/17 CeMAP Syllabus update delayed


The IFS University College have just informed us that the Certificate in Mortgage Advice and Practice (CeMAP®) examination will change on the 1 December 2016, with the new study material for the 2016/17 examination being released on 17 October 2016.

 

“It is usual for ifs­­ ­University College to change the examination on 1 September each year however this year due to our company change of name and other changes to the format of the study material, this date has moved to 1 December 2016.”

This gives students studying the current 2015/16 syllabus a lot longer to prepare themselves  and hopefully there won’t be the typical  lack of exam spaces in July/August.

IFS DipFA Fact Find exam 7th July 2016

The Fact Find for the next exam has just been released, and there is plenty to get your teeth into!rp_finance-role1-300x200.jpg

What is covered?

The fact find covers a wide variety of topics, such as;

  • Inheritance Tax Planning
  • Final Salary Pensions
  • Investment Planning
  • Ethical Investments

and more, all to be researched and then written up in a 3 hour exam.

As always, there may also be areas or information missing or incomplete, which you will be expected to spot and account for, followed by some amendments on the day.

What does the exam look like?

Remember, the exam is there to test your knowledge, understanding, and crucially the application of that knowledge to the client’s situation and needs.

You will have to write or type out a full Suitability Report from scratch in three hours.  Whilst the report may not fully resemble a ‘real life’ report, (it is after all an exam) that is a tall order.

A good thing to remember is that you need to explain your recommendations, and why they are suitable for the clients, even if it seems ‘obvious’.

How should you prepare?

Research and Practice!

Reading and studying the required areas covered in the Fact Find is essential. Web searching the basics and then following up with the IFS Study Topic Folders is useful for most candidates.

Then once you have formulated some solid recommendations practice delivering your report in the 3 hour limit.

Remember though that anything can come up as an amendment on the day if the subject is in the syllabus!

Where can I get help?

For those looking to gain extra support on top of the IFS help and guidance, Futuretrend are running online courses and a one day course in London on 11th June 2016

However you choose to study, Good Luck to all those engaging with this exam!

Paul Davis

IFS DipFA Coursework July 2016 A Five Point Guide to get you started…

Ok, so you’ve looked at your Coursework questions…what next?courses-image

First thing is to try and get your head around the main report question.  You need to consider how to draft a business report aimed at the MD of a company that has almost no employee benefits and wants to introduce an Auto-Enrolment pension, plus other potential benefits.  Think about what do you want to know about, and also what do they need to know about?  The question is very helpful here as it lists several points of required information for you.

Second, think about the structure of the report.  Based on my experience, a lot of candidates struggle here.  The Executive Summary has thrown some people.  You can search online for a simple “how to” on this.

Here’s a link I found to a really helpful detailed explanation of what a good executive summary should look like.  

Then think about having a report title, some chapters (with chapter headings!), and work out what each chapter will cover.  Tidy up at the end with a neat summary.

Third think about references.  The referencing has been massively simplified by the IFS, and the new approach is a welcome change of direction, as it will help candidates focus on the actual work rather then spend hours trying to format a full academic bibliography.  But you still need references!  Best to think about this as you go along…

Fourth, think about technical knowledge.  What do you know about stakeholder pensions?  Auto-enrolment?  Employee Benefits?  Costs?  Tax implications for the employer?  Tax implications for the employee?  Bound to be some areas you don’t know much about – best get studying!

Five, when going on to the short answer questions, remember they do not need referencing, or long introductions.  Most short questions in the Coursework can be covered using bullet points or short sentences.  They are called short questions for a reason!

Need more help?

If you are looking for more help, you can consider the Futuretrend online DipFA Coursework course, which I am running, and / or also the IFS tutors as well if you are signed up for them.

Good Luck!

Paul Davis, BA (Hons), Cert. Mgmt (Open), Dip. PFS,