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05/10/2009
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Welcome to Your Guide to the Mortgage Industry and CeMAP where you will find helpful hints and tips on CeMAP and also information on the Mortgage Industry and a career in the industry. industry, stry, either as If you are contemplating a career in the mortgage indu an adviser, or as part of an istration team, then this guide will provide you with a wealth of useful information. The CeMAP exam is also surrounded by much myth and speculation which we will cut through in this guide and give you clear, clear, helpful information to help you with your future choices.
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© The Herne Group 2009. All Rights Reserved. No part of this document may be photocopied, reproduced, stored in a retrieval system, or transmitted, in any form or by any means whether, electronic, mechanical, or otherwise without the prior written permission of The Herne Group. No warranty of accuracy is given concerning the contents of the information contained in this publication. To the extent permitted by law no liability (including liability to any person by reason of negligence) will be accepted by The Herne Group, its subsidiaries or employees for any direct or indirect loss or damage caused by omissions from or inaccuracies in this document.
The Herne Group reserves the right to change details in this publication without notice.
The Herne Group, Mansebank Villa, Mansfield, Leslie, Fife, KY6 3JX 01592 743131 [email protected] www.cemap-training.com
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The Mortgage Industry
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Introduction to the Mortgage Industry For most people not already involved in the industry, the only s we have with mortgages and the people who work in the industry are when we are looking for a mortgage to buy our new home. This may involve visiting a bank or building society, or using the services of a mortgage adviser in an independent brokerage. This rare tends to lend the mortgage adviser an air of mystery that is very unhelpful if you are considering working in the industry and want to know what the role is about. The industry has also been through some tough times in the 2008/2009 ‘credit crunch’ and this has only helped to deepen peoples misconceptions and prejudices about the industry.
In the next few pages we will explore in more depth the industry, the role of the adviser in the industry, and the qualities that make a good mortgage adviser.
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The Role of the Mortgage Adviser When it comes to family finances, the mortgage adviser has one of the most important roles to play. For almost everyone, the mortgage is the largest single business transaction they make. Borrowing money to buy a house is a very longterm commitment, typically 25 years, and the sums of money involved can be anything from £60,000 to several million pounds. The mortgage adviser has to assess the client and recommend a course of action that will provide the best outcome for the client. This recommendation has to be made taking into the client’s needs, wants and preferences. The most important tool the mortgage adviser has is the Fact Find, where he or she goes through a series of questions designed to find out about the client. These questions go into great detail about the client’s financial situation, plans for the future and preferences, for instance, regarding risk. Of course, the other vitally important thing to is that the client may lose their home if anything goes wrong with the mortgage. So this is a highly responsible role that the mortgage adviser has to undertake. It is because of this responsibility that the law states that anyone giving mortgage advice must be suitably qualified, and this is where CeMAP comes into play. CeMAP is the most popular qualification for mortgage advisers and it covers all of the essential information that is needed to offer mortgage advice.
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How the Mortgage Adviser Operates Once qualified with CeMAP, the mortgage adviser is then ready to give advice to potential customers. However, the mortgage market is huge with literally thousands of different mortgage products available for the adviser to recommend. It is impossible for the adviser to know everything about every product, there just are not enough hours in the day to learn it all, and then even if the adviser had learned everything, then tomorrow it could change. So the adviser has help with this knowledge, usually in the form of specialist software that has access to all of the relevant products. The software then analyses the data that the adviser has entered related to a particular client, and then returns with a recommended shortlist of products that are likely to suit that client’s needs. The experience and knowledge of the adviser is then used to select the most suitable mortgage product from this list. This is where the adviser can use the knowledge gained at the meeting, and the so-called soft facts related to the client, and match the shortlist to the client’s needs and wants. This is what differentiates a good adviser from a poor one, and is also where an advised client gains over an inexperienced client simply shopping online for the cheapest package. An experienced adviser is able to rapidly examine the products recommended by the software, and then bring out the key features that are important for the client. From this information the adviser can then go to the client with perhaps two products to choose from that will provide the closest match to the client’s needs.
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The Skills Needed to be a Mortgage Adviser Many people think that to be a mortgage adviser you need to be a mathematical genius with a calculator for a brain. Nothing could be further from the truth. The ability most needed by a mortgage adviser is to be a good listener. The adviser has to be able to listen to the client, interpret the meaning of what is said, and translate the meaning into a language that is relevant to the resourcing software. The adviser may also need to probe the client’s responses in order to determine the true meaning behind a statement where the client’s answer may not have been totally clear. The ability to listen, to communicate clearly and to build a rapport with a client are the most important attributes that anyone can bring to the role of a mortgage adviser. Without these skills an adviser will struggle to gain their client’s trust and this will severely limit the information that the adviser will gain during the meeting. The adviser is talking to the client about personal information, including future plans that may project forward for many years. The client will not only be discussing financial issues but they may also need to discuss, for example, whether there are any plans to start a family in the foreseeable future. All of this information is relevant when advising the client on a long-term commitment such as a mortgage. For example, if with a couple, both salaries are needed to cover the mortgage payments, but the plan is for one of the people to leave work to raise a family, then this is vitally important to the mortgage arrangement. It would be irresponsible of the adviser to recommend a mortgage that could only be afforded on two salaries, if he knew that one person was likely to give up work in the medium term.
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Giving Advice on the Full Range of Products As a mortgage adviser your role is not simply to advise on mortgages, but also to examine many of the client’s other financial matters. For example, does the client have life insurance, and is it sufficient taking into all of their financial circumstances? If you have just arranged a mortgage for the client, then is their life insurance adequate given the size of the mortgage? How well is the client covered for eventualities other than death, for instance, in the case of health problems, redundancy, or permanent disability? What about the buildings and contents insurance? Have they been reviewed recently? If the client has a family then these questions are absolutely vital for the family future if anything goes wrong. As a mortgage adviser it is your job to ensure that the client is advised on his or her potential problem areas. In your analysis, if you believe that they do not have adequate cover in any of these areas, or if you feel that they are paying too much for cover from their existing supplier, then it is your duty to inform them of their options and make sure that they understand the consequences of failure to provide adequate cover. As a mortgage adviser you are qualified to advise on all of these areas, i.e. life insurance, critical illness cover, permanent health insurance, buildings and contents insurance. You are not allowed to advise on pensions or investment products.
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The Role of a Mortgage Adviser is not Restricted People often wonder if the role of adviser is suited to young rather than old, or men rather than women. The truth is that the job of a mortgage adviser is really open to anyone who can communicate with others. Whether a person is young or old, man or woman, really has no impact on their suitability as an adviser. In many ways older people who have more experience of life, tend to have a better rapport with potential clients than perhaps younger, less experienced people. However, there are still many excellent young advisers who are providing their clients with good advice. What is most important is that the adviser has the skills to build a good rapport with a new client very quickly because this then makes the Fact Find easier to complete. The client must also feel able to open up with his adviser and discuss his finances and personal situation fully. So, the important thing to is that being a mortgage adviser is genuinely open to anyone, not simply because the law says that discrimination is illegal, but because whatever your age or gender, you can bring something unique to the role. The vital skill is communication, and anyone who can communicate effectively has a good chance at becoming an excellent mortgage adviser.
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The Life of a Mortgage Adviser The typical working life of a mortgage adviser depends very much on the career path chosen. Most of the banks and building societies have staff trained as mortgage advisers who operate out of the branches. For these advisers the typical working day will be centred around helping people who approach the bank or building society for a mortgage. For this type of adviser the working day is likely to be office bound within the branch and operating on a standard nine to five basis. Alternatively, it is possible to work either selfemployed or as part of a mortgage brokerage company. In this situation the adviser often visits the clients in their own homes, and frequently these visits take place in the evenings or weekends when the client is not at work. This type of role will obviously involve an amount of travelling to and from the clients’ homes, and working into the evenings. An adviser working in this role will often have a large portion of the day free, using some of this time to process the paperwork and prospect for new clients. An expanding role for advisers is in call centres. In this situation, the adviser takes calls from clients who are looking for a mortgage and gives advice over the telephone. In this case the paperwork is then sent out to the client to check, confirm and sign after the telephone conversation.
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Mortgage Adviser Income The mortgage adviser role is still one where commission plays a part in the earnings level. The proportion of income from commission depends on the type of role, the status of the adviser and the organisation with which the adviser is involved. For example, if the adviser is employed by a bank or building society, he or she is likely to be on a basic salary plus commission or target related bonuses. In this case the salary can typically be in the £20k to £25k per annum band with commission or bonuses adding another £5k to £15k per annum. If the adviser is working for a mortgage brokerage company then the salary is likely to be less (or even zero) with the commission element much greater. In this case the on target earnings are likely to be in the range of £35k to £50k per annum. Another option is that the adviser is completely self-employed possibly working under the umbrella of a network. Obviously in this situation there is no basic salary and all of the adviser’s earnings are from commission and broker’s fees. Typically a selfemployed broker can be looking to earn anywhere from £30k to £70k or more per annum. In this case the earnings are purely determined by the adviser’s work rate and ability to help his clients. The more mortgage deals arranged by the adviser, the more money will be earned.
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The Certificate in Mortgage Advice and Practice (CeMAP)
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An Introduction to CeMAP CeMAP is the most popular qualification for mortgage advisers and it fulfils the FSA requirements of a threshold qualification for a person who wishes to become a mortgage adviser. Without this qualification, or similar, it is impossible to offer advice on mortgages. The qualification was introduced after many years of voluntary selfgovernment and codes of practice within the industry, as a result of consumer demand for more regulation. The CeMAP qualification forms the foundation upon which all further mortgage adviser knowledge is built. Once qualified with CeMAP the person is ready to begin their role as a mortgage adviser. The employer will take any new recruit through what is known as the ‘Competent Adviser’ programme which will introduce them to the company methods, products and procedures. Once the adviser has completed this programme, he or she will be able to offer mortgage advice unsupervised. So CeMAP is the ‘key to the door’ for a career as a mortgage adviser, and in the following pages we will examine the syllabus and the exams in more detail.
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The CeMAP Exam Format CeMAP is divided into three exams, CeMAP 1, 2 and 3. These exams are all conducted at the local driving theory test centre and they are all computer based multiple-choice exams. The examining body for CeMAP is the ifs School of Finance who produce the syllabus and the exam questions. The mark for each exam is 70%, with a Merit grade being awarded at 80% and a Distinction at 90%. To operate as a mortgage adviser it is only necessary to all of the exams, it is not necessary to obtain higher level es. Because the exam system is computerised, you will be told your result at the exam centre immediately after you finish your exam. Written confirmation is then sent to you directly from the ifs School of Finance. When you have successfully completed all three exams, the ifs will then issue your certificate, which is the final recognition that you have reached the necessary standard to begin your career as a mortgage adviser.
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The CeMAP 1 Exam Syllabus CeMAP 1 is split into two units, Unit 1 and Unit 2. This part of the qualification is designed to provide an overview of the financial services industry and the legal and regulatory framework around which the industry operates. Unit 1 contains the following topics:
The UK Financial Services Industry
Financial Assets
Financial Products
The Financial Planning and Advice Process
The Main Areas of Financial Advice
Basic Legal Concepts Relevant to Financial Services
Unit 2 contains the following topics:
The Financial Services Authority
Money Laundering
Complaints and Compensation
Data Protection
Other Laws and Regulations Relevant to Advising Clients.
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Typical CeMAP 1 Exam Questions Here are a couple of typical CeMAP 1 exam questions, the first is from Unit 1 and the Second from Unit 2. The questions are presented with their multiple-choice answers – see if you know the correct answer before checking at the bottom of the page! Unit 1 Question Which of the following financial needs usually becomes the priority on becoming a parent? a) Investment. b) Pensions. c) Protection. d) Savings.
Unit 2 Question Which of the following facts must be included on all quotations regulated by the Consumer Credit Act 2006? a) The annual percentage rate. b) The Bank of England base rate. c) The lender's ed office address. d) The purpose of the loan.
Correct Answers – Question 1 - c), Question 2 - a)
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The CeMAP 2 & 3 Exam Syllabus CeMAP 2 and 3 both follow the same syllabus, only the exam style is different. For CeMAP 2 the exam questions are single question, with fact based answers, whereas CeMAP 3 is examined using 6 case studies each of which has 10 questions. Looking first at CeMAP 2, the exam is split into four units, Unit 3, 4, 5 and 6. Each unit is tested using 25 questions and you must achieve 70% in each unit to the complete exam. This exam is where the syllabus goes into detail on mortgages, the mortgage industry and products. Unit 3 contains the following topics:
Borrowers
Mortgage and Property Regulation and Law
The House Buying Process
From Offer of Advance to Completion
The Economic and Regulatory Context of Mortgage Advice
Unit 4 contains the following topics:
The Role of the Mortgage Adviser
Assessment of Status
Assessment of Security
Guarantees and Additional Security
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The CeMAP 2 & 3 Exam Syllabus - Continued Looking now at the syllabus for Units 5 and 6. Unit 5 contains the following topics:
Mortgage Repayment Methods
Mortgage Products and Schemes
Other Mortgage-related Products
Unit 6 contains the following topics:
Further Advances and Remortgaging
Arrears, Debt Management and Recovery
Other Post-completion Matters
As stated earlier, you need to reach 70% in each of the four sections in order to CeMAP 2, however, if you only fail in one unit, then you only have to re-sit that unit. So, for example, if you fail Unit 5, then you only have to re-sit that unit in order to the CeMAP 2 exam. The same also applies with the two units in CeMAP 1, if you fail one of the units then you only have to re-sit that one unit.
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Typical CeMAP 2 Exam Questions Here are four typical CeMAP 2 exam questions, one taken from each of the four units. Again the questions are presented with their multiple-choice answers. See if you can answer them correctly before looking at the answers. Unit 3 Question Which of the following is true of covenants? a) They are imposed by the Land Registry. b) They are ed on with the property. c) They indicate a right one person has over the property of another. d) They 'run with the buyer'.
Unit 4 Question Alison, a self-employed consultant, has applied for a remortgage. Which of the following is her new lender least likely to ask to see when ing the information on her application form? a) A business plan. b) A self-assessment tax calculation. c) Existing mortgage statements. d) Profit and loss s covering recent years.
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Typical CeMAP 2 Exam Questions - Continued Continuing with the typical CeMAP 2 questions for Units 5 and 6. Unit 5 Question Adam and Julie both have £80,000 25-year repayment mortgages. Adam's mortgage has a fixed interest rate of 4.75% and Julie's mortgage has a capped rate of 5.50%. Both rates apply for two years. Which of the following statements is true? a) Julie may pay less than Adam at some point. b) Julie's payments will increase in the third year. c) Adam will pay a lower rate than Julie in the third year. d) Adam will pay less than Julie throughout the first two years.
Unit 6 Question Which of the following types of mortgage arrangement is least likely to have its term extended as a way of dealing with arrears? a) ISA mortgage. b) Repayment mortgage. c) Unit-linked endowment mortgage. d) With-profits endowment mortgage.
Correct Answers – Question 3 - b), Question 4 - a), Question 5 - a), Question 6 - d)
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Typical CeMAP 3 Exam Questions CeMAP 3 questions are based around 6 case studies, with 10 questions for each case. Here we will give you an example of one case study and four of the ten questions that relate to that case. Case Study - Description Alan, aged 34, and his girlfriend Dianne, aged 32, wish to tly buy a property. They have just made an offer on a house, which has been accepted. They have applied for a 90%, 20-year mortgage from Sharkey’s Bank. Whilst they are both very happy with the property, Alan is anxious to ensure the electrical system is up to modern standards. He has asked if any electrical faults would be revealed in the normal mortgage process. Alan is a sales manager and has worked for his employer for two years. His basic salary is £34,000 plus commission, which was £8,000 last year but likely to be approximately £2,000 this year. Dianne started as a full-time designer for a furniture store seven years ago, but now only works part-time. Dianne receives maintenance payments of £80 per month from her ex-husband. Alan receives an income of £1,200 p.a. from a trust set up by his grandfather and will continue to do so until he reaches the age of 60. Alan and Dianne have been offered a variable rate mortgage with a 3% discount for the first three years, but they have not yet decided upon which repayment vehicle to use. Alan favours an ISA as the repayment vehicle. Dianne has a more cautious attitude, and prefers a capital and interest mortgage. The Bank has valued the property in order to assess its adequacy for mortgage purposes.
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Typical CeMAP 3 Exam Questions - Continued CeMAP 3 questions 1 and 2: Question 1 When assessing Alan and Dianne's borrowing capacity: a) details of Dianne's previous employment are likely to be required. b) Dianne's earnings will not be taken into . c) the maintenance payments from Dianne's ex-husband may be taken into . d) the annual income from the trust fund cannot be included.
Question 2 When considering Alan's income for mortgage purposes, Sharkey’s Bank is likely to request: a) a detailed breakdown of the £8,000 commission earned last year. b) details of his pension arrangements. c) details of any benefits in kind. d) the extent to which commission income is guaranteed.
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Typical CeMAP 3 Exam Questions - Continued CeMAP 3 questions 3 and 4: Question 3 Taking into Alan's concern regarding the property, of what should he be advised regarding the standard mortgage process to satisfy his concerns? a) A full building survey would cover his requirements. b) A Home Buyer's Report would provide sufficient detail at an economic cost. c) No standard survey product will be adequate for his purposes. d) The valuation already carried out would have revealed all significant problems.
Question 4 The 3% interest rate reduction in the second year of their proposed mortgage product: a) is treated as deferred interest which will increase payments starting from year 4. b) is a genuine saving which need not be repaid if the mortgage is maintained. c) will increase payments in year 3. d) will be added to the capital owed.
Correct Answers – Question 1 - c), Question 2 - d), Question 3 - a), Question 4 - b)
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CeMAP Live Exam Format The CeMAP exams are held at the Pearson Vue Driving Theory Test Centres, and there are over 150 of these throughout the UK. This means that there should be a test centre local to you. The tests are conducted on touch-screen computers in the same way as the driving theory test. For CeMAP 1 the exam is effectively broken into two parts covering each of the two units, so you will be allocated 1 hour for Unit 1 and then 1 hour for Unit 2. For CeMAP 2, the exam session is split into four parts of 30 minutes each for each of the four units. CeMAP 3 is a single part exam of two hours duration. Some people ask whether the exams should be taken in order, i.e. 1, 2 then 3. At The Herne Group we strongly recommend that you take the exams in number order. This is because CeMAP 1 provides an excellent grounding and background to the whole of the financial services industry, so once this has been studied, the student will have a good foundation on which to build. CeMAP 2 then elaborates on the knowledge needed in relation to the mortgage market, and then CeMAP 3 applies this knowledge to real world simulations. The image below is a typical exam screenshot taken from a Mock Exam – the real exam screen is almost identical to this.
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National Differences in CeMAP for Scotland Certain aspects of the mortgage adviser role are different in Scotland when compared with the rest of the UK. In particular land law and the laws of contract are different in Scotland. Because of this, there is a different exam syllabus for students who wish to operate as mortgage advisers in Scotland, and this syllabus covers the Scottish aspects of these legal areas. Training from The Herne Group automatically includes information on both exam syllabi with a clear indication of the differences between the two exams. This means that the student only has to study the areas that are relevant to his or her exam. Very few other companies offer training for both sets of exams. Once qualified, if the mortgage adviser wishes to move her business, for example from Scotland to England, then she will need to ensure that she is fully conversant with the different legislation that is involved. England, Wales and Northern Ireland are all treated as the same for examination purposes, only Scotland has a different syllabus.
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CeMAP Questions Reviewed Having had a chance to assess some typical CeMAP questions, you may well be wondering how hard the real exam will be. In academic CeMAP is a HND level qualification, or National Qualification Level 3. This means that it is supposed to be quite demanding, after all, once qualified the successful candidate will be advising people on the largest single financial decision they ever make. It is only reasonable that the qualification to undertake this role is exacting and proportionate to the responsibility of the role. With the proper training anyone of reasonable intelligence who is prepared to work, should be capable of ing all three exams. At The Herne Group we believe in what is known as ‘blended learning’, a technique that combines different training media so as to use all of the students primary senses while studying. Using these techniques even people who haven’t studied for many years quickly get into a routine that fits their lifestyle. The next few pages will explore what makes The Herne Group training unique in the market place, and the benefits that this brings to the students.
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The Herne Group Group CeMAP Blended Training System It is a recognised fact that people have different preferred learning styles, and that by tailoring the training to a person’s style it is possible to both increase the rate of learning and also the depth of learning. In other words, by working to the students’ preferred styles, they learn faster and more thoroughly. The three main learning routes are visual, auditory, and kinaesthetic; or seeing, hearing and doing. Even more interestingly, even though everyone has a preferred style, if all three teaching styles are combined, almost every student will benefit from the variation. The Herne Group trainers have been aware of this information for many years and have always used blended learning as the way to ensure the most effective training. This knowledge is also used to great effect in the CeMAP Virtual Training Course, which is supplied on two PC CD ROMs at a cost of just £395 including VAT and delivery. This course is unique in the CeMAP training market in using visual training, audio training and key fact workbooks – no other company has made the investment required to provide such effective training. We also find that this course works better than most classroom courses because the students can work at their own pace. In the following pages we will explore in more detail how this works.
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CeMAP Video Training The video training element of the CeMAP course is provided by 27 Computer Video training courses, which will play on a PC or Laptop. In these courses The Herne Group senior trainer takes the student through the complete CeMAP syllabus step-by-step. For the student it is similar to being in a classroom but on a one-to-one basis, just like having your own personal tutor. The information is presented clearly with the help of on-screen bullet points to emphasise the key learning points. If the student does not understand anything, he or she can skip back two or three minutes and repeat the relevant information. Just like asking the trainer to repeat something you missed. This flexibility is one of the key strengths of this method of presentation, as a student you never miss a key point, you can always repeat any section until you fully understand the information. The video training programmes are also supplied with a full index of contents so if you simply want to revisit one piece of information for revision purposes, you can quickly and easily locate that section.
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CeMAP Audio Training Sitting in a room for hour after hour trying to concentrate on learning information is probably on of the least effective ways of studying. It is far more successful to break the study into smaller sessions, certainly of no more than 40 minutes each. This is where the audio training programmes are particularly effective. If you are studying over a period of time, it is highly beneficial for some of that study to be combined with some other activity, for example, walking, a visit to the gym, travelling on public transport, etc. In any of these situations, the audio training material will be indispensable. The complete syllabus is contained on the 27 MP3 files and they can be transferred onto an MP3 player or iPod and then accessed any where, any time. Many students find that listening to the material each day as they travel to and from work can greatly enhance the amount of information that they learn. Added together, this travelling time can add up to thirty or forty hours of study per month. Again, The Herne Group is the only company to provide the complete syllabus in audio form.
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CeMAP Key Facts The Herne Group Key Facts books complement the training package, giving the students the opportunity to highlight areas of special interest, write notes and add any extra information that they feel in relevant. The Key Facts books literally provide key facts, no superfluous information, and no padding. All of the facts that you need to know to the exams are in these books. Many of our students choose to print these books, bind them and then add their own notes and highlighting as they go through the training videos. These actions, of writing and highlighting, are vital for the ‘doing’ learning style for students to cement the knowledge within their minds. By engaging in this activity, the mind makes the information more solid and tangible. The Herne Group recommends that these sessions last no longer than 40 minutes and then a different learning style is adopted, for example listening to the audio training while taking a walk. In this way the student remains fresh and open to new knowledge.
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Full Tutor for CeMAP One of the biggest fears that people have with home study is, what if there is something I don’t understand? The Herne Group have a simple solution to this, we appoint a personal tutor for every student that enrols on our course. If any student has any problems at all with understanding the material, they can their tutor by e-mail and they will then receive a full written response that they can then print and keep with their notes. Typically the response is within 24 hours, and often much faster than this. Using this system, the student can study as and when he or she chooses, and then simply their tutor if any problems arise. In fact, the material is so thorough and comprehensive that many students hardly ever need to their tutors at all. However, the safety net is there if needed, so that students know they have help at hand if they ever find any part of the syllabus to be confusing. This is available for a minimum of twelve months from enrolment on the course.
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Mock Exams for CeMAP Finally, when you have completed your studies and feel ready for your final exams, the training course has mock exams for you to check your progress. These exams are paper based and follow a similar question format to the live, computerbased exams. The questions enable you to discover how well you have learned the information and if there are any areas that you need to revisit before your live exam. When undertaking these mock exams, it is recommended that you operate under exam conditions and apply a strict time limit to each part of the exam as would happen in the live exams. This will give you a good idea of the amount of time that you take to answer each question, and whether you are working too quickly or too slowly for the actual exam. After testing yourself, then the questions and answers can be used as additional revision material to help you to prepare for the final exam. In the live exam you are not allowed to take any paper or pens in with you, the test centre provides everything that you need on the day, including a calculator. All you need to bring is the knowledge to !
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The Herne Group Customer Testimonials The Herne Group is one of the longest established CeMAP training companies in the UK, with a huge number of satisfied customers. Here are some testimonials from just a few of the people who have achieved their dream of ing CeMAP: ‘Just to let you know that I took my exam today. I got a distinction in Introduction to the Financial Services Environment & Products and a merit in UK Financial Services and Regulation Thanks for your help’ - Mr E. B. ‘Just to let you know that I took my CeMAP 3 exam yesterday and ed 90%, distinction. I'm very happy with that!’ – Mr M. A. ‘I sat the UK Financial Regulation exam yesterday and ed, which I am extremely happy about!’ – Ms A. D. ‘I ed CeMAP module 1 yesterday. It was tough but I did it. 90% Distinction . I wanted to say that I have found your training & revision manual and the videos really helpful. They make learning the information easy.’ – Ms S. H. ‘Just to let you know I successfully ed CeMAP 3 on Thursday in Dunfermline. May I take this opportunity to thank you for your help and throughout my study and wish you all the best for the future. Many thanks again.’ - Mr T. C.
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Continuous Professional Development (D) Once you have ed your CeMAP exam, you keep the qualification forever. When you enter the mortgage industry, you will then be maintained up to date using Continuous Professional Development (D) that will be provided by your employer or network. D will cover all of the aspects of the industry that change over time, for example, legislation, new products, or changes in the benefits system that may affect you clients. One aspect of the role that is refreshed and retrained on a regular basis is money laundering, one of the areas of knowledge where any mortgage adviser must be proven to be proficient on an ongoing basis. The product sourcing software will keep the adviser up to date on new products on a day-to-day basis, but any new product categories, for example, when new types of mortgages are introduced, will be the subject of D training. The Financial Services Authority does not proscribe the exact amount of D that is relevant each year, but the regulations require that the advisers will maintain their knowledge up to date and at a satisfactory standard.
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We hope that this information has answered all of your questions regarding CeMAP and the Mortgage Adviser Role. Enrol Now by calling 01592 743131 and take the first steps on the road to your new career. If you have any further questions please either email [email protected] Or Call 01592 743131 for full personal advice. , the most comprehensive CeMAP Home Study Course available today can be yours for just £395 including VAT and delivery.
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Welcome to Your Guide to the Mortgage Industry and CeMAP where you will find helpful hints and tips on CeMAP and also information on the Mortgage Industry and a career in the industry. industry, stry, either as If you are contemplating a career in the mortgage indu an adviser, or as part of an istration team, then this guide will provide you with a wealth of useful information. The CeMAP exam is also surrounded by much myth and speculation which we will cut through in this guide and give you clear, clear, helpful information to help you with your future choices.
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© The Herne Group 2009. All Rights Reserved. No part of this document may be photocopied, reproduced, stored in a retrieval system, or transmitted, in any form or by any means whether, electronic, mechanical, or otherwise without the prior written permission of The Herne Group. No warranty of accuracy is given concerning the contents of the information contained in this publication. To the extent permitted by law no liability (including liability to any person by reason of negligence) will be accepted by The Herne Group, its subsidiaries or employees for any direct or indirect loss or damage caused by omissions from or inaccuracies in this document.
The Herne Group reserves the right to change details in this publication without notice.
The Herne Group, Mansebank Villa, Mansfield, Leslie, Fife, KY6 3JX 01592 743131 [email protected] www.cemap-training.com
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The Mortgage Industry
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Introduction to the Mortgage Industry For most people not already involved in the industry, the only s we have with mortgages and the people who work in the industry are when we are looking for a mortgage to buy our new home. This may involve visiting a bank or building society, or using the services of a mortgage adviser in an independent brokerage. This rare tends to lend the mortgage adviser an air of mystery that is very unhelpful if you are considering working in the industry and want to know what the role is about. The industry has also been through some tough times in the 2008/2009 ‘credit crunch’ and this has only helped to deepen peoples misconceptions and prejudices about the industry.
In the next few pages we will explore in more depth the industry, the role of the adviser in the industry, and the qualities that make a good mortgage adviser.
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The Role of the Mortgage Adviser When it comes to family finances, the mortgage adviser has one of the most important roles to play. For almost everyone, the mortgage is the largest single business transaction they make. Borrowing money to buy a house is a very longterm commitment, typically 25 years, and the sums of money involved can be anything from £60,000 to several million pounds. The mortgage adviser has to assess the client and recommend a course of action that will provide the best outcome for the client. This recommendation has to be made taking into the client’s needs, wants and preferences. The most important tool the mortgage adviser has is the Fact Find, where he or she goes through a series of questions designed to find out about the client. These questions go into great detail about the client’s financial situation, plans for the future and preferences, for instance, regarding risk. Of course, the other vitally important thing to is that the client may lose their home if anything goes wrong with the mortgage. So this is a highly responsible role that the mortgage adviser has to undertake. It is because of this responsibility that the law states that anyone giving mortgage advice must be suitably qualified, and this is where CeMAP comes into play. CeMAP is the most popular qualification for mortgage advisers and it covers all of the essential information that is needed to offer mortgage advice.
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How the Mortgage Adviser Operates Once qualified with CeMAP, the mortgage adviser is then ready to give advice to potential customers. However, the mortgage market is huge with literally thousands of different mortgage products available for the adviser to recommend. It is impossible for the adviser to know everything about every product, there just are not enough hours in the day to learn it all, and then even if the adviser had learned everything, then tomorrow it could change. So the adviser has help with this knowledge, usually in the form of specialist software that has access to all of the relevant products. The software then analyses the data that the adviser has entered related to a particular client, and then returns with a recommended shortlist of products that are likely to suit that client’s needs. The experience and knowledge of the adviser is then used to select the most suitable mortgage product from this list. This is where the adviser can use the knowledge gained at the meeting, and the so-called soft facts related to the client, and match the shortlist to the client’s needs and wants. This is what differentiates a good adviser from a poor one, and is also where an advised client gains over an inexperienced client simply shopping online for the cheapest package. An experienced adviser is able to rapidly examine the products recommended by the software, and then bring out the key features that are important for the client. From this information the adviser can then go to the client with perhaps two products to choose from that will provide the closest match to the client’s needs.
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The Skills Needed to be a Mortgage Adviser Many people think that to be a mortgage adviser you need to be a mathematical genius with a calculator for a brain. Nothing could be further from the truth. The ability most needed by a mortgage adviser is to be a good listener. The adviser has to be able to listen to the client, interpret the meaning of what is said, and translate the meaning into a language that is relevant to the resourcing software. The adviser may also need to probe the client’s responses in order to determine the true meaning behind a statement where the client’s answer may not have been totally clear. The ability to listen, to communicate clearly and to build a rapport with a client are the most important attributes that anyone can bring to the role of a mortgage adviser. Without these skills an adviser will struggle to gain their client’s trust and this will severely limit the information that the adviser will gain during the meeting. The adviser is talking to the client about personal information, including future plans that may project forward for many years. The client will not only be discussing financial issues but they may also need to discuss, for example, whether there are any plans to start a family in the foreseeable future. All of this information is relevant when advising the client on a long-term commitment such as a mortgage. For example, if with a couple, both salaries are needed to cover the mortgage payments, but the plan is for one of the people to leave work to raise a family, then this is vitally important to the mortgage arrangement. It would be irresponsible of the adviser to recommend a mortgage that could only be afforded on two salaries, if he knew that one person was likely to give up work in the medium term.
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Giving Advice on the Full Range of Products As a mortgage adviser your role is not simply to advise on mortgages, but also to examine many of the client’s other financial matters. For example, does the client have life insurance, and is it sufficient taking into all of their financial circumstances? If you have just arranged a mortgage for the client, then is their life insurance adequate given the size of the mortgage? How well is the client covered for eventualities other than death, for instance, in the case of health problems, redundancy, or permanent disability? What about the buildings and contents insurance? Have they been reviewed recently? If the client has a family then these questions are absolutely vital for the family future if anything goes wrong. As a mortgage adviser it is your job to ensure that the client is advised on his or her potential problem areas. In your analysis, if you believe that they do not have adequate cover in any of these areas, or if you feel that they are paying too much for cover from their existing supplier, then it is your duty to inform them of their options and make sure that they understand the consequences of failure to provide adequate cover. As a mortgage adviser you are qualified to advise on all of these areas, i.e. life insurance, critical illness cover, permanent health insurance, buildings and contents insurance. You are not allowed to advise on pensions or investment products.
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The Role of a Mortgage Adviser is not Restricted People often wonder if the role of adviser is suited to young rather than old, or men rather than women. The truth is that the job of a mortgage adviser is really open to anyone who can communicate with others. Whether a person is young or old, man or woman, really has no impact on their suitability as an adviser. In many ways older people who have more experience of life, tend to have a better rapport with potential clients than perhaps younger, less experienced people. However, there are still many excellent young advisers who are providing their clients with good advice. What is most important is that the adviser has the skills to build a good rapport with a new client very quickly because this then makes the Fact Find easier to complete. The client must also feel able to open up with his adviser and discuss his finances and personal situation fully. So, the important thing to is that being a mortgage adviser is genuinely open to anyone, not simply because the law says that discrimination is illegal, but because whatever your age or gender, you can bring something unique to the role. The vital skill is communication, and anyone who can communicate effectively has a good chance at becoming an excellent mortgage adviser.
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The Life of a Mortgage Adviser The typical working life of a mortgage adviser depends very much on the career path chosen. Most of the banks and building societies have staff trained as mortgage advisers who operate out of the branches. For these advisers the typical working day will be centred around helping people who approach the bank or building society for a mortgage. For this type of adviser the working day is likely to be office bound within the branch and operating on a standard nine to five basis. Alternatively, it is possible to work either selfemployed or as part of a mortgage brokerage company. In this situation the adviser often visits the clients in their own homes, and frequently these visits take place in the evenings or weekends when the client is not at work. This type of role will obviously involve an amount of travelling to and from the clients’ homes, and working into the evenings. An adviser working in this role will often have a large portion of the day free, using some of this time to process the paperwork and prospect for new clients. An expanding role for advisers is in call centres. In this situation, the adviser takes calls from clients who are looking for a mortgage and gives advice over the telephone. In this case the paperwork is then sent out to the client to check, confirm and sign after the telephone conversation.
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Mortgage Adviser Income The mortgage adviser role is still one where commission plays a part in the earnings level. The proportion of income from commission depends on the type of role, the status of the adviser and the organisation with which the adviser is involved. For example, if the adviser is employed by a bank or building society, he or she is likely to be on a basic salary plus commission or target related bonuses. In this case the salary can typically be in the £20k to £25k per annum band with commission or bonuses adding another £5k to £15k per annum. If the adviser is working for a mortgage brokerage company then the salary is likely to be less (or even zero) with the commission element much greater. In this case the on target earnings are likely to be in the range of £35k to £50k per annum. Another option is that the adviser is completely self-employed possibly working under the umbrella of a network. Obviously in this situation there is no basic salary and all of the adviser’s earnings are from commission and broker’s fees. Typically a selfemployed broker can be looking to earn anywhere from £30k to £70k or more per annum. In this case the earnings are purely determined by the adviser’s work rate and ability to help his clients. The more mortgage deals arranged by the adviser, the more money will be earned.
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The Certificate in Mortgage Advice and Practice (CeMAP)
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An Introduction to CeMAP CeMAP is the most popular qualification for mortgage advisers and it fulfils the FSA requirements of a threshold qualification for a person who wishes to become a mortgage adviser. Without this qualification, or similar, it is impossible to offer advice on mortgages. The qualification was introduced after many years of voluntary selfgovernment and codes of practice within the industry, as a result of consumer demand for more regulation. The CeMAP qualification forms the foundation upon which all further mortgage adviser knowledge is built. Once qualified with CeMAP the person is ready to begin their role as a mortgage adviser. The employer will take any new recruit through what is known as the ‘Competent Adviser’ programme which will introduce them to the company methods, products and procedures. Once the adviser has completed this programme, he or she will be able to offer mortgage advice unsupervised. So CeMAP is the ‘key to the door’ for a career as a mortgage adviser, and in the following pages we will examine the syllabus and the exams in more detail.
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The CeMAP Exam Format CeMAP is divided into three exams, CeMAP 1, 2 and 3. These exams are all conducted at the local driving theory test centre and they are all computer based multiple-choice exams. The examining body for CeMAP is the ifs School of Finance who produce the syllabus and the exam questions. The mark for each exam is 70%, with a Merit grade being awarded at 80% and a Distinction at 90%. To operate as a mortgage adviser it is only necessary to all of the exams, it is not necessary to obtain higher level es. Because the exam system is computerised, you will be told your result at the exam centre immediately after you finish your exam. Written confirmation is then sent to you directly from the ifs School of Finance. When you have successfully completed all three exams, the ifs will then issue your certificate, which is the final recognition that you have reached the necessary standard to begin your career as a mortgage adviser.
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The CeMAP 1 Exam Syllabus CeMAP 1 is split into two units, Unit 1 and Unit 2. This part of the qualification is designed to provide an overview of the financial services industry and the legal and regulatory framework around which the industry operates. Unit 1 contains the following topics:
The UK Financial Services Industry
Financial Assets
Financial Products
The Financial Planning and Advice Process
The Main Areas of Financial Advice
Basic Legal Concepts Relevant to Financial Services
Unit 2 contains the following topics:
The Financial Services Authority
Money Laundering
Complaints and Compensation
Data Protection
Other Laws and Regulations Relevant to Advising Clients.
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Typical CeMAP 1 Exam Questions Here are a couple of typical CeMAP 1 exam questions, the first is from Unit 1 and the Second from Unit 2. The questions are presented with their multiple-choice answers – see if you know the correct answer before checking at the bottom of the page! Unit 1 Question Which of the following financial needs usually becomes the priority on becoming a parent? a) Investment. b) Pensions. c) Protection. d) Savings.
Unit 2 Question Which of the following facts must be included on all quotations regulated by the Consumer Credit Act 2006? a) The annual percentage rate. b) The Bank of England base rate. c) The lender's ed office address. d) The purpose of the loan.
Correct Answers – Question 1 - c), Question 2 - a)
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The CeMAP 2 & 3 Exam Syllabus CeMAP 2 and 3 both follow the same syllabus, only the exam style is different. For CeMAP 2 the exam questions are single question, with fact based answers, whereas CeMAP 3 is examined using 6 case studies each of which has 10 questions. Looking first at CeMAP 2, the exam is split into four units, Unit 3, 4, 5 and 6. Each unit is tested using 25 questions and you must achieve 70% in each unit to the complete exam. This exam is where the syllabus goes into detail on mortgages, the mortgage industry and products. Unit 3 contains the following topics:
Borrowers
Mortgage and Property Regulation and Law
The House Buying Process
From Offer of Advance to Completion
The Economic and Regulatory Context of Mortgage Advice
Unit 4 contains the following topics:
The Role of the Mortgage Adviser
Assessment of Status
Assessment of Security
Guarantees and Additional Security
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The CeMAP 2 & 3 Exam Syllabus - Continued Looking now at the syllabus for Units 5 and 6. Unit 5 contains the following topics:
Mortgage Repayment Methods
Mortgage Products and Schemes
Other Mortgage-related Products
Unit 6 contains the following topics:
Further Advances and Remortgaging
Arrears, Debt Management and Recovery
Other Post-completion Matters
As stated earlier, you need to reach 70% in each of the four sections in order to CeMAP 2, however, if you only fail in one unit, then you only have to re-sit that unit. So, for example, if you fail Unit 5, then you only have to re-sit that unit in order to the CeMAP 2 exam. The same also applies with the two units in CeMAP 1, if you fail one of the units then you only have to re-sit that one unit.
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Typical CeMAP 2 Exam Questions Here are four typical CeMAP 2 exam questions, one taken from each of the four units. Again the questions are presented with their multiple-choice answers. See if you can answer them correctly before looking at the answers. Unit 3 Question Which of the following is true of covenants? a) They are imposed by the Land Registry. b) They are ed on with the property. c) They indicate a right one person has over the property of another. d) They 'run with the buyer'.
Unit 4 Question Alison, a self-employed consultant, has applied for a remortgage. Which of the following is her new lender least likely to ask to see when ing the information on her application form? a) A business plan. b) A self-assessment tax calculation. c) Existing mortgage statements. d) Profit and loss s covering recent years.
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Typical CeMAP 2 Exam Questions - Continued Continuing with the typical CeMAP 2 questions for Units 5 and 6. Unit 5 Question Adam and Julie both have £80,000 25-year repayment mortgages. Adam's mortgage has a fixed interest rate of 4.75% and Julie's mortgage has a capped rate of 5.50%. Both rates apply for two years. Which of the following statements is true? a) Julie may pay less than Adam at some point. b) Julie's payments will increase in the third year. c) Adam will pay a lower rate than Julie in the third year. d) Adam will pay less than Julie throughout the first two years.
Unit 6 Question Which of the following types of mortgage arrangement is least likely to have its term extended as a way of dealing with arrears? a) ISA mortgage. b) Repayment mortgage. c) Unit-linked endowment mortgage. d) With-profits endowment mortgage.
Correct Answers – Question 3 - b), Question 4 - a), Question 5 - a), Question 6 - d)
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Typical CeMAP 3 Exam Questions CeMAP 3 questions are based around 6 case studies, with 10 questions for each case. Here we will give you an example of one case study and four of the ten questions that relate to that case. Case Study - Description Alan, aged 34, and his girlfriend Dianne, aged 32, wish to tly buy a property. They have just made an offer on a house, which has been accepted. They have applied for a 90%, 20-year mortgage from Sharkey’s Bank. Whilst they are both very happy with the property, Alan is anxious to ensure the electrical system is up to modern standards. He has asked if any electrical faults would be revealed in the normal mortgage process. Alan is a sales manager and has worked for his employer for two years. His basic salary is £34,000 plus commission, which was £8,000 last year but likely to be approximately £2,000 this year. Dianne started as a full-time designer for a furniture store seven years ago, but now only works part-time. Dianne receives maintenance payments of £80 per month from her ex-husband. Alan receives an income of £1,200 p.a. from a trust set up by his grandfather and will continue to do so until he reaches the age of 60. Alan and Dianne have been offered a variable rate mortgage with a 3% discount for the first three years, but they have not yet decided upon which repayment vehicle to use. Alan favours an ISA as the repayment vehicle. Dianne has a more cautious attitude, and prefers a capital and interest mortgage. The Bank has valued the property in order to assess its adequacy for mortgage purposes.
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Typical CeMAP 3 Exam Questions - Continued CeMAP 3 questions 1 and 2: Question 1 When assessing Alan and Dianne's borrowing capacity: a) details of Dianne's previous employment are likely to be required. b) Dianne's earnings will not be taken into . c) the maintenance payments from Dianne's ex-husband may be taken into . d) the annual income from the trust fund cannot be included.
Question 2 When considering Alan's income for mortgage purposes, Sharkey’s Bank is likely to request: a) a detailed breakdown of the £8,000 commission earned last year. b) details of his pension arrangements. c) details of any benefits in kind. d) the extent to which commission income is guaranteed.
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Typical CeMAP 3 Exam Questions - Continued CeMAP 3 questions 3 and 4: Question 3 Taking into Alan's concern regarding the property, of what should he be advised regarding the standard mortgage process to satisfy his concerns? a) A full building survey would cover his requirements. b) A Home Buyer's Report would provide sufficient detail at an economic cost. c) No standard survey product will be adequate for his purposes. d) The valuation already carried out would have revealed all significant problems.
Question 4 The 3% interest rate reduction in the second year of their proposed mortgage product: a) is treated as deferred interest which will increase payments starting from year 4. b) is a genuine saving which need not be repaid if the mortgage is maintained. c) will increase payments in year 3. d) will be added to the capital owed.
Correct Answers – Question 1 - c), Question 2 - d), Question 3 - a), Question 4 - b)
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CeMAP Live Exam Format The CeMAP exams are held at the Pearson Vue Driving Theory Test Centres, and there are over 150 of these throughout the UK. This means that there should be a test centre local to you. The tests are conducted on touch-screen computers in the same way as the driving theory test. For CeMAP 1 the exam is effectively broken into two parts covering each of the two units, so you will be allocated 1 hour for Unit 1 and then 1 hour for Unit 2. For CeMAP 2, the exam session is split into four parts of 30 minutes each for each of the four units. CeMAP 3 is a single part exam of two hours duration. Some people ask whether the exams should be taken in order, i.e. 1, 2 then 3. At The Herne Group we strongly recommend that you take the exams in number order. This is because CeMAP 1 provides an excellent grounding and background to the whole of the financial services industry, so once this has been studied, the student will have a good foundation on which to build. CeMAP 2 then elaborates on the knowledge needed in relation to the mortgage market, and then CeMAP 3 applies this knowledge to real world simulations. The image below is a typical exam screenshot taken from a Mock Exam – the real exam screen is almost identical to this.
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National Differences in CeMAP for Scotland Certain aspects of the mortgage adviser role are different in Scotland when compared with the rest of the UK. In particular land law and the laws of contract are different in Scotland. Because of this, there is a different exam syllabus for students who wish to operate as mortgage advisers in Scotland, and this syllabus covers the Scottish aspects of these legal areas. Training from The Herne Group automatically includes information on both exam syllabi with a clear indication of the differences between the two exams. This means that the student only has to study the areas that are relevant to his or her exam. Very few other companies offer training for both sets of exams. Once qualified, if the mortgage adviser wishes to move her business, for example from Scotland to England, then she will need to ensure that she is fully conversant with the different legislation that is involved. England, Wales and Northern Ireland are all treated as the same for examination purposes, only Scotland has a different syllabus.
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CeMAP Questions Reviewed Having had a chance to assess some typical CeMAP questions, you may well be wondering how hard the real exam will be. In academic CeMAP is a HND level qualification, or National Qualification Level 3. This means that it is supposed to be quite demanding, after all, once qualified the successful candidate will be advising people on the largest single financial decision they ever make. It is only reasonable that the qualification to undertake this role is exacting and proportionate to the responsibility of the role. With the proper training anyone of reasonable intelligence who is prepared to work, should be capable of ing all three exams. At The Herne Group we believe in what is known as ‘blended learning’, a technique that combines different training media so as to use all of the students primary senses while studying. Using these techniques even people who haven’t studied for many years quickly get into a routine that fits their lifestyle. The next few pages will explore what makes The Herne Group training unique in the market place, and the benefits that this brings to the students.
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The Herne Group Group CeMAP Blended Training System It is a recognised fact that people have different preferred learning styles, and that by tailoring the training to a person’s style it is possible to both increase the rate of learning and also the depth of learning. In other words, by working to the students’ preferred styles, they learn faster and more thoroughly. The three main learning routes are visual, auditory, and kinaesthetic; or seeing, hearing and doing. Even more interestingly, even though everyone has a preferred style, if all three teaching styles are combined, almost every student will benefit from the variation. The Herne Group trainers have been aware of this information for many years and have always used blended learning as the way to ensure the most effective training. This knowledge is also used to great effect in the CeMAP Virtual Training Course, which is supplied on two PC CD ROMs at a cost of just £395 including VAT and delivery. This course is unique in the CeMAP training market in using visual training, audio training and key fact workbooks – no other company has made the investment required to provide such effective training. We also find that this course works better than most classroom courses because the students can work at their own pace. In the following pages we will explore in more detail how this works.
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CeMAP Video Training The video training element of the CeMAP course is provided by 27 Computer Video training courses, which will play on a PC or Laptop. In these courses The Herne Group senior trainer takes the student through the complete CeMAP syllabus step-by-step. For the student it is similar to being in a classroom but on a one-to-one basis, just like having your own personal tutor. The information is presented clearly with the help of on-screen bullet points to emphasise the key learning points. If the student does not understand anything, he or she can skip back two or three minutes and repeat the relevant information. Just like asking the trainer to repeat something you missed. This flexibility is one of the key strengths of this method of presentation, as a student you never miss a key point, you can always repeat any section until you fully understand the information. The video training programmes are also supplied with a full index of contents so if you simply want to revisit one piece of information for revision purposes, you can quickly and easily locate that section.
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CeMAP Audio Training Sitting in a room for hour after hour trying to concentrate on learning information is probably on of the least effective ways of studying. It is far more successful to break the study into smaller sessions, certainly of no more than 40 minutes each. This is where the audio training programmes are particularly effective. If you are studying over a period of time, it is highly beneficial for some of that study to be combined with some other activity, for example, walking, a visit to the gym, travelling on public transport, etc. In any of these situations, the audio training material will be indispensable. The complete syllabus is contained on the 27 MP3 files and they can be transferred onto an MP3 player or iPod and then accessed any where, any time. Many students find that listening to the material each day as they travel to and from work can greatly enhance the amount of information that they learn. Added together, this travelling time can add up to thirty or forty hours of study per month. Again, The Herne Group is the only company to provide the complete syllabus in audio form.
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CeMAP Key Facts The Herne Group Key Facts books complement the training package, giving the students the opportunity to highlight areas of special interest, write notes and add any extra information that they feel in relevant. The Key Facts books literally provide key facts, no superfluous information, and no padding. All of the facts that you need to know to the exams are in these books. Many of our students choose to print these books, bind them and then add their own notes and highlighting as they go through the training videos. These actions, of writing and highlighting, are vital for the ‘doing’ learning style for students to cement the knowledge within their minds. By engaging in this activity, the mind makes the information more solid and tangible. The Herne Group recommends that these sessions last no longer than 40 minutes and then a different learning style is adopted, for example listening to the audio training while taking a walk. In this way the student remains fresh and open to new knowledge.
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Full Tutor for CeMAP One of the biggest fears that people have with home study is, what if there is something I don’t understand? The Herne Group have a simple solution to this, we appoint a personal tutor for every student that enrols on our course. If any student has any problems at all with understanding the material, they can their tutor by e-mail and they will then receive a full written response that they can then print and keep with their notes. Typically the response is within 24 hours, and often much faster than this. Using this system, the student can study as and when he or she chooses, and then simply their tutor if any problems arise. In fact, the material is so thorough and comprehensive that many students hardly ever need to their tutors at all. However, the safety net is there if needed, so that students know they have help at hand if they ever find any part of the syllabus to be confusing. This is available for a minimum of twelve months from enrolment on the course.
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Mock Exams for CeMAP Finally, when you have completed your studies and feel ready for your final exams, the training course has mock exams for you to check your progress. These exams are paper based and follow a similar question format to the live, computerbased exams. The questions enable you to discover how well you have learned the information and if there are any areas that you need to revisit before your live exam. When undertaking these mock exams, it is recommended that you operate under exam conditions and apply a strict time limit to each part of the exam as would happen in the live exams. This will give you a good idea of the amount of time that you take to answer each question, and whether you are working too quickly or too slowly for the actual exam. After testing yourself, then the questions and answers can be used as additional revision material to help you to prepare for the final exam. In the live exam you are not allowed to take any paper or pens in with you, the test centre provides everything that you need on the day, including a calculator. All you need to bring is the knowledge to !
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The Herne Group Customer Testimonials The Herne Group is one of the longest established CeMAP training companies in the UK, with a huge number of satisfied customers. Here are some testimonials from just a few of the people who have achieved their dream of ing CeMAP: ‘Just to let you know that I took my exam today. I got a distinction in Introduction to the Financial Services Environment & Products and a merit in UK Financial Services and Regulation Thanks for your help’ - Mr E. B. ‘Just to let you know that I took my CeMAP 3 exam yesterday and ed 90%, distinction. I'm very happy with that!’ – Mr M. A. ‘I sat the UK Financial Regulation exam yesterday and ed, which I am extremely happy about!’ – Ms A. D. ‘I ed CeMAP module 1 yesterday. It was tough but I did it. 90% Distinction . I wanted to say that I have found your training & revision manual and the videos really helpful. They make learning the information easy.’ – Ms S. H. ‘Just to let you know I successfully ed CeMAP 3 on Thursday in Dunfermline. May I take this opportunity to thank you for your help and throughout my study and wish you all the best for the future. Many thanks again.’ - Mr T. C.
For Free Detailed Personal Advice Please call 01592 743131
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Continuous Professional Development (D) Once you have ed your CeMAP exam, you keep the qualification forever. When you enter the mortgage industry, you will then be maintained up to date using Continuous Professional Development (D) that will be provided by your employer or network. D will cover all of the aspects of the industry that change over time, for example, legislation, new products, or changes in the benefits system that may affect you clients. One aspect of the role that is refreshed and retrained on a regular basis is money laundering, one of the areas of knowledge where any mortgage adviser must be proven to be proficient on an ongoing basis. The product sourcing software will keep the adviser up to date on new products on a day-to-day basis, but any new product categories, for example, when new types of mortgages are introduced, will be the subject of D training. The Financial Services Authority does not proscribe the exact amount of D that is relevant each year, but the regulations require that the advisers will maintain their knowledge up to date and at a satisfactory standard.
For Free Detailed Personal Advice Please call 01592 743131
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We hope that this information has answered all of your questions regarding CeMAP and the Mortgage Adviser Role. Enrol Now by calling 01592 743131 and take the first steps on the road to your new career. If you have any further questions please either email [email protected] Or Call 01592 743131 for full personal advice. , the most comprehensive CeMAP Home Study Course available today can be yours for just £395 including VAT and delivery.
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For Free Detailed Personal Advice Please call 01592 743131
Page 35 of 36
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