PERSONAL AND MORTGAGE LENDING THEORY AND PRACTICE

SHE Level 3
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code M3N325849
Module Leader Paul Gallacher
School Glasgow School for Business and Society
Subject Finance and Accounting
Trimester
  • B (January start)

Pre-Requisite Knowledge

Personal Finance and Investment or Financial Services Environment 1 or equivalent.

Summary of Content

This module examines the dynamics of the personal lending markets with a particular focus on the UK mortgage market. The key influencing factors will be examined. The module will explore the theory of lending together with the practical processes involved in the industry. Contemporary issues across worldwide personal lending markets will be explored along with potential future developments. Ethical considerations associated with responsible personal lending will be examined by exploring some of the more contemporary issues related to assessment of credit risk. Comparison of international personal lending markets with be explored through on line engagement with partners or industry in international markets.

Syllabus

The personal lending market introduction; The mortgage market and its key external influencers; Comparison of UK v international markets mortgage law; The house buying process and the parties involved; How do lenders assess security of title?; What are the varying forms of security attached to personal lending?; How do lenders satisfy themselves of the ability of the borrower to pay?; Mortgage regulation and its impact on the customer advice process Personal loans - Product examination and comparison Credit Card, Payday and other types of lending - what are the ethical issues?; What do we mean by responsible lending?; Mortgage Loans - Product examination and comparison market differentiation - Islamic Finance approach to personal lending Market differentiation; the over 55 and the pensions crisis - lenders response and the ethical considerations surrounding lending to the elderly; Contemporary issues in international personal and mortgage lending.

Learning Outcomes

On successful completion of this module, the student should be able to: 1. Understand the dynamics at play in personal lending markets 2. Explain how lenders access security and the ability of borrowers to repay loans 3. Outline the pros and cons along with detailed terms of personal lending products 4. Discuss the major legal factors involved in the house buying and mortgage process in the UK5. Understanding the contemporary issues and developments in the international personal lending markets

Teaching / Learning Strategy

The module provides a combination of lectures, seminars, practical and project based activity. In lectures the theory and overall practice will be explored. Seminars will provide the medium for teamwork and presentation skills to be utilised in enhancing knowledge and analysing particular aspects of the module. E-learning will involve the use of GCU Learn discussion boards, skype and other medium for practical discussions with lenders and others engaged in the industry. The e-learning will support practical application of the theory of lending. This will also facilitate international exploration with students or industry experts in international lending markets. Guest speakers from the industry will provide an insight into the current issues facing the lending industry. The coursework will test the students understanding of the technical and theoretical aspects of the modular content. The module provides a combination of lectures, seminars, practical and project based activity. In lectures the theory and overall practice will be explored. Seminars will provide the medium for teamwork and presentation skills to be utilised in enhancing knowledge and analysing particular aspects of the module. E-learning will involve the use of GCU Learn discussion boards, skype and other medium for practical discussions with lenders and others engaged in the industry. The e-learning will support practical application of the theory of lending. This will also facilitate international exploration with students or industry experts in international lending markets. Guest speakers from the industry will provide an insight into the current issues facing the lending industry. The coursework will test the students understanding of the technical and theoretical aspects of the modular content. The examination will test the critical thinking of the students and assess the ability to apply theory to practical application. Feedback will comply with GSBS turnaround times and will be facilitated by on-line feedback where appropraite to facilitate performance improvement. GSBS will continue to use the advancement of GCU Learn as a blended learning tool through its teaching and learning as well as through engagement with students. GSBS will ensure that all modules are GCU Learn enabled and with the support of the Learning Technologists at the cutting edge of development of online materials. Academic staff and the Learning Technologists will continue to work together to develop and operate all modules on GCU Learn to ensure student support and information sharing. Students are provided with formative and summative feedback via a variety of mechanisms. Feedback on coursework is provided within 3 working weeks of submission.

Indicative Reading

Core textbook: Souster, B., 2019. Mortgage Advice, 2019-20 Study text. London: Chartered Insurance Institute. (Nb this book has to be purchased direct from University and NOT through Book Shop). This book is essential reading and it is expected that all students taking the module will purchase a copy. Additional recommended reading is through industry web sites and the financial press. Examples are: Council of Mortgage Lenders www.cml.org.uk Building Societies Association www.bsa.org.uk Financial Conduct Authority www.fca.org.uk Chartered Insurance Institute www.cii.co.uk Chartered Institute for Securities and Investment www.cisi.org.uk Chartered Institute of Bankers in Scotland www.ciobs.org.uk The Scottish Government www.gov.scot Mortgage Advice Bureau www.mortgageadvicebureau.com

Transferrable Skills

By the end of this module students will have gained competence in the following key areas: Oral and written communication Research using own initiative Critical thinking and analysis Teamwork Presentation skills Engagement with industry practitioners

Module Structure

Activity Total Hours
Assessment (FT) 18.00
Independent Learning (FT) 146.00
Lectures (FT) 24.00
Seminars (FT) 12.00

Assessment Methods

Component Duration Weighting Threshold Description
Course Work 01 n/a 40.00 35% Online MCQ Assessment to be held in Week 8.
Exam 01 2.00 60.00 35% Final Examination (35% min. applies) Formal 2 hour examination