Due to delays in loan processing, client has lodged a complaint with you (the mortgage broker) about the time it's taking to get an approval on the loan. Although you've explained that this is because of delays with the lenders processing system due to staff shortages, you're concerned the matter may escalate beyond your control.

1. Provide a response to client explaining the process going forward and what actions you will take regarding his complaint.
2. Produce a short report which identifies and recommends ways that you may be able to improve these Policies and Procedures, to keep clients up to date on the progress of the loan application
3. As a broker it is important to understand the role of the Financial Ombudsman. Explain the function and role of the Australian Financial Complaints Authority (AFCA) in the External Dispute Resolution (EDR) process and the options available to the claimant once a determination is made.
4. What could be the maximum financial compensation limit amount payable to a consumer borrower through AFCA for a claim for direct financial loss?