Reference no: EM133069300

1. Both Borrowers and Lenders make certain assumptions regarding dealing with a Mortgage Agent or Broker. Regarding the Borrower's assumptions, which of the following statements is most correct?

a. The Broker/Agent acts in the Lender's best interests

b. The Broker/Agent acts in the Borrower's best interests

c. The Broker/Agent acts in his or her own best interests

d. The Broker/Agent acts in the best interests of everyone in the transaction

2. Both Borrowers and Lenders make certain assumptions regarding dealing with a Mortgage Agent or Broker. Regarding the Lender's assumptions, which of the following statements is most correct?

a. The Broker/Agent will try to get every deal approved by the Lender, whether it "fits" or not

b. The Broker/Agent will most likely forge documents to obtain an approval

c. The Broker/Agent will try to get a Borrower who fits the Lender's guidelines

d. The Broker/Agent will never forge documents to obtain an approval

3. You have taken an application from a client and are now in the process of deciding which Lender to submit it to. You have come to the conclusion that out of all of the Lenders, one offers the products most suitable for your client. After choosing the right product, you decide to calculate how much of a finder's fee this Lender will pay upon successful completion of the transaction. Given the fact that this mortgage is $325,000 and the Lender's finder's fee is 75 bps, how much would lender pay your brokerage?

a. $24,375.00

b. $2,437.00

c. $2,437.50

d. You cannot be sure

4. Your client, whose mortgage is CMHC insured as well as Title insured, has contacted you and informed you that he is currently behind one mortgage payment because he has lost his job, and would like your advice on how to handle this situation. He has further informed you that he is starting a new job next week. Out of the following four options, which one is most correct?

a. He should contact the Lender directly to discuss default management options through CMHC

b. He should contact CMHC directly to discuss default management options available to him

c. He should contact his Lender directly to discuss the workout options available through the Title insurer

d. He should contact the Title insurer directly to discuss the workout options available to him

5. Your have determined that your client requires a mortgage that has Genworth mortgage default insurance. Given this scenario, which of the following statements is most correct?

a. The default premium must be paid upfront by your client prior to closing

b. The default premium may be added to the mortgage loan on closing

c. The default premium must be added to the mortgage loan on closing

d. The default premium cannot be included in the loan amount