Mortgage Agent Final Exam prep UPDATED Exam Questions and CORRECT Answers
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Course
Mortgage Agent
Institution
Mortgage Agent
Mortgage Agent Final Exam prep
UPDATED Exam Questions and
CORRECT Answers
a) T4: typically when a Borrower has salaried or hourly employment income
b) T4A: typically when a Borrower has commission income
c) Job Letter: typically when a Borrower's income or position information is required
d)...
Mortgage Agent Final Exam prep
UPDATED Exam Questions and
CORRECT Answers
a) T4: typically when a Borrower has salaried or hourly employment income
b) T4A: typically when a Borrower has commission income
c) Job Letter: typically when a Borrower's income or position information is required
d) Paystub: typically in addition to a Job Letter to confirm that the individual is still
employed and that the YTD income matches the Job Letter
e) NOA: typically to support income verification for a previous year and/or to confirm that
there are no income taxes outstanding
f) Agreement of Purchase and Sale: typically when a Borrower is purchasing a property
g) Gift Letter: if the Borrower is using funds for his or her down payment that has been given
to him or her by a family member
h) Property Assessment: can be used by the Agent to support the Borrower's value of his or
her house. It is not used to confirm the value nor will the Lender accept this, but it can
support the value.
i) Property Tax Bill: u - Correct Answer- 1. Briefly describe when a Mortgage Agent would
be required to obtain the following documents from an applicant.
This must be completed in every transaction, since part of the application is the waiver. If the
Borrower(s) want the insurance the full application must be completed, if they do not they
must complete the waiver section. - Correct Answer- Under what circumstances must a
Mortgage Agent complete a Creditor Insurance Application?
It should be on company letterhead, have the company address and contact information, list
the Borrower's position, income, how it is paid (i.e. salary or hourly), the frequency of
payment (i.e. weekly), if the person is full or part-time and/or on probation, the start date and
the writer's information and contact information. - Correct Answer- What information must
be in a Job Letter for it to be acceptable to a Lender?
This document proves that an individual has been given advice by his or her lawyer with
regards to the proposed mortgage. It is usually required when the proceeds of a refinance are
being provided to a third party and not the Borrower or if the loan is a reverse mortgage. -
Correct Answer- What is a Certificate of Independent Legal Advice and under what
circumstances would it be required?
,On a T4A in box 61 is where the Payer's Business Number (BN) should appear. It SHOULD
remain blank and if it is not then the agent needs to verify the slip is legitimate. - Correct
Answer- On a T4A slip in Box 61 what information should appear?
.On a T4 slip Box 54 is where the Business Number would be. A business number should
NOT appear on the T4 copies. This could indicate it is a fraud. Agent must then verify
information. - Correct Answer- On a T4 slips in Box 54, what would be an indicator that this
is a fraudulent document?
In box 18 on a T4 slip should appear the employees EI premiums. These deductions should
not exceed maximum EI taxable.
EG.
2011- 786.76
2010 - 747.36
1009 - 731.79
2008 - 711.03
If amount exceeds these numbers could mean document is a fraud - Correct Answer- On a T4
slip what should appear in Box 18?
In Box 22 on a T4 slip should indicate the employees income tax deducted.
2011 fed rates:
15% for 1st 41,544
22% on next 41,544 (taxable income between 41,544 and 83,088)
26% on next 45, 712 (taxable income between83,088 & 128,800)
29% of taxable income over 128,000
Ontario rates:
5.05% on 1st 37,774 of taxable income
9.15% on next 37,776
11.16% on amount over 75,550 - Correct Answer- On a T4 slip what should appear in box
22?
, A tax bill is required in a switch or refinance. This is to ensure prop taxes are up to date. -
Correct Answer- When is a tax bill required?
Information on a debt, found in a credit report, that contains the date that the credit was
granted, the balance, terms and repayment history - Correct Answer- Define the term trade
line
Payment History, Amounts Owed, Length of Credit History, New Credit and Inquiries, Types
of Credit, and Number of Trades on File are all used to calculate a credit score. - Correct
Answer- Discuss the items that are involved in calculating a credit score
Public Records section - Correct Answer- If an individual has a judgment filed against him or
her, in what section of a credit bureau would this information be found?
This is a revolving account such as a credit card and it is 2 months in arrears. - Correct
Answer- If an individual has an account rated as an R3 on his or her credit bureau, what type
of credit is this rating referring to and how many months in arrears is this account?
The lower the credit score the higher the delinquency rate. - Correct Answer- What is the
relationship between a credit score and the delinquency rates of Canadians?
a) Equifax? 6 years.
b) Transunion? 7 years. - Correct Answer- How long does a bankruptcy remain on an
individual's credit report provided by
a) Equifax? 3 years.
b) Transunion? 2 years. - Correct Answer- How long does credit counseling remain on an
individual's credit report provided by:
Contact the Credit Bureau to remove the item. - Correct Answer- If an individual disputes an
item in his or her credit report, what can he or she do?
No, a Borrower must contact the Credit Bureau directly for this report. - Correct Answer- Can
a Mortgage Agent provide a copy of a client's credit report to the borrower?
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