Private Mortgages Licensing
Course -Agent Level 2 Ontario
Practice Exam
Question 1
Of the statements below, which scenario likely requires a private lender?
Select all that apply.
- The borrower is buying a house whose closing date is four months away.
- The borrower is buying a house whose closing date is four days away.
- The borrower is buying a duplex that is vacant and in need of major
renovations.
- The borrower has average income and wants to consolidate their debt.
Question 2
Which of the statements below is a potential conflict of interest for the
lender/Investor?
- Fails to disclose all potential issues to the borrower.
- Chooses a lender that is offering a higher commission instead of a lender
with a better rate for the borrower.
- Fails to disclose they are working on behalf of both the borrower and
lender/Investor.
- Presents a deal to a lender without an exit plan.
Question 3
What are the two types of risks that Agents/Brokers should discuss with
their clients?
- Probability of default and credit default risks
, Passed!!
2024/2025
- Concentration risk exposure and default risk
- Country risk and institutional risk
- General and specific risks
Question 4
Mortgage professionals must protect the borrowers' information. They
must only use and disclose it with the borrower's consent or as compelled
by law. This is a definition of which MBRCC Code of Conduct?
- Disclosure
- Honesty
- Security and Confidentiality
- Accountability
Question 5
Which of these is a red flag for appraisal fraud?
- Altered or forged identities and documentation.
- The occupancy status is 'unknown' rather than a tenant- or owner-
occupied.
- An urgent deadline.
- The borrower's picture and ID information do not match other sources of
information.
Question 6
What task a mortgage Administrator is NOT responsible for?
- Processing renewals
- Record keeping
- Signing Form 1
- Preparing mortgage discharges
Question 7
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