Practice of Mortgage Brokerage – Real Estate Certification Exam- Question and Answers [100% Correct] 2025 Latest Release
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Course
RECA
Institution
RECA
Practice of Mortgage Brokerage – Real
Estate Certification Exam- Question and
Answers [100% Correct] 2025 Latest
Release
A mortgage broker is required to disclose their commission structure to the borrower in which of the
following scenarios?
Before finalizing the loan agreement, in...
Practice of Mortgage Brokerage – Real
Estate Certification Exam- Question and
Answers [100% Correct] 2025 Latest
Release
A mortgage broker is required to disclose their commission structure to the borrower in which of the
following scenarios?
Before finalizing the loan agreement, in writing.
Which of the following best describes the primary responsibility of a mortgage broker?
To facilitate the connection between borrowers and lenders, securing loan terms that suit both
parties.
A mortgage broker receives a payment for their services based on the loan’s principal amount. This
payment structure is known as:
A percentage-based commission.
Which document must a mortgage broker provide to a borrower at the time of the loan application to
comply with the Truth in Lending Act (TILA)?
The Loan Estimate.
If a borrower applies for a loan and the mortgage broker fails to inform them of all associated fees, this
could be a violation of:
The Real Estate Settlement Procedures Act (RESPA).
In a scenario where a mortgage broker is involved in the closing of a loan, who is responsible for
ensuring the accuracy of the settlement statement?
The mortgage broker is responsible, as they must confirm all charges are disclosed properly.
1
,A mortgage broker working with a borrower is required to submit the loan application to which party for
approval?
A lender, which can be a bank or financial institution.
A mortgage broker's fiduciary duty includes which of the following?
To act in the best interest of the borrower by providing transparent and unbiased information.
Which of the following best defines the term "broker compensation" in mortgage brokering?
The fees paid to the broker for securing a loan, which can be in the form of points, a flat fee, or a
combination.
If a mortgage broker is also acting as the loan originator, what regulatory rule must they comply with?
They must follow all applicable state and federal guidelines for both mortgage brokerage and loan
origination activities.
Under what circumstance must a mortgage broker issue a Good Faith Estimate (GFE)?
When the borrower applies for a federally regulated mortgage loan.
Which of the following actions is considered an ethical violation for a mortgage broker?
Steering a borrower toward a loan with a higher interest rate to receive a higher commission.
In what way does a mortgage broker differentiate from a mortgage banker?
A mortgage broker does not lend money directly but connects borrowers to lenders, while a
mortgage banker originates loans using their own funds.
What is the primary purpose of the Mortgage Broker License Act?
To regulate and ensure the ethical practices of mortgage brokers within the industry.
Which of the following best describes a situation in which a mortgage broker would be in violation of the
law?
2
, Accepting kickbacks from a third-party service provider in exchange for recommending their
services to the borrower.
When must a mortgage broker provide a borrower with a disclosure of the loan terms and fees?
No later than three business days after receiving the borrower’s application.
A mortgage broker’s fiduciary duty includes which of the following actions?
Disclosing all material facts regarding the loan and acting in the best interest of the borrower.
A mortgage broker recommends an adjustable-rate mortgage (ARM) to a borrower without fully
explaining the risk of rate increases. This action is most likely a violation of:
The duty to make suitable loan recommendations based on the borrower’s financial situation.
Which of the following regulations requires mortgage brokers to offer borrowers a chance to review all
terms before closing?
The Real Estate Settlement Procedures Act (RESPA).
If a mortgage broker fails to provide a Loan Estimate within three days of receiving an application, what
is the potential consequence?
The broker may be subject to fines or disciplinary action by the state regulatory body.
In the case of a borrower disputing the terms provided by a mortgage broker, which document will be
critical in resolving the issue?
The Loan Estimate or Closing Disclosure, as it outlines all agreed-upon terms and fees.
A mortgage broker receives a kickback for recommending a particular title company to a borrower. This
action is illegal under which act?
The Real Estate Settlement Procedures Act (RESPA).
Which type of mortgage loan can a mortgage broker arrange for a borrower that is not federally
regulated?
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