Podcast
Questions and Answers
What is a critical step in the transaction process for the borrower?
What is a critical step in the transaction process for the borrower?
- Lender submission
- Meeting conditions
- Completing the borrower's application (correct)
- Disclosure
What is the purpose of completing a Know Your Client form in the initial consultation with a potential private investor?
What is the purpose of completing a Know Your Client form in the initial consultation with a potential private investor?
- To provide the investor with investment options.
- To determine the viability of the investor as a private lender. (correct)
- To discuss potential returns on investments.
- To obtain confirmation of income from the investor.
Why is it important to gather documents like income confirmation and documentary evidence during the initial consultation with a potential private investor?
Why is it important to gather documents like income confirmation and documentary evidence during the initial consultation with a potential private investor?
- To assess the investor's credit score.
- To confirm the availability of funds for lending. (correct)
- To analyze the profitability of the broker's investments.
- To verify if the investor has no other investments.
Which step is essential from a compliance standpoint in the transaction process?
Which step is essential from a compliance standpoint in the transaction process?
What is one of the main steps in the initial consultation process?
What is one of the main steps in the initial consultation process?
What is the purpose of having a confidentiality agreement in place with a potential private investor?
What is the purpose of having a confidentiality agreement in place with a potential private investor?
Why is confirming identity important in the initial consultation?
Why is confirming identity important in the initial consultation?
Why should a potential private investor be provided with a summary of an investment before receiving full borrower information?
Why should a potential private investor be provided with a summary of an investment before receiving full borrower information?
What type of documents should be requested if the funds being invested are on deposit at a financial institution?
What type of documents should be requested if the funds being invested are on deposit at a financial institution?
When should obtaining consent to pull a credit report ideally take place?
When should obtaining consent to pull a credit report ideally take place?
Why is it important to discuss the risk profiles of different investments with a potential private investor during the initial consultation?
Why is it important to discuss the risk profiles of different investments with a potential private investor during the initial consultation?
What is a primary purpose of completing a borrower needs' analysis during the initial consultation?
What is a primary purpose of completing a borrower needs' analysis during the initial consultation?
When should the licensee determine the investor's decision to renew the mortgage?
When should the licensee determine the investor's decision to renew the mortgage?
What type of information should be shared with the investor if obtained post funding?
What type of information should be shared with the investor if obtained post funding?
How should the licensee handle information received from the borrower that impacts the investor?
How should the licensee handle information received from the borrower that impacts the investor?
What should the licensee do if the borrower indicates inability to make a payment?
What should the licensee do if the borrower indicates inability to make a payment?
Why is early communication with the investor important?
Why is early communication with the investor important?
What should be included in ongoing communication with the investor?
What should be included in ongoing communication with the investor?
What is a key document helpful to determine the suitability of a potential investor?
What is a key document helpful to determine the suitability of a potential investor?
In what circumstances must both the borrower and private investor have their own lawyer?
In what circumstances must both the borrower and private investor have their own lawyer?
What should be done if the investor has a preferred lawyer?
What should be done if the investor has a preferred lawyer?
What type of ongoing communication should a licensee have with the investor about their investment?
What type of ongoing communication should a licensee have with the investor about their investment?
Who typically pays for the lawyer's fee in a private mortgage transaction?
Who typically pays for the lawyer's fee in a private mortgage transaction?
What is the purpose of analyzing the borrower’s credit?
What is the purpose of analyzing the borrower’s credit?
Why is it recommended for an investor to have a lawyer experienced in private mortgages?
Why is it recommended for an investor to have a lawyer experienced in private mortgages?
Besides an appraisal, what tool can a licensee use to estimate an applicant’s property value?
Besides an appraisal, what tool can a licensee use to estimate an applicant’s property value?
Is a borrower liable for broker fees if they back out of a transaction after signing the borrower disclosure?
Is a borrower liable for broker fees if they back out of a transaction after signing the borrower disclosure?
What does it mean to 'meet conditions' in a lender's commitment letter?
What does it mean to 'meet conditions' in a lender's commitment letter?
Which of the following is NOT a condition that may need to be met before funding a mortgage?
Which of the following is NOT a condition that may need to be met before funding a mortgage?
What is one of the risks associated with using a private lender based on the text?
What is one of the risks associated with using a private lender based on the text?
