Mortgage Administration Role Quiz
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Questions and Answers

What is one of the duties of a mortgage administrator?

  • Assessing credit scores of potential borrowers
  • Selling properties on behalf of borrowers
  • Providing mortgage loans to borrowers
  • Enforcing payment through the power of sale process (correct)

    • How much financial guarantee must a mortgage administrator maintain to get licensed?

  • $100,000
  • $10,000
  • $25,000 (correct)
  • $50,000

    • Can a mortgage administrator be a corporation?

  • No, only sole proprietorships are allowed
  • Yes, corporations, partnerships, and sole proprietorships are allowed (correct)
  • No, only partnerships are allowed
  • Yes, only corporations are allowed

    • What type of insurance must a mortgage administrator maintain?

    <p>Errors and omissions insurance</p> Signup and view all the answers

    What is the penalty for failing to notify FSRA about the cancellation of the financial guarantee?

    <p>$1,000 penalty</p> Signup and view all the answers

    What does E and O stand for in the context of mortgage administration?

    <p>Errors and Omissions</p> Signup and view all the answers

    What is the minimum coverage required by insurance for any one occurrence?

    <p>$500,000</p> Signup and view all the answers

    When must a Mortgage Administrator verify the identity of each lender/investor?

    <p>Before entering into an agreement</p> Signup and view all the answers

    What happens if errors and omissions insurance is cancelled or not renewed?

    <p>$1,000 penalty</p> Signup and view all the answers

    When must a Mortgage Administrator have a trust account?

    <p>Whenever it plans to accept trust funds</p> Signup and view all the answers

    What are deemed trust funds?

    <p>Funds held on behalf of a third party or not yet earned</p> Signup and view all the answers

    Do mortgage administrators have to file unaudited financial statements with OSFI?

    <p>Yes</p> Signup and view all the answers

    What is an example of a significant change in circumstances that could impact the performance of a mortgage?

    <p>Material delay in project development funded by the mortgage</p> Signup and view all the answers

    How can a potential forbearance impact the performance of a mortgage?

    <p>Payments are allowed to be deferred or capitalized</p> Signup and view all the answers

    What could lead to a substantial reduction in sales for a project funded by a mortgage?

    <p>Substantial reduction in forecasted sales</p> Signup and view all the answers

    How can a change in the ability of investors/lenders to redeem prior to the maturity date affect a mortgage investment?

    <p>Decreases the chances of redemption</p> Signup and view all the answers

    Which of the following is not considered a significant change in circumstances impacting a mortgage's performance?

    <p>Increase in property value of an unrelated property</p> Signup and view all the answers

    What must the Mortgage Administrator file with FSRA within 90 days of fiscal year end?

    <p>Audited financial statements prepared according to GAAP and audited by a licensed public accountant</p> Signup and view all the answers

    What penalty may result from late filings with FSRA?

    <p>$1,000 penalty</p> Signup and view all the answers

    Under what circumstances must a Mortgage Administrator immediately notify an investor/lender?

    <p>If there is a subsequent encumbrance on the mortgaged property or a borrower default under the mortgage</p> Signup and view all the answers

    What does subsection 18(3) of the Standards of Practice require the Mortgage Administrator to do?

    <p>Promptly notify each investor/lender about significant changes affecting the mortgage or borrower default</p> Signup and view all the answers

    Which of the following is NOT one of the significant changes that would require notification to an investor/lender?

    <p>$100 increase in property taxes</p> Signup and view all the answers

    Why are audited financial statements important for a Mortgage Administrator's filing?

    <p>To ensure compliance with FSRA regulations</p> Signup and view all the answers

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