23 Questions
What is one of the duties of a mortgage administrator?
Enforcing payment through the power of sale process
How much financial guarantee must a mortgage administrator maintain to get licensed?
$25,000
Can a mortgage administrator be a corporation?
Yes, corporations, partnerships, and sole proprietorships are allowed
What type of insurance must a mortgage administrator maintain?
Errors and omissions insurance
What is the penalty for failing to notify FSRA about the cancellation of the financial guarantee?
$1,000 penalty
What does E and O stand for in the context of mortgage administration?
Errors and Omissions
What is the minimum coverage required by insurance for any one occurrence?
$500,000
When must a Mortgage Administrator verify the identity of each lender/investor?
Before entering into an agreement
What happens if errors and omissions insurance is cancelled or not renewed?
$1,000 penalty
When must a Mortgage Administrator have a trust account?
Whenever it plans to accept trust funds
What are deemed trust funds?
Funds held on behalf of a third party or not yet earned
Do mortgage administrators have to file unaudited financial statements with OSFI?
Yes
What is an example of a significant change in circumstances that could impact the performance of a mortgage?
Material delay in project development funded by the mortgage
How can a potential forbearance impact the performance of a mortgage?
Payments are allowed to be deferred or capitalized
What could lead to a substantial reduction in sales for a project funded by a mortgage?
Substantial reduction in forecasted sales
How can a change in the ability of investors/lenders to redeem prior to the maturity date affect a mortgage investment?
Decreases the chances of redemption
Which of the following is not considered a significant change in circumstances impacting a mortgage's performance?
Increase in property value of an unrelated property
What must the Mortgage Administrator file with FSRA within 90 days of fiscal year end?
Audited financial statements prepared according to GAAP and audited by a licensed public accountant
What penalty may result from late filings with FSRA?
$1,000 penalty
Under what circumstances must a Mortgage Administrator immediately notify an investor/lender?
If there is a subsequent encumbrance on the mortgaged property or a borrower default under the mortgage
What does subsection 18(3) of the Standards of Practice require the Mortgage Administrator to do?
Promptly notify each investor/lender about significant changes affecting the mortgage or borrower default
Which of the following is NOT one of the significant changes that would require notification to an investor/lender?
$100 increase in property taxes
Why are audited financial statements important for a Mortgage Administrator's filing?
To ensure compliance with FSRA regulations
Test your knowledge on the role of a mortgage administrator including tasks like collecting payments, managing defaults, and enforcing payments. Learn about the responsibilities involved in mortgage administration.
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