Mortgage Administration Role Quiz

Play an AI-generated podcast conversation about this lesson

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?

Errors and omissions insurance (A) Signup and view all the answers

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

$1,000 penalty (A) Signup and view all the answers

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

Errors and Omissions (A) Signup and view all the answers

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

$500,000 (A) Signup and view all the answers

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

Before entering into an agreement (D) Signup and view all the answers

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

$1,000 penalty (A) Signup and view all the answers

When must a Mortgage Administrator have a trust account?

Whenever it plans to accept trust funds (D) Signup and view all the answers

What are deemed trust funds?

Funds held on behalf of a third party or not yet earned (C) Signup and view all the answers

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

Yes (C) Signup and view all the answers

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 (A) Signup and view all the answers

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

Payments are allowed to be deferred or capitalized (C) Signup and view all the answers

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

Substantial reduction in forecasted sales (C) 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?

Decreases the chances of redemption (D) Signup and view all the answers

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 (B) Signup and view all the answers

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 (D) Signup and view all the answers

What penalty may result from late filings with FSRA?

$1,000 penalty (B) Signup and view all the answers

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 (D) Signup and view all the answers

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 (B) 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?

$100 increase in property taxes (B) Signup and view all the answers

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

To ensure compliance with FSRA regulations (C) Signup and view all the answers