Ontario Mortgage Brokering Regulations

<p>Determining the market value of the property (B)</p> Signup and view all the answers

<p>The removal of a cap on interest rates. (B)</p> Signup and view all the answers

<p>To protect lenders against losses from borrower default. (D)</p> Signup and view all the answers

<p>To protect against losses related to title defects. (D)</p> Signup and view all the answers

<p>To assess a borrower's ability to handle increased interest rates. (B)</p> Signup and view all the answers

<p>To determine the market value of a property. (B)</p> Signup and view all the answers

<p>To protect the borrower by paying off the mortgage upon a specific event like death. (B)</p> Signup and view all the answers

<p>A cap on interest rates they could charge. (A)</p> Signup and view all the answers

<p>Licensed Real Estate Broker (D)</p> Signup and view all the answers

<p>Business Development Manager (C)</p> Signup and view all the answers

<p>The rule that banks are allowed to lend on residential mortgages. (B)</p> Signup and view all the answers

<p>Banks (C)</p> Signup and view all the answers

<p>Payer controls the worker's duties, whether that control is used or not. (B)</p> Signup and view all the answers

<p>Sets their own working hours. (C)</p> Signup and view all the answers

<p>Access to rate specials from various lenders. (B)</p> Signup and view all the answers

<p>Agents receive expert advice from specialists (A)</p> Signup and view all the answers

<p>A mortgage agent can place clients with various lenders. (B)</p> Signup and view all the answers

<p>To be the chief compliance officer of the brokerage. (C)</p> Signup and view all the answers

<p>The license will be suspended until they are hired by another mortgage brokerage. (D)</p> Signup and view all the answers

<p>A company constructed to lend money on real estate. (B)</p> Signup and view all the answers

<p>They typically provide a higher rate of return than first mortgages. (B)</p> Signup and view all the answers

<p>The individual or individuals who are taking the mortgage loan. (C)</p> Signup and view all the answers

<p>When the borrower is acting under a Power of Attorney. (C)</p> Signup and view all the answers

<p>Generating business from brokerages for the lender. (B)</p> Signup and view all the answers

<p>The Lender (C)</p> Signup and view all the answers

<p>Pension (D)</p> Signup and view all the answers

<p>Private lenders are more often investors in 2nd mortgages due to their higher rate of return. (A)</p> Signup and view all the answers

<p>Financial Services Regulatory Authority of Ontario (FSRA) (C)</p> Signup and view all the answers

<p>The Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA) (D)</p> Signup and view all the answers

<p>A broker can act as the chief compliance officer and supervise other agents. (B)</p> Signup and view all the answers

<p>Brokering loans secured by real property and providing mortgage advice. (C)</p> Signup and view all the answers

<p>A commission is paid by a lender; a brokerage fee is charged to the borrower. (C)</p> Signup and view all the answers

<p>The classification hinges on the specifics outlined within their contractual agreement. (C)</p> Signup and view all the answers

<p>Compensation based on mortgage volume is permissible provided that the agent sells various mortgage products from different lenders; so they can maintain their independence. (D)</p> Signup and view all the answers

<p>The agent tells the client to take out the biggest mortgage possible to improve their cashflow. (C)</p> Signup and view all the answers

The Financial Services Regulatory Authority of Ontario (FSRA) oversees mortgage brokering.

The Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA) governs mortgage activities in Ontario.

A mortgage broker can supervise mortgage agents and act as the chief compliance officer.

They broker mortgages, refinance existing ones, arrange investor mortgages, and provide mortgage advice.

Commission is paid by lenders to the brokerage; brokerage fee is charged to the borrower for private mortgages.

A mortgage agent typically operates as an independent contractor rather than an employee, depending on their contract.

A principal broker supervises mortgage agents and ensures compliance with regulations.

The process of replacing an existing mortgage with a new one, usually with better terms.

An individual who brokers transactions between sellers and buyers in real estate. Employed by a licensed broker and a member of a local board.

A professional who determines the market value of a property for financing. Licensing not always required in Ontario.

A qualified individual who inspects a home's condition and advises the buyer on issues that may affect market value.

An insurer providing default insurance policies, especially for high-ratio mortgages, helping lenders mitigate risk.

A licensed professional who creates legal maps detailing boundary, building, and important features of land parcels.

A lawyer specializing in real estate transactions, handling agreements and closing deals for buyers or sellers.

A policy insuring mortgage borrowers to cover loan repayment in the event of death or specified conditions.

An insurer that provides policies covering real title issues, compensating losses from undisclosed problems.

A person/entity servicing mortgage loans, processing payments and managing communications for lenders.

A lending market for borrowers who don’t qualify for standard mortgage products, often with higher risk.

A test ensuring borrowers can handle rising interest rates, qualifying at higher rates than offered.

Institutional lenders, primarily banks, which dominate the mortgage market in Canada.

Removed the 6% interest rate cap, allowing banks to become significant mortgage lenders in Ontario.

Refer to the specific criteria outlined by institutions like Humber College for real estate salesperson licensing.

A worker classified as an employee works exclusively for the payer, who provides tools and controls duties.

In employee classification, the payer provides tools necessary for the job.

In employee classification, the payer has control over the worker's tasks, whether actively used or not.

For employees, the payer sets specific working hours.

Employees typically receive benefits like pension plans and vacation pay.

Employees are paid on a salary or hourly wage, while independent contractors are paid by job.

The payer often pays expenses for employees, but independent contractors cover their own costs.

A licensed entity where mortgage agents operate, needing one authorized brokerage.

The chief compliance officer of a mortgage brokerage, responsible for regulatory activities.

The primary source of mortgage funding, including banks and credit unions.

Individuals investing in mortgages, often seeking higher returns, typically through second mortgages.

The borrower in a mortgage, pledging property as security for the loan.

A representative from a financial institution, working only with their lender’s products.

A lender employee who generates business from mortgage brokerages.