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Questions and Answers
How long must all files be kept, according to the regulatory requirements?
How long must all files be kept, according to the regulatory requirements?
What is the primary purpose of a mortgage brokerage contract?
What is the primary purpose of a mortgage brokerage contract?
Which of the following is NOT a mandatory disclosure in the brokerage contract?
Which of the following is NOT a mandatory disclosure in the brokerage contract?
Why must the mortgage broker mention why the file was not sent to a lender?
Why must the mortgage broker mention why the file was not sent to a lender?
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What is the purpose of Chapter 6 of manual F-116?
What is the purpose of Chapter 6 of manual F-116?
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Study Notes
Role of the Mortgage Broker
- The mortgage broker advises borrowers on preparing, presenting, approving, and accepting mortgage loan applications, ensuring a smooth process and offering solutions that meet their needs.
Maintaining the Mortgage File
- The mortgage broker is responsible for keeping each client's file up to date, recording all documents concerning the client.
- A separate file is kept for each mortgage loan application, even for the same client.
- The file includes documents sent to the lender, written communications between the broker and borrower, product justification, loan application, and lender's response.
- The broker must validate documentation as often as possible with originals and ensure consistency with the borrower's information.
- The file must be accessible to the responsible manager of the mortgage brokerage firm.
- All files, funded or not, must be kept for five years from their closure.
Regulatory Requirements
- Chapter 6 of manual F-116 explains the regulatory requirements for maintaining mortgage files.
- The Authority regularly inspects and verifies the conformity of the files, providing warnings or sanctions in case of defects.
Brokerage Contract or Requirements Document
- Mortgage brokerage firms must comply with written consent and disclosure requirements provided by the Act respecting the distribution of financial products and services (LDPSF).
- The brokerage contract or written document aims to record client information, disclose broker obligations, and obtain client consent.
- The contract or document must include mandatory disclosures regarding compensation, commission sharing, number of lenders, and complaint handling policy.
- The client's consent is required for requesting personal credit information, sending a mortgage loan application to a lender, and transmitting personal information to a third party.
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Description
Learn about the responsibilities of a mortgage broker, including preparing and presenting mortgage loan applications and maintaining client files.
