Jackson is brokering a mortgage for his borrower, Julia, using another mortgage broker's private investor, Donna. Jackson feels that he can only adequately represent Julia. Given this scenario which of the following statements is most correct? Select one: a. Jackson must disclose this to the borrower but not the investor b. Jackson does not need to disclose this to either party c. Jackson must act on behalf of both the borrower and the investor d. Jackson must disclose this to both the investor and the borrower John is a mortgage broker who is trying to arrange financing for his borrower, Mary, to consolidate her debts. Mary has an institutional first mortgage that is open. She has sufficient equity and income to qualify to refinance her first mortgage, but because of some bruised credit her bank is not interested in doing so at this time, but will do so once her credit improves. John has determined that a private second mortgage is in Mary's best interests. Mary will need about ten months after paying off her debts to rehabilitate her credit to be able to rrefinance with her bank, meaning she will likely not need to renew with the private lender at the end of the year. One of John's private investors, Camille, only wishes to invest in mortgages with a one-year term with a prepayment penalty. She is willing to accept early prepayment, but she never renews a mortgage. John feels that Camille may be a good candidate for this mortgage because: Select one: a. Mary should not need to renew the private mortgage and is therefore suitable for Camille b. John should not consider Camille as an investor for this mortgage c. Mary has good income and will therefore make the payments to Camille d. Mary has sufficient equity therefore is a good risk for Camille
Jackson is brokering a mortgage for his borrower, Julia, using another mortgage broker's private investor, Donna. Jackson feels that he can only adequately represent Julia. Given this scenario which of the following statements is most correct? Select one: a. Jackson must disclose this to the borrower but not the investor b. Jackson does not need to disclose this to either party c. Jackson must act on behalf of both the borrower and the investor d. Jackson must disclose this to both the investor and the borrower John is a mortgage broker who is trying to arrange financing for his borrower, Mary, to consolidate her debts. Mary has an institutional first mortgage that is open. She has sufficient equity and income to qualify to refinance her first mortgage, but because of some bruised credit her bank is not interested in doing so at this time, but will do so once her credit improves. John has determined that a private second mortgage is in Mary's best interests. Mary will need about ten months after paying off her debts to rehabilitate her credit to be able to rrefinance with her bank, meaning she will likely not need to renew with the private lender at the end of the year. One of John's private investors, Camille, only wishes to invest in mortgages with a one-year term with a prepayment penalty. She is willing to accept early prepayment, but she never renews a mortgage. John feels that Camille may be a good candidate for this mortgage because: Select one: a. Mary should not need to renew the private mortgage and is therefore suitable for Camille b. John should not consider Camille as an investor for this mortgage c. Mary has good income and will therefore make the payments to Camille d. Mary has sufficient equity therefore is a good risk for Camille
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Transcribed Image Text:Jackson is brokering a mortgage for his borrower, Julia, using another mortgage
broker's private investor, Donna. Jackson feels that he can only adequately
represent Julia. Given this scenario which of the following statements is most
correct?
Select one:
a. Jackson must disclose this to the borrower but not the investor
b. Jackson does not need to disclose this to either party
c. Jackson must act on behalf of both the borrower and the investor
d. Jackson must disclose this to both the investor and the borrower
Transcribed Image Text:John is a mortgage broker who is trying to arrange financing for his borrower, Mary,
to consolidate her debts. Mary has an institutional first mortgage that is open. She
has sufficient equity and income to qualify to refinance her first mortgage, but
because of some bruised credit her bank is not interested in doing so at this time,
but will do so once her credit improves. John has determined that a private second
mortgage is in Mary's best interests. Mary will need about ten months after paying
off her debts to rehabilitate her credit to be able to rrefinance with her bank,
meaning she will likely not need to renew with the private lender at the end of the
year. One of John's private investors, Camille, only wishes to invest in mortgages
with a one-year term with a prepayment penalty. She is willing to accept early
prepayment, but she never renews a mortgage. John feels that Camille may be a
good candidate for this mortgage because:
Select one:
a. Mary should not need to renew the private mortgage and is therefore
suitable for Camille
b. John should not consider Camille as an investor for this mortgage
c. Mary has good income and will therefore make the payments to Camille
d. Mary has sufficient equity therefore is a good risk for Camille
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