In trying to find an appropriate investment for your investor. Ella, another brokerage has sent you a borrower's application. In the application the brokerage has stated that it will guarantee that if the borrower defaults, it will make the payments and collect from the borrower. Ella likes this option, however you must: Select one: a. Advise Ella to invest in this mortgage as this guarantee greatly reduces her risk b. Advise Ella that the brokerage is not legally allowed to guarantee payments c. Request that the brokerage create a formal contract guaranteeing the payments d. Request the brokerage's financial statements to ensure it can back the guarantee Last year Raymond, a mortgage agent level 2, arranged a private mortgage for a borrower using one of his private lenders. As that mortgage is now coming up for renewal and Raymond's borrower wishes to renew it, Raymond must begin preparing the appropriate disclosure documents. Given this scenario which of the following disclosure documents must Raymond provide his private lender to broker this renewal? Select one: a. A Form 1 and Form 1.2 b. A Form 2 and 2.1 c. A Form 2 d. Mortgage application
In trying to find an appropriate investment for your investor. Ella, another brokerage has sent you a borrower's application. In the application the brokerage has stated that it will guarantee that if the borrower defaults, it will make the payments and collect from the borrower. Ella likes this option, however you must: Select one: a. Advise Ella to invest in this mortgage as this guarantee greatly reduces her risk b. Advise Ella that the brokerage is not legally allowed to guarantee payments c. Request that the brokerage create a formal contract guaranteeing the payments d. Request the brokerage's financial statements to ensure it can back the guarantee Last year Raymond, a mortgage agent level 2, arranged a private mortgage for a borrower using one of his private lenders. As that mortgage is now coming up for renewal and Raymond's borrower wishes to renew it, Raymond must begin preparing the appropriate disclosure documents. Given this scenario which of the following disclosure documents must Raymond provide his private lender to broker this renewal? Select one: a. A Form 1 and Form 1.2 b. A Form 2 and 2.1 c. A Form 2 d. Mortgage application
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:In trying to find an appropriate investment for your investor. Ella, another
brokerage has sent you a borrower's application. In the application the brokerage
has stated that it will guarantee that if the borrower defaults, it will make the
payments and collect from the borrower. Ella likes this option, however you must:
Select one:
a. Advise Ella to invest in this mortgage as this guarantee greatly reduces her
risk
b. Advise Ella that the brokerage is not legally allowed to guarantee payments
c. Request that the brokerage create a formal contract guaranteeing the
payments
d. Request the brokerage's financial statements to ensure it can back the
guarantee
Transcribed Image Text:Last year Raymond, a mortgage agent level 2, arranged a private mortgage for a
borrower using one of his private lenders. As that mortgage is now coming up for
renewal and Raymond's borrower wishes to renew it, Raymond must begin
preparing the appropriate disclosure documents. Given this scenario which of the
following disclosure documents must Raymond provide his private lender to broker
this renewal?
Select one:
a. A Form 1 and Form 1.2
b. A Form 2 and 2.1
c. A Form 2
d. Mortgage application
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