Prime Mortgage Administrators of Ontario Inc., a mortgage administration company, is reviewing its policies and procedures with regard to disclosure of potential conflicts of interest. Regarding this requirement, which of the following statements is most correct? The administrator must: Select one: a. Disclose any potential conflict of interest to each borrower, in the appropriate FSRA approved disclosure document b. Disclose in writing to each investor any conflict of interest the company may have in connection with the mortgage c. Disclose in writing or verbally, to each investor and borrower any conflict of interest the company may have in connection with the mortgage d. Disclose in writing, or verbally, to each investor any conflict of interest the company may have in connection with the mortgage Tearesse, a mortgage agent level 2, is processing an application for a borrower, Jim, who requires a private second mortgage to consolidate his debt. In the borrower's application, Jim has stated that his property is a two-story detached home valued at $350,000. To prove this statement, Jim has provided Tearesse with an appraisal that was completed within the last twelve months by a qualified CRA appraiser. Jim doesn't want to pay for a new appraisal since he's already paid for this one. Tearesse knows she can provide this appraisal to one of her private lenders, who will accept it based on Tearesse's recommendation. As part of her due diligence, Tearesse always does a drive by of the applicant's property. In this case, Tearesse was shocked to find a vacant lot where Jim's two-story house was supposed to be. Given this scenario, which of the following is most correct? Select one: a. Jim is likely trying to commit fraud for shelter b. Tearesse is likely at the wrong location c. Jim is trying to commit fraud using an air loan d. Tearesse should have a new appraisal done on the property
Prime Mortgage Administrators of Ontario Inc., a mortgage administration company, is reviewing its policies and procedures with regard to disclosure of potential conflicts of interest. Regarding this requirement, which of the following statements is most correct? The administrator must: Select one: a. Disclose any potential conflict of interest to each borrower, in the appropriate FSRA approved disclosure document b. Disclose in writing to each investor any conflict of interest the company may have in connection with the mortgage c. Disclose in writing or verbally, to each investor and borrower any conflict of interest the company may have in connection with the mortgage d. Disclose in writing, or verbally, to each investor any conflict of interest the company may have in connection with the mortgage Tearesse, a mortgage agent level 2, is processing an application for a borrower, Jim, who requires a private second mortgage to consolidate his debt. In the borrower's application, Jim has stated that his property is a two-story detached home valued at $350,000. To prove this statement, Jim has provided Tearesse with an appraisal that was completed within the last twelve months by a qualified CRA appraiser. Jim doesn't want to pay for a new appraisal since he's already paid for this one. Tearesse knows she can provide this appraisal to one of her private lenders, who will accept it based on Tearesse's recommendation. As part of her due diligence, Tearesse always does a drive by of the applicant's property. In this case, Tearesse was shocked to find a vacant lot where Jim's two-story house was supposed to be. Given this scenario, which of the following is most correct? Select one: a. Jim is likely trying to commit fraud for shelter b. Tearesse is likely at the wrong location c. Jim is trying to commit fraud using an air loan d. Tearesse should have a new appraisal done on the property
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Problem 1CE
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Transcribed Image Text:Prime Mortgage Administrators of Ontario Inc., a mortgage administration
company, is reviewing its policies and procedures with regard to disclosure of
potential conflicts of interest. Regarding this requirement, which of the following
statements is most correct? The administrator must:
Select one:
a. Disclose any potential conflict of interest to each borrower, in the
appropriate FSRA approved disclosure document
b. Disclose in writing to each investor any conflict of interest the company
may have in connection with the mortgage
c. Disclose in writing or verbally, to each investor and borrower any conflict of
interest the company may have in connection with the mortgage
d. Disclose in writing, or verbally, to each investor any conflict of interest the
company may have in connection with the mortgage
Transcribed Image Text:Tearesse, a mortgage agent level 2, is processing an application for a borrower, Jim,
who requires a private second mortgage to consolidate his debt. In the borrower's
application, Jim has stated that his property is a two-story detached home valued at
$350,000. To prove this statement, Jim has provided Tearesse with an appraisal
that was completed within the last twelve months by a qualified CRA appraiser. Jim
doesn't want to pay for a new appraisal since he's already paid for this one.
Tearesse knows she can provide this appraisal to one of her private lenders, who
will accept it based on Tearesse's recommendation. As part of her due diligence,
Tearesse always does a drive by of the applicant's property. In this case, Tearesse
was shocked to find a vacant lot where Jim's two-story house was supposed to be.
Given this scenario, which of the following is most correct?
Select one:
a. Jim is likely trying to commit fraud for shelter
b. Tearesse is likely at the wrong location
c. Jim is trying to commit fraud using an air loan
d. Tearesse should have a new appraisal done on the property
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