Samantha is thinking about a recent conversation she had with a potential client who was referred to her by a real estate agent, and who wanted to use inflated income by way of a falsified job letter to get a mortgage. She is contemplating her future and what would happen if she decided to broker this mortgage, and what would happen if she decided not to. If she decides not to broker this mortgage, which of the following statements is most correct?
Samantha is thinking about a recent conversation she had with a potential client who was referred to her by a real estate agent, and who wanted to use inflated income by way of a falsified job letter to get a mortgage. She is contemplating her future and what would happen if she decided to broker this mortgage, and what would happen if she decided not to. If she decides not to broker this mortgage, which of the following statements is most correct?
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:Samantha is thinking about a recent conversation she had with a potential client
who was referred to her by a real estate agent, and who wanted to use inflated
income by way of a falsified job letter to get a mortgage. She is contemplating her
future and what would happen if she decided to broker this mortgage, and what
would happen if she decided not to. If she decides not to broker this mortgage,
which of the following statements is most correct?
Select one:
a. She will get less referral business from this agent
b. She will likely lose business as most mortgage agents will do this type of
mortgage
c. She will likely develop a good reputation, which is good for her business
d. She will get more referral business from this real estate agent
Transcribed Image Text:Brian, a mortgage broker. is charging his client the following fees for arranging a
private mortgage:
1. Brokerage fee - he is including in the cost of borrowing
2.
Mortgage Administration fee being charged to the lender - he is not including
in the cost of borrowing
3. Application fee payable by the borrower at the time the borrower signs the
commitment - he is not including in the cost of borrowing
4. Consultation fee being charged to the borrower - he is not including in the cost
of borrowing
Given this scenario, which of the following statements is most correct?
Select one:
a. Administration fees are included in the cost of borrowing
b. Consultation fees are not included in the cost of borrowing
c. 3 and 4 must be included in the COB
d. The excluded costs are correct
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