Homework Help is Here – Start Your Trial Now!
Business
Business Law
Simon is arranging a mortgage for his client, Adam, using his private investor. Susan. Simon feels that he can only adequately represent one party or the other, and in this transaction he is acting on behalf of Susan. Given this scenario which of the following statements is most correct?

Simon is arranging a mortgage for his client, Adam, using his private investor. Susan. Simon feels that he can only adequately represent one party or the other, and in this transaction he is acting on behalf of Susan. Given this scenario which of the following statements is most correct?

Question

Pls help ASAP on both

Simon is arranging a mortgage for his client, Adam, using his private investor, Susan. Simon feels that he can only adequately represent one party or the other, and in this transaction he is acting on behalf of Susan. Given this scenario which of the following statements is most correct? Select one: a. Simon must act on behalf of both the borrower and the investor b. Simon must disclose this to both the investor and the borrower c. Simon must disclose this to the borrower but not the investor d. Simon does not need to disclose this to either party
Transcribed Image Text:Simon is arranging a mortgage for his client, Adam, using his private investor, Susan. Simon feels that he can only adequately represent one party or the other, and in this transaction he is acting on behalf of Susan. Given this scenario which of the following statements is most correct? Select one: a. Simon must act on behalf of both the borrower and the investor b. Simon must disclose this to both the investor and the borrower c. Simon must disclose this to the borrower but not the investor d. Simon does not need to disclose this to either party
Oliver, a mortgage agent level 2, has a client, Erik, who would like to pay for his home renovations using a second mortgage, since his first mortgage is closed for another two years. Erik is insistent that he does not pay any lender fees, however he is fine with any interest rate up to 14%. Oliver's investor, Joe, who is interested in funding this mortgage, is insistent that he earn a 13% IRR, typically by charging a rate of 11% along with a lender's fee, but as long as he's able to earn at least 13% IRR, he is open to suggestions. Give this scenario which of the following options would satisfy both Erik and Joe? Select one: a. Charge a lender's fee that earns Joe an IRR of 13% while charging 11% as an interest rate to Erik b. Charge an interest rate of 13% with no lender fee c. There is no way to satisfy the needs of both Joe and Erik in this scenario d. Charge a brokerage fee and pay it to Joe so that he earns at least 13% while charging Erik 10% interest
Transcribed Image Text:Oliver, a mortgage agent level 2, has a client, Erik, who would like to pay for his home renovations using a second mortgage, since his first mortgage is closed for another two years. Erik is insistent that he does not pay any lender fees, however he is fine with any interest rate up to 14%. Oliver's investor, Joe, who is interested in funding this mortgage, is insistent that he earn a 13% IRR, typically by charging a rate of 11% along with a lender's fee, but as long as he's able to earn at least 13% IRR, he is open to suggestions. Give this scenario which of the following options would satisfy both Erik and Joe? Select one: a. Charge a lender's fee that earns Joe an IRR of 13% while charging 11% as an interest rate to Erik b. Charge an interest rate of 13% with no lender fee c. There is no way to satisfy the needs of both Joe and Erik in this scenario d. Charge a brokerage fee and pay it to Joe so that he earns at least 13% while charging Erik 10% interest
Expert Solution
steps

Step by step

Solved in 6 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer