Multiple Choice Flashcards by Megan Chew

This refers to the emotional state a buyer is in after completing what is typically a large purchase and who is no longer in an emotionally charged state.

A. Cooling off period
B. Purchaser’s remorse
C. Dissatisfied
D. Cognitive dissonance

D. Cognitive dissonance

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This is a call made to a potentially unfriendly new client or referral source who does not know the caller.

A. Cold call
B. Warm lead
C. Cold lead
D. Call script

A. Cold call

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This practice provides a consumer with an attractive offer to obtain him or her as a client but the offeror is unable to provide the product or service at the indicated price.

A. Bait and switch
B. Misrepresentation
C. Advertising
D. Fraud

A. Bait and switch

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The age demographic with the most Canadians in 2021 is:

A. 55-59
B. 60-64
C. 50-54
D. 25-29

D. 25-29

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According to Equifax, what credit score range has the most Canadians?

A. 600-649
B. 700-749
C. 750-799
D. 650-699

C. 750-799

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This is a plan for companies and people to accomplish the goals they set. It is designed to shape the company’s or individual’s identity and is typically based on a vision, goal, or ethics.

A. Vision statement
B. Mission statement
C. Business plan
D. Strategic plan

B. Mission statement

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This is something that the business or mortgage agent aspires to become. It should illustrate the core belief of the business or mortgage agent and effectively communicate that to the reader.

A. Vision statement
B. Business plan
C. Strategic plan
D. Mission statement

A. Vision statement

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How many clients do you need to start a database for marketing?

A. Five hundred
B. Ten
C. One hundred
D. One

D. One

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According to CMHC’s Residential Mortgage Industry Dashboard, Winter 2022, the size of the Canadian mortgage market, in terms of the value of all outstanding mortgages in the county, was estimated to be:

A. $2 trillion
B. $1.77 trillion
C. $177 trillion
D. $200 billion

B. $1.77 trillion

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The use of this type of marketing can have the effect of reducing the need of a consumer to touch or feel a product.

A. Business card
B. Continued contact
C. Advertising
D. Testimonials

D. Testimonials

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This term refers to the function of warehousing potential and existing client information in an electronic medium that allows the user to assemble or list these clients in groups that can be marketed to:

A. Database Marketing
B. Public Relation materials
C. Marketing
D. Bait and switch

A. Database Marketing

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This term refers to providing a consumer with an attractive offer to obtain him or her as a client but being unable to provide the product or service at the indicated price:

A. Database Marketing
B. Public Relation materials
C. Marketing
D. Bait and switch

D. Bait and switch

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This term refers to presenting products or services to potential customers in a fashion that positively promotes the product or service and makes customers eager to buy or use those products or services:

A. Bait and switch
B. Database Marketing
C. Testimonials
D. Marketing

D. Marketing

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This term refers to the self-regulatory body founded in 1957, which regulates the advertising industry and handles consumer complaints related to advertising:

A. Advertising Standards Canada (ASC)
B. The Canadian Code of Advertising Standards
C. PIPEDA
D. MBLAA

A. Advertising Standards Canada (ASC)

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Which of the following is not one of the three Government Agencies responsible for enforcement of CASL:

A. The Canadian Radio-television and Telecommunications Commission (CRTC)
B. The competition bureau
C. The office of the privacy comissioner
D. The CRA

D. The CRA

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This term refers to rules or standards stating that advertisements must not unfairly discredit, disparage or attack other products, services, advertisements or companies, or exaggerate the nature or importance of competitive differences created:

A. PIPEDA
B. Comparative Advertising
C. The Canadian Code of Advertising Standard
D. Advertising Standard Canada (ASC)

B. Comparative Advertising

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According to the Competition Bureau of Canada, which of the following is not on their list of Do’s in terms of advertising tips:

A. Do fully and clearly disclose all material in the advertisement
B. Do run a ‘sale’ for a long period or repeat it every week
C. Do, when conducting a contest, disclose all material details
D. Do avoid fine print disclaimers

B. Do run a ‘sale’ for a long period or repeat it every week

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This term refers to An endorsement in writing, verbally or electronically by a client:

A. Bait and switch
B. Database marketing
C. Testimonials
D. Public Relations Material

C. Testimonials

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This term refers to any advertisement by the broker or agent in connection with his or her status as a licensee or his or her dealing or trading in mortgages that is published, circulated, or broadcast by any means:

A. Bait and switch
B. Public relations material
C. Marketing
D. Database marketing

B. Public relations material

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This term refers to rules or standards created by the advertising industry in 1963 to promote the professional practice of advertising:

A. MBLAA
B. Advertising standard Canada (ASC)
C. The Canadian Code of Advertising Standards
D. PIPEDA

C. The Canadian Code of Advertising Standards

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The capitalization equation is:

A. R/V = I
B. I/R = V
C. IxV=R
D. V/R=I

B. I/R = V

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If a private lender is not sophisticated enough to complete a risk analysis for a potential private loan, who should they seek assistance from?

A. Default insurer
B. Lawyer
C. Mortgage Agent
D. Mortgage Administrator

C. Mortgage Agent

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How does a mortgage investment corporation obtain funds to lend to borrowers?

A. Syndicating it mortgage
B. Selling shares
C. Selling memberships
D. Taking deposits

B. Selling shares

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This type of ESA is required if there is a possible history of contamination on a property.

A. Phase 1
B. Phase 3
C. Phase 2
D. Environmental Site Assessment

C. Phase 2

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This is an investment in a pool of amortized residential mortgages insured through CMHC under the National Housing Act (NHA). A. Mortgage backed securities B. Private mortgage C. Mutual funds D. Mortgage investment corporation

A. Mortgage backed securities

The term ICI refers to: A. industry, commercial, investment B. industrial, condominium, investment C. industrial, commercial, institutional D. industrial, commercial, investment

D. industrial, commercial, investment

An auto dealership is an example of: A. Investment B. Industrial C. Commercial D. Recreational

C. Commercial

A non-qualified syndicated mortgage is overseen by: A. MBLAA B. Securities Act C. Ministry of Finance D. OSC

D. OSC

The rate of return typical on a private first mortgage is approximately: A. 7% to 9% B. 13% and higher C. 3% to 6% D. 6% to 10%

A. 7% to 9%

If a mortgage lender takes possession of a property under a power of sale or foreclosure, there may be liability under: A. Environment Canada B. Environmental Protection Act C. Environmental Protection Agency D. Municipal bylaws

B. Environmental Protection Act

This term refers to a policy of insurance that provides coverage for the title-related risks associated with real estate transactions A. Lender’s Mortgage Creditor Insurance B. Title Insurance C. Liability Insurance D. Property Insurance

B. Title Insurance

This term refers to insurance that provides protection from having to pay damages to people: A. Liability Insurance B. Errors and Omissions Insurance C. Property Insurance D. Mortgage Default Insurance

A. Liability Insurance

Out of the following options, what will title insurance cover? A. Title issues that arise after the policy date B. Fire retrofit compliance C. Municipal work orders and permits D. Environmental hazards

C. Municipal work orders and permits

This term refers to insurance obtained by the borrower from the lender, usually in the branch of the lender when they apply for the mortgage: A. Property Insurance B. Lender’s Mortgage Creditor Insurance C. Liability Insurance D. Title Insurance

B. Lender’s Mortgage Creditor Insurance

The act of adding mortgage arrears or other costs associated with a mortgage to the principal amount is known as: A. Reamortization B.Disbursements C. Capitalization D. Easement

C. Capitalization

This term refers to insurance designed to compensate the lender if the lender suffers a loss on an insured mortgage: A. Liability Insurance B. Errors and Omissions Insurance C. Mortgage Default Insurance D. Property Insurance

C. Mortgage Default Insurance

Which of the following is not a licensed Title insurance provider in Ontario? A. Chicago Title Insurance Company B. Little Title Guaranty Company C. FCT Insurance Company Ltd (First Canadian Title) D. Stewart Title Guaranty Company

B. Little Title Guaranty Company

A Title Insurance policy typically protects against all the following risks, EXCEPT: A. Fraud and forgery B. Defence of Title C. Hydro, tax, water and gas arrears D. Defects revealed in a 5-year old survey

D. Defects revealed in a 5-year old survey

The minimum amount of coverage required per year for an E and O policy is: A. It is not required B. $500,000 C. $1,000,000 D. It is up to the brokerage

C. $1,000,000

This term refers to a policy of insurance that provides coverage for the homeowner against covered risks: A. Property Insurance B. Liability Insurance C. Lender’s Mortgage Creditor Insurance D. Title Insurance

A. Property Insurance

This term refers to a document illustrating an offer by a lender to a borrower, including the terms and conditions of that offer: A. Origination Software B. Appraisal C. Commitment Letter D. Amortization Schedule

C. Commitment Letter

Which of the following is NOT a lender expectation of the Mortgage Agent? A. Provide borrowers who are suitable for the lender B. Recommend personal lenders C. Facilitate the transaction to its successful completion (funding) D. Provide appropriate protection against fraud

B. Recommend personal lenders

This term refers to the criteria used to assess an application by a lender. A. 5 C's of credit B. Commitment C. Underwriter D.Appraisal

A. 5 C's of credit

This term refers to a printout of all of the mortgage payments during the term: A. Origination Software B. Commitment Letter C. Appraisal D. Amortization schedule

D. Amortization schedule

Which of the following is NOT a step in a brokered transaction process? A. File creation and management B. Attracting a client C. Choosing a lender D. Offering personal loans

D. Offering personal loans

This term refers to the step in which the agent completes the borrower’s application and determines the needs of the borrower: A. Attracting a Client B. The Initial Consultation C. Appraisal D. Brokerage

B. The Initial Consultation

Which of the following is NOT a borrower expectation of the mortgage agent? A. Completely analyze the borrower’s needs B. Make appropriate recommendations based on the borrower’s needs C. Provide funding to the borrower D.Act in the borrower’s best interests

C. Provide funding to the borrower

In common law, this term refers to the relationship that exists when one person or party engages another to act for them. A. Tort B. Principal C. Agent D. Agency

C. Agent

This term refers to a report created by a certified appraiser (the individual conducting the appraisal) to determine a dollar value of the property and describe its condition: A. Origination Software B. Commitment Letter C. Appraisal D. Amortization Schedule

C. Appraisal

This term refers to a practicing professional who assesses financial goals with respect to real estate financing and acts as an intermediary with the appropriate lending source. A. Client B. Mortgage broker/agent C. Lender D. Borrower

B. Mortgage broker/agent

This term refers to the adherence to a core set of values, from which all decisions are based: a. Ethics b. Integrity c. Morality d. Honesty

b. Integrity

Providing borrowers who are suitable to the lender and providing protection against fraud is an example of: a. Broker Expectations b. Borrower Expectations c. Agent Expectations d. Lender Expectations

d. Lender Expectations

The Code of Conduct to which the industry adheres was created by: a. FSRA b. Ministry of Finance c. Government of Ontario d. MBRCC

d. MBRCC

Which of the following is NOT one of the steps in the decision-making model? a. Apply the core value: Integrity b. Apply the core value: Act in the best interest of the agent c. Apply the core value: Honesty d. Apply the core value: Act in the best interest of the client

b. Apply the core value: Act in the best interest of the agent

The last step in the decision making model is to: a. Choose the best solution b. Review the process c. Apply the decision d. Determine the facts

b. Review the process

Acting in the borrower’s best interests and analyzing borrower needs is an example of: a. Lender Expectations b. Borrower Expectations c. Agent Expectations d. Broker Expectations

b. Borrower Expectations

This term refers to fairness and straightforwardness of conduct; adherence to the facts: a. Ethics b. Integrity c. Honesty d. Morality

c. Honesty

This term is defined as the process of applying the core values of the mortgage industry to a practitioner’s daily conduct: a. Beliefs b. Morals c. Values d. Ethics

d. Ethics

This term refers to a belief which one cannot contravene: a. Ethics b. Integrity c. Honesty d. Core Value

d. Core Value

This term refers to a down payment or a small part of the purchase price made by a purchaser as evidence of good faith: a. Air Loans b. Promise to Pay c. Earnest Money d. Straw Borrower

c. Earnest Money

This term refers to the fraudulent transfer of title of a property: a. Value Fraud b. Mortgage Fraud c. Title Fraud d. Air Loans

c. Title Fraud

This term refers to a misstatement of the value of a property: a. Title Fraud b. Value Fraud c. Mortgage Fraud d. Air Loans

b. Value Fraud

This term refers to mortgage fraud that may be used to fund illegal transactions: a. Fraud for shelter b. Foreclosure fraud c. Fraud for profit d. Fraud for criminal activities

d. Fraud for criminal activities

This term refers to the defrauding of a homeowner using the pretense of assisting to stop a foreclosure or power of sale: a. Fraud for profit b. Foreclosure fraud c. Fraud for shelter d. Fraud for criminal activities

b. Foreclosure fraud

This term refers to fraud committed to obtain the proceeds of the mortgage without the intent to repay the loan: a. Fraud for profit b. Foreclosure fraud c. Fraud for shelter d. Fraud for criminal activities

a. Fraud for profit

This term refers to the deliberate omission of information, use of misstatements or misrepresentations to obtain, purchase, or fund a mortgage loan: a. Title Fraud b. Air Loans c. Value Fraud d. Mortgage Fraud

d. Mortgage Fraud

This term refers to fraud committed when an individual wishes to purchase a home in which to reside with no intent to abscond with mortgage funds or fraudulently sell the property by misstating or misrepresenting his or her status: a. Foreclosure fraud b. Fraud for profit c. Fraud for shelter d. Fraud for criminal activities

c. Fraud for shelter

This term refers to an individual who is paid to use his or her identity to obtain mortgage financing, or who is a victim of identity theft: a. Air Loans b. Identity Theft c. Straw Borrower d. Money Laundering

c. Straw Borrower

This is a document provided by the Courts that allows the lender to take possession of the borrower’s property: a. Statement of claim for debt and possession b. Power of Sale c. Notice of Sale d. Writ of possession

d. Writ of possession

This is a transfer by the borrower of ownership to the lender in exchange for releasing the borrower from any further liability. a. Judicial sale b. Quit claim c. Foreclosure d. Power of sale

b. Quit claim

This term refers to a period of time that the borrower has to either pay the arrears plus costs or pay the entire amount owing, plus costs during a power of sale: a. Waiting period b. Redemption period c. Foreclosure d. Notice of sale

b. Redemption period

This is a document that is used to inform the borrower of the lender’s intent to recover monies owing to it when the borrower has defaulted on his or her obligations under the mortgage contract: a. Power of Sale b. Writ of possession c. Notice of Sale d. Statement of claim for debt and possession

c. notice of sales

This is a document sent by the lender’s lawyer that requires the defaulting borrower to pay the lender the monies owed on the defaulted mortgage: a. Foreclosure b. Eviction notice c. Notice of sale d. Demand letter

d. Demand letter

In this process, the lender may commence an action for sale in which the court oversees the sale and the distribution of proceeds after the sale. There are several components, including: * Overseen by the Court * The lender must apply to the court for approval to sell the property, and for approval of the sale * The lender files a lawsuit against the borrower and other liable parties * Once ordered, the owner can no longer list the property for sale, and any listing agreement is cancelled * Upon sale, the property is transferred free and clear of debts, which are extinguished by the Court * Great deal of Court involvement throughout the process a. Foreclosure b. Power of sale c. Notice of sale d. Judicial sale

d. Judicial sale

How many days before a power of sale remedy can be commenced in Ontario? a. 20 days b. 10 days c. 25 days d. 15 days

d. 15 days

This term refers to the process of using the courts to take title to the mortgaged property, thereby extinguishing all rights that the borrower or any other party may have in the property: a. Notice of sale b. Foreclosure c. Demand letter d. Redemption period

b. Foreclosure

This process was developed by Ontario lenders as a faster remedy than the typical remedy of foreclosure: a. Power of Sale b. Power of Attorney c. Power Remedy d. Sale Remedy

a. Power of Sale

Once the Statement of Claim for Debt and Possession is served to the borrower under a power of sale, how long will he/she have to file a Statement of Defence? a. 20 days b. 25 days c. 10 days d. 15 days

a. 20 days

This is a document filed with the Courts outlining a lender’s claim against the borrower: a. Statement of claim for debt and possession b. Notice of Sale c. Writ of possession d. Power of Sale

a. Statement of claim for debt and possession

Once a borrower has been given a redemption notice under a power of sale, how long will he/she have to exercise their options? a. 45 days b. 25 days c. 30 days d. 35 days

d. 35 days

This is designed to inform the mortgage agent of the rate charged on a product, based on such factors as the LTV and the Beacon or credit score: a. Rate Hold b. Rate Drop c. Rate Sheets d. Product Sheets

c. Rate Sheets

This term refers to lenders that typically only offer mortgages through the brokerage channel: a. Prime Mortgage Lending b. Mortgage Investment Entities c. Private Lenders d. Mortgage Finance Companies

d. Mortgage Finance Companies

This term refers to individuals who have money to invest and have decided that mortgage financing offers a profitable rate of return: a. Sub-Prime Mortgage Lending b. Monoline Lenders c. Prime Mortgage Lending d. Mortgage Investment Entities

d. Mortgage Investment Entities

All of the following characteristics typically reflect an individual who may only qualify for a sub-prime mortgage, EXCEPT: a. Poor credit b. Requires low LTV financing c. Self employed d. Previous bankruptcy

b. Requires low LTV financing

This term refers to the practice of maintaining a rate for a specific period of time: a. Rate Hold b. Product Sheets c. Rate Drop d. Rate Sheets

a. Rate Hold

This is designed to inform the mortgage agent of the terms and conditions that must be met for approval, as well as the features of the mortgage being described: a. Rate Hold b. Product Sheets c. Rate Drop d. Rate Sheets

b. Product Sheets

This term applies to clients who are self-employed: a. BFS b. SFD c. BDM d. O/O

a. BFS

This term is defined as a mortgage market which provides the ability for borrowers who have been or who would be declined by prime lenders to obtain financing: a. Monoline Lenders b. Prime Mortgage Lending c. Sub-Prime Mortgage Lending d. Private Mortgage Lenders

c. Sub-Prime Mortgage Lending

This term is defined as lending to clients who have excellent credit, provable income, and stable employment: a. Private Mortgage Lenders b. Prime Mortgage Lending c. Monoline Lenders d. Sub-Prime Mortgage Lending

b. Prime Mortgage Lending

This term refers to the practice of decreasing a client’s mortgage rate after he or she has been approved but before the mortgage transaction has closed: a. Rate Drop b. Rate Hold c. Rate Sheets d. Product Sheets

a. Rate Drop