Chapter 23 Flashcards
Which of the following is NOT one of the steps in the decision-making model?
Select one:
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
Correct Answer: Apply the core value: Act in the best interest of the agent
Rationale: Apply the core value: Act in the best interest of the agent is not one of the core beliefs of the mortgage industry, whereas the other options are relevant.
Relevant section(s) of the textbook: 23.3 The Decision-Making Model
The correct answer is: Apply the core value: Act in the best interest of the agent
This term refers to a belief which one cannot contravene:
Select one:
a. Integrity
b. Core Value
c. Ethics
d. Honesty
Correct Answer: Core Value
Rationale: A belief which one cannot contravene. In other words, if it is truly a core value you cannot go against it, or do anything that contravenes that belief.
Relevant section(s) of the textbook: 23.2 The Core Values and Beliefs of the Mortgage Industry
The correct answer is: Core Value
The Code of Conduct to which the industry adheres was created by:
Select one:
a. FSRA
b. Government of Ontario
c. Ministry of Finance
d. MBRCC
Correct Answer: MBRCC
Rationale: The MBRCC is a forum for Canadian mortgage broker regulators to collaborate and promote regulatory consistency to serve the public interest. The MBRCC developed this plain-language Code of Conduct (Code) to promote high standards of conduct to protect consumers of mortgage brokering services.
Relevant section(s) of the textbook: 23.6 MBRCC Code of Conduct
The correct answer is: MBRCC
This term refers to the adherence to a core set of values, from which all decisions are based:
Select one:
a. Morality
b. Honesty
c. Ethics
d. Integrity
Correct Answer: Integrity
Rationale: Merriam-Webster’s dictionary defines honesty as: “fairness and straightforwardness of conduct; adherence to the facts.” The adherence to a core set of values, from which all decisions are based. If one has integrity, he or she adheres to their core values
Relevant section(s) of the textbook: 23.2 The Core Values and Beliefs of the Mortgage Industry
The correct answer is: Integrity
The last step in the decision making model is to:
Select one:
a. Determine the facts
b. Review the process
c. Choose the best solution
d. Apply the decision
Correct Answer: Review the process
Rationale: Once you’ve reached a decision it is important to review the process step by step to ensure that your tests were applied objectively and without bias. It may also be helpful to discuss the process with someone you trust, as long as the discussion does not disclose confidential information, or information that might damage another’s reputation.
Relevant section(s) of the textbook: 23.3 The Decision Making Process
The correct answer is: Review the process
Which of the following is NOT one of the core beliefs of the mortgage industry?
Select one:
a. Honesty
b. Act in the best interest of the client
c. Act in the best interest of the agent
d. Integrity
Correct Answer: Act in the best interest of the agent
Rationale: Act in the best interest of the agent is not one of the core beliefs of the mortgage industry, whereas the other options are relevant.
Relevant section(s) of the textbook: 23.2 The Core Values and Beliefs of the Mortgage Industry
The correct answer is: Act in the best interest of the agent
This term is defined as the process of applying the core values of the mortgage industry to a practitioner’s daily conduct:
Select one:
a. Values
b. Ethics
c. Beliefs
d. Morals
Correct Answer: Ethics
Rationale: Ethics can be defined, for our purposes, as “the process of applying the core values of the mortgage industry to a practitioner’s daily conduct.”
Relevant section(s) of the textbook: 23.1 What is Ethics?
The correct answer is: Ethics
This term refers to fairness and straightforwardness of conduct; adherence to the facts:
Select one:
a. Morality
b. Honesty
c. Integrity
d. Ethics
Correct Answer: Honesty
Rationale: Merriam-Webster’s dictionary defines honesty as: “fairness and straightforwardness of conduct; adherence to the facts.”
Relevant section(s) of the textbook: 23.2 The Core Values and Beliefs of the Mortgage Industry
The correct answer is: Honesty
Providing borrowers who are suitable to the lender and providing protection against fraud is an example of:
Select one:
a. Lender Expectations
b. Borrower Expectations
c. Broker Expectations
d. Agent Expectations
Correct Answer: Lender Expectations
Rationale: These expectations can be summarized as:
- Provide borrowers who are suitable for the lender
- Provide appropriate protection against fraud
- Facilitate the transaction to its successful completion (funding)
Relevant section(s) of the textbook: 23.2 The Core Values and Beliefs of the Mortgage Industry
The correct answer is: Lender Expectations
Acting in the borrower’s best interests and analyzing borrower needs is an example of:
Select one:
a. Lender Expectations
b. Agent Expectations
c. Broker Expectations
d. Borrower Expectations
Correct Answer: Borrower Expectations
Rationale: These expectations can be summarized as:
- Act in the borrower’s best interests
- Completely analyze the borrower’s needs
- Make appropriate recommendations based on the borrower’s needs
- Facilitate the transaction to its successful completion (funding)
Relevant section(s) of the textbook: 23.2 The Core Values and Beliefs of the Mortgage Industry
The correct answer is: Borrower Expectations
