Chapter 5 Flashcards
Which of the following is NOT a condition that must be met in order to become a mortgage broker?
Select one:
a. Having a mailing address in Ontario
b. Be authorized by a brokerage to deal or trade on its behalf
c. Be at least 19 years old
d. Be a resident of Canada
Correct Answer: Be at least 19 years old
Rationale: Being 19 years old is not accurate: You only need to be 18 years old to become a mortgage broker,
Relevant section(s) of the textbook: 5.5 The Mortgage Broker License
The correct answer is: Be at least 19 years old
What is the maximum administrative penalty the FSRA can impose on a Brokerage or Administrator?
Select one:
a. $50,000
b. $100,000
c. $200,000
d. $500,000
Correct Answer: $500,000
Rationale: Section 41 of the MBLAA empowers FSRA to impose administrative penalties to promote compliance with the MBLAA: Brokerage or Administrator, up to a maximum of $500,000
Relevant section(s) of the textbook: 5.10 FSRA’s Monitoring and Enforcement
The correct answer is: $500,000
When it comes to licensing, which of the following is NOT something that FSRA is empowered to do?
Select one:
a. Issue or refuse to issue a license
b. Impose or amend conditions on a license
c. Create a new license type
d. Refuse to renew a license
Correct Answer: Create a new license type
Rationale: Create a new license type is not something FSRA in empowered to do, whereas all the other options are accurate.
Relevant section(s) of the textbook: 5.2 Licensure
The correct answer is: Create a new license type
What is the maximum administrative penalty the FSRA can impose on Anyone not Licensed?
Correct Answer: $500,000
Rationale: Section 41 of the MBLAA empowers FSRA to impose administrative penalties to promote compliance with the MBLAA: Anyone else not licensed, up to a maximum of $500,000
Relevant section(s) of the textbook: 5.10 FSRA’s Monitoring and Enforcement
The correct answer is: $500,000
This is a forum for Canadian mortgage broker regulators to collaborate and promote regulatory consistency to serve the public interest.
Select one:
a. FSRA
b. FINTRAC
c. Federal government
d. MBRCC
Correct Answer: MBRCC
Rationale: The MBRCC (Mortgage Broker Regulators’ Council of Canada) is a forum for Canadian mortgage broker regulators to collaborate and promote regulatory consistency to serve the public interest. Their vision is to foster effective mortgage broker regulation that balances consumer protection and an open and fair marketplace. Their stated mission is to work cooperatively to develop solutions to mortgage regulatory issues.
Relevant section(s) of the textbook: 5.11 Mortgage Broker Regulators’ Council of Canada
The correct answer is: MBRCC
In regards to Record Keeping, which of the following is NOT something that the brokerage must do?
Select one:
a. Maintain a mailing address in Ontario
b. Ensure that only current versions of approved forms are being used
c. Maintain a website
d. Maintain an email address
Correct Answer: Maintain a website
Rationale: Maintain a website is not something the brokerage must do, whereas all the other options are accurate.
Relevant section(s) of the textbook: 5.3 The Mortgage Brokerage License
The correct answer is: Maintain a website
The MBLAA regulates all of the following activities, EXCEPT:
Select one:
a. Dealing in mortgages in Ontario
b. Discharging mortgages in Ontario
c. Trading in mortgages in Ontario
d. Carrying on business as a lender in Ontario
Correct Answer: Discharging mortgages in Ontario
Rationale: Revoking Mortgages in Ontario is not regulated by the MBLAA, whereas all the other options are accurate.
Relevant section(s) of the textbook: 5.1 Activities requiring a License
The correct answer is: Discharging mortgages in Ontario
What is the maximum administrative penalty the FSRA can impose on a Broker or Agent?
Correct Answer: $100,000
Rationale: Section 41 of the MBLAA empowers FSRA to impose administrative penalties to promote compliance with the MBLAA: Broker or agent, up to a maximum of $100,000
Relevant section(s) of the textbook: 5.10 FSRA’s Monitoring and Enforcement
The correct answer is: $100,000
Which of the following is NOT a license issued by FSRA?
Select one:
a. Mortgage broker’s license
b. Brokerage license
c. Private lending license
d. Mortgage agent’s license
Correct Answer: Private lending license
Rationale: A Private lending license does not exist and is therefore not issued by the FSRA, whereas all the other options are accurate.
Relevant section(s) of the textbook: 5.2 Licensure
The correct answer is: Private lending license
Which of the following is NOT a step in obtaining a new mortgage agent license?
Select one:
a. Pass REMIC’s FSRA approved mortgage agent course for licensing
b. Get hired by a FSRA licensed mortgage brokerage
c. Have the mortgage brokerage apply to FSRA for your license
d. Apply to FSRA for your license
Correct Answer: Apply to FSRA for your license
Rationale: Apply to FSRA for your license is not a required step. The mortgage brokerage will apply to FSRA for your license. This step must be completed by the mortgage brokerage.
Relevant section(s) of the textbook: 5.6 The Mortgage Agent License
The correct answer is: Apply to FSRA for your license
