Mortgage exam practice test 1 with complete solution
This governing body regulates Mortgage Broker, Agent and Administrator activity
in the province of Ontario.
a) Financial Services Regulatory Authority of Ontario
b) Financial Services Tribunal
c) Ontario Securities Commission
d) Ontario Financing Authority
a) Financial Services Regulatory Authority of Ontario
Which of the following would be governed federally under OSFI, not by the
provincial Regulator?
a) Mortgage Broker
b) Mortgage Agent
c) Mortgage Administrator
d) Mortgage Representative
d) Mortgage Representative
A Mortgage Broker/Agent must notify FSRA of changes to his/her mailing
address, e-mail address, telephone or fax number, and if he/she is no longer
authorized to act on behalf of a Mortgage Brokerage. Late notifications by
Mortgage Brokers/Agents may result in:
a) a $250 penalty.
b) a $10,000 penalty.
c) suspension of license.
d) none of the above
a) a $250 penalty.
How many brokerages can Mortgage Agents work under at one time under the
MBLAA,?
a) One
b) Two
c) Three
d) An unlimited number
a) One
If an Agent's license is refused, how long must the applicant wait before re-
applying to the Regulator for a license again?
a) 6 months
b) 12 months
c) 18 months
d) 24 months
b) 12 months
This Federal Act addresses how organizations should collect, use and disclose
personal information, and is broken out into ten privacy principles.
a) The Income Tax Act
b) The Real Estate Act
c) MBLAA
d) PIPEDA
d) PIPEDA
, According to the Federal Interest Act, mortgages can only compound interest:
a) weekly, not in advance.
b) weekly and monthly.
c) semi-annually or annually, in advance.
d) semi-annually or annually, not in advance.
d) semi-annually or annually, not in advance.
This concept holds that the borrower has the right, for a limited period of time, to
repay the loan and retain possession of a property even if default has taken
place, thereby acknowledging that the borrower is the owner of the property.
a) Dead pledge
b) Equity of redemption
c) Principal risk
d) Quantum Meruit
b) Equity of redemption
Which of the following is a funding source for mortgages?
a) Credit Unions/ Caisses Populaires
b) Trust Companies
c) Banks
d) All of the above
d) All of the above
. Which word pairing properly complete the sentence? Although mortgage default
insurance is paid for by , it protects from the risk of loss due to default.
a) the lawyer, the borrower
b) the lender, the borrower
c) the borrower, the lender
d) the broker, the lender
c) the borrower, the lender
Which of the following is a supply factor affecting real estate?
a) Builders
b) Immigration and migration
c) Household formation
d) Economics
a) Builders
This type of co-ownership allows for the tenant's share to automatically pass to
the remaining joint tenant(s) upon the tenant's death - also known as "rights of
survivor ship."
a) Life interest
b) Willed estate
c) Joint tenancy
d) Tenancy in common
c) Joint tenancy
Which encumbrance remains with the property regardless of changes in
ownership; in other words, "run with the land"?
a) Life interest
b) Leasehold
This governing body regulates Mortgage Broker, Agent and Administrator activity
in the province of Ontario.
a) Financial Services Regulatory Authority of Ontario
b) Financial Services Tribunal
c) Ontario Securities Commission
d) Ontario Financing Authority
a) Financial Services Regulatory Authority of Ontario
Which of the following would be governed federally under OSFI, not by the
provincial Regulator?
a) Mortgage Broker
b) Mortgage Agent
c) Mortgage Administrator
d) Mortgage Representative
d) Mortgage Representative
A Mortgage Broker/Agent must notify FSRA of changes to his/her mailing
address, e-mail address, telephone or fax number, and if he/she is no longer
authorized to act on behalf of a Mortgage Brokerage. Late notifications by
Mortgage Brokers/Agents may result in:
a) a $250 penalty.
b) a $10,000 penalty.
c) suspension of license.
d) none of the above
a) a $250 penalty.
How many brokerages can Mortgage Agents work under at one time under the
MBLAA,?
a) One
b) Two
c) Three
d) An unlimited number
a) One
If an Agent's license is refused, how long must the applicant wait before re-
applying to the Regulator for a license again?
a) 6 months
b) 12 months
c) 18 months
d) 24 months
b) 12 months
This Federal Act addresses how organizations should collect, use and disclose
personal information, and is broken out into ten privacy principles.
a) The Income Tax Act
b) The Real Estate Act
c) MBLAA
d) PIPEDA
d) PIPEDA
, According to the Federal Interest Act, mortgages can only compound interest:
a) weekly, not in advance.
b) weekly and monthly.
c) semi-annually or annually, in advance.
d) semi-annually or annually, not in advance.
d) semi-annually or annually, not in advance.
This concept holds that the borrower has the right, for a limited period of time, to
repay the loan and retain possession of a property even if default has taken
place, thereby acknowledging that the borrower is the owner of the property.
a) Dead pledge
b) Equity of redemption
c) Principal risk
d) Quantum Meruit
b) Equity of redemption
Which of the following is a funding source for mortgages?
a) Credit Unions/ Caisses Populaires
b) Trust Companies
c) Banks
d) All of the above
d) All of the above
. Which word pairing properly complete the sentence? Although mortgage default
insurance is paid for by , it protects from the risk of loss due to default.
a) the lawyer, the borrower
b) the lender, the borrower
c) the borrower, the lender
d) the broker, the lender
c) the borrower, the lender
Which of the following is a supply factor affecting real estate?
a) Builders
b) Immigration and migration
c) Household formation
d) Economics
a) Builders
This type of co-ownership allows for the tenant's share to automatically pass to
the remaining joint tenant(s) upon the tenant's death - also known as "rights of
survivor ship."
a) Life interest
b) Willed estate
c) Joint tenancy
d) Tenancy in common
c) Joint tenancy
Which encumbrance remains with the property regardless of changes in
ownership; in other words, "run with the land"?
a) Life interest
b) Leasehold
