Sarah, a mortgage agent, is helping the Rossi family, first-time homebuyers in Vancouver, secure a mortgage for their new condo priced at $750,000. She has received a mortgage commitment from a lender that includes a lender-paid commission to her. Which of the following is Sarah legally required to do regarding her compensation?

Question: Sarah, a mortgage agent, is helping the Rossi family, first-time homebuyers in Vancouver, secure a mortgage for their new condo priced at $750,000. She has received a mortgage commitment from a lender that includes a lender-paid commission to her. Which of the following is Sarah legally required to do regarding her compensation?

Answer options: ✅ Disclose the nature and amount (or basis for calculating) her compensation from the lender to the Rossi family in writing.

• Advise the Rossi family that they should independently verify the terms of the compensation directly with the lender.
• Only disclose her compensation if the Rossi family specifically asks about how she is paid.
• Negotiate a lower interest rate for the Rossi family in exchange for waiving her right to full disclosure of her compensation.

Correct answer: Disclose the nature and amount (or basis for calculating) her compensation from the lender to the Rossi family in writing.

Explanation: Mortgage agents are required to disclose their compensation from lenders to clients in writing, as per provincial mortgage broker regulations (e.g., Ontario's MBLAA or B.C.'s Mortgage Brokers Act).