Mortgage Agent Licensing Practice Exam · Question
A mortgage agent is reviewing an appraisal report for a property in Toronto. The report details recent renovations that significantly boost the property's value, but the agent's prior drive-by observation showed no signs of these extensive renovations. The comparable sales used also seem to be from more desirable neighbourhoods. This situation strongly suggests a potential instance of what type of fraud?
Discrepancies between physical observation and appraisal details, along with the use of unsuitably high comparable sales, are key indicators of appraisal fraud,
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Question: A mortgage agent is reviewing an appraisal report for a property in Toronto. The report details recent renovations that significantly boost the property's value, but the agent's prior drive-by observation showed no signs of these extensive renovations. The comparable sales used also seem to be from more desirable neighbourhoods. This situation strongly suggests a potential instance of what type of fraud?
Answer options: ✅ Appraisal Fraud
- Identity Fraud
- Straw Buyer Fraud
- Title Fraud
Correct answer: Appraisal Fraud
Explanation: Discrepancies between physical observation and appraisal details, along with the use of unsuitably high comparable sales, are key indicators of appraisal fraud, where the property's value is inflated to secure a larger mortgage.
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- Which of the following is NOT a primary provider of mortgage default insurance in Canada?
- When must a mortgage agent provide the borrower with certain disclosures regarding the proposed mortgage, part
- Michael and Jennifer are applying for a mortgage to purchase a home in Calgary for $700,000. Their combined gr
- Which of the following scenarios would typically lead to a higher mortgage interest rate for a borrower?
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