Mortgage Agent Licensing Practice Exam · Question
When handling client funds, a mortgage broker is obligated to:
Under the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA), mortgage brokers are required to keep client funds in a designated trust account. T
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Question: When handling client funds, a mortgage broker is obligated to:
Answer options:
- Deposit all client funds into a general operating account for business expenses. ✅ Keep client funds in a separate trust account established for this specific purpose.
- Immediately pay out any client funds received directly to the lender.
- Invest client funds in low-risk securities to generate returns before payout.
Correct answer: Keep client funds in a separate trust account established for this specific purpose.
Explanation: Under the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA), mortgage brokers are required to keep client funds in a designated trust account. This protects client money from being commingled with brokerage operating funds.
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Question explanations
- 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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