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Mortgage Agent Licensing Practice Exam · Question

What is the consequence for an individual who engages in mortgage brokerage activity, including acting as a mortgage agent, without a valid FSRA license?

Engaging in activities that require a mortgage license without proper authorization is a serious offense under the MBLAA. Section 43 outlines penalties, which c

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Question: What is the consequence for an individual who engages in mortgage brokerage activity, including acting as a mortgage agent, without a valid FSRA license?

Answer options:

  • A formal written warning from a professional association.
  • Ineligibility to renew their license in the future. ✅ Significant fines and potential imprisonment under the MBLAA.
  • A mandatory administrative fee payable to FSRA.

Correct answer: Significant fines and potential imprisonment under the MBLAA.

Explanation: Engaging in activities that require a mortgage license without proper authorization is a serious offense under the MBLAA. Section 43 outlines penalties, which can include substantial fines and terms of imprisonment for contraventions of the Act.

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