Mortgage Broker Licensing Practice Exam · Question
A mortgage brokerage firm, 'Secure Home Mortgages', receives a client's deposit of $5,000 as a commitment fee for a future mortgage. Into which type of account should this money be deposited?
Client funds, such as commitment fees, must be held in a designated trust account, separate from the brokerage's operating funds, to safeguard these monies and
Start free practice for Mortgage Broker Licensing Practice Exam
302 questions · no signup required · 40 free questions per day
Question: A mortgage brokerage firm, 'Secure Home Mortgages', receives a client's deposit of $5,000 as a commitment fee for a future mortgage. Into which type of account should this money be deposited?
Answer options: ✅ A designated trust account separate from the brokerage's operating funds.
- The brokerage's general operating account, provided it is tracked internally.
- A client-specific savings account opened for that particular client.
- The personal bank account of the principal broker, to be transferred later.
Correct answer: A designated trust account separate from the brokerage's operating funds.
Explanation: Client funds, such as commitment fees, must be held in a designated trust account, separate from the brokerage's operating funds, to safeguard these monies and prevent commingling, as per provincial regulations concerning trust accounts (e.g., O. Reg. 187/08, s. 12 or BCFSA Rules).
Start free practice for Mortgage Broker Licensing Practice Exam
302 questions · no signup required · 40 free questions per day
More about Mortgage Broker Licensing Practice Exam
Related Questions
- What is the typical time frame for a mortgage agent to provide the required disclosure statement to a client?
- Funds received from a client or investor that the brokerage holds on their behalf must be deposited into:
- Ontario mortgage agents must complete which of the following at each licence renewal?
- Which entity is responsible for licensing and regulating mortgage brokers and agents in Ontario?
- What is a 'material change' in relation to a client's mortgage application?
- Ethical behavior for a mortgage broker includes:
More for Mortgage Broker Licensing Practice Exam candidates
Question explanations
- What is the typical time frame for a mortgage agent to provide the required disclosure statement to a client?
- Funds received from a client or investor that the brokerage holds on their behalf must be deposited into:
- Ontario mortgage agents must complete which of the following at each licence renewal?
- Which entity is responsible for licensing and regulating mortgage brokers and agents in Ontario?
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free Mortgage Broker Licensing Practice Exam Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.