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Mortgage Broker Licensing Practice Exam · Question

A mortgage agent refers a client to a real estate agent. When is a disclosure required regarding this referral?

Any direct or indirect compensation or material interest arising from a referral must be disclosed to the client. This transparency ensures the client is aware

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Question: A mortgage agent refers a client to a real estate agent. When is a disclosure required regarding this referral?

Answer options:

  • Only if the real estate agent is a family member.
  • Never, as it is outside the scope of mortgage services. ✅ If the mortgage agent receives any compensation, benefit, or has a material interest in the referral, this must be disclosed to the client.
  • Only if the client asks about any potential referral fees.

Correct answer: If the mortgage agent receives any compensation, benefit, or has a material interest in the referral, this must be disclosed to the client.

Explanation: Any direct or indirect compensation or material interest arising from a referral must be disclosed to the client. This transparency ensures the client is aware of any potential conflicts of interest that might influence the recommendation.

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