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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Related Questions
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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?
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