Mortgage Broker Licensing Practice Exam · Question
A mortgage brokerage's trust account is used for:
Trust accounts are legally mandated to segregate client funds from the brokerage's operational accounts. This protects client money and prevents commingling, en
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Question: A mortgage brokerage's trust account is used for:
Answer options:
- Paying the brokerage's monthly operating expenses. ✅ Holding client funds, such as deposits or fees, separate from the brokerage's operating funds.
- Investing the brokerage's surplus profits.
- Paying agent commissions directly.
Correct answer: Holding client funds, such as deposits or fees, separate from the brokerage's operating funds.
Explanation: Trust accounts are legally mandated to segregate client funds from the brokerage's operational accounts. This protects client money and prevents commingling, ensuring financial accountability.
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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:
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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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