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Mortgage Broker Licensing Practice Exam · Question

Which best describes the 'best interests' duty of a mortgage broker?

The 'best interests' duty requires brokers to put the client's financial well-being and suitability at the forefront of their recommendations. This means object

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Question: Which best describes the 'best interests' duty of a mortgage broker?

Answer options:

  • To always recommend the lender who offers the highest commission to the broker. ✅ To prioritize the client's financial needs, goals, and circumstances above all other considerations, including the broker's own interests.
  • To ensure the client gets approved for any mortgage, regardless of affordability.
  • To only present fixed-rate mortgage options to clients.

Correct answer: To prioritize the client's financial needs, goals, and circumstances above all other considerations, including the broker's own interests.

Explanation: The 'best interests' duty requires brokers to put the client's financial well-being and suitability at the forefront of their recommendations. This means objectively assessing the client's situation and recommending the most appropriate product, not the most profitable for the broker.

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