All else being equal, which of the following mortgage payment structures would typically result in the lowest monthly payment?
Blended. Amortized. Interest accruing. Interest plus specified principal.
Which of the following can offer a 1st mortgage for more than 80% LTV without the mortgage being insured by an institution such as CMHC? Regulated lenders Unregulated lenders Institutional lenders None of the above.
Technically, who gives a mortgage to whom? The mortgagee gives the mortgage to the mortgagor. The bank gives the mortgage to the borrower. The lender gives the mortgage to the borrower. The borrower gives the mortgage to the lending institution.
Which is the following is true?
All else being equal; A lower LTV ratio will result in a higher CHMC premium being paid by the mortgagor. A higher LTV ratio will result in a higher CHMC premium being paid by the mortgagee. A higher LTV ratio will result in a higher CHMC premium being paid by the mortgagor. A lower LTV ratio will result in a higher CHMC premium being paid by the mortgagee.
Under which of the following situations would the borrower be most concerned about an interest rate differential rate penalty? If interest rates have fallen. If interest rates have risen and the lender is charging above posted rates to compensate for an increase in defaults. If interest rates have fallen and the lender is offering a further discount off its posted rate. If interest rates have risen.
Some lenders choose to advance mortgages to individuals who do not meet the standard criteria that most lenders require. These mortgages are known as sub-prime mortgages and carry more risk for the lender, Which of the following is a technique that lenders can use to. lessen or compensate for the increased risk assumed by issuing such mortgages?
Request that the borrower obtain a co-signor (guarantor). Charge a higher interest rate to help compensate for the higher risk. Require the buyer to have more equity in the property by demanding a higher down payment. All of the above.
Salesperson Brown's client wants to sell his property and thinks it is only worth $300,000. Salesperson Brown did a current market value assessment and is certain the property has a market in excess of $330,000. Acting unethically, Salesperson Brown listed the property for $300,000 so he could buy it himself and get a deal. Salesperson Brown had his friend Linus, buy the property with a side agreement that after the property closed, Linus would sell the property to Salesperson Brown for $300,000.
What kind of buyer is Linus? Grass buyer Straw buyer Wheat buyer Hay buyer.
Which of the following could be an indication of fraud? A husband and wife are purchasing the property, but only one of them is going to be on title. A salesperson always insists that buyers and sellers use one specific lawyer.
The borrower is arranging a 2nd mortgage which will bring the LTV above 80%.
The borrower amount has requested that the mortgage insurance premium be added to the mortgage.
Salesperson Smith told his client that on a power of sale the lender warrant the condition of the property (which is not the case). Salesperson Samuel truly believed this to be the true. What is salesperson Smith guilty of? Forgery Misrepresentation Slander Fraud.
Which of the following is one of the purpose of the Consumer Reporting Act? It regulates the types of information that companies can collect on clients or potential clients and how that information may (or may not) be used. It gives individuals the right to know what is reported about them on the credit bureau system. This will allow them to ensure that what is reported is correct and if not, request that such information be corrected.
It establishes the ground rules for the collection of personal private information and how such information can be used. It is designed to prevent money laundering and to facilitate the prosecution of those found guilty of laundering offences.
Which of the following statements are true of Power of Sale versus Foreclosure? In the event of a power of sale, the borrower is responsible for any shortfall between the sale proceeds and the amount owed to the lender. In a foreclosure, if the value of the home is less than the amount owed by the borrower, the borrower is responsible for the shortfall. In the event of a power of sale, the borrower is not responsible for any shortfall between the sale proceeds and the amount owed to the lender. ln a foreclosure, if the value. of the home is less than the amount owed by the borrower, the borrower is not responsible for the shortfall. In the event of a power of sale, the borrower is responsible for any shortfall between the sale proceeds and the amount owed to the lender. In a foreclosure, if the value of the home is less than the amount owed by the borrower, the borrower is not responsible for the shortfall.
Frank is a private mortgage lender who charges rates that not illegal, but are well above the norm. In frank's defence, he often provides mortgage financing to individuals that have been declined by conventional lenders. Frank believe in giving people a chance but shows no leniency when someone is in default. One of the individuals to whom he provided a mortgage loan is up-to-date on his mortgage payments but is 45 days late on his property tax bill.
Frank has just been advised of the overdue tax bill. Frank is considering his legal remedies, which of the following statements is true?
Overdue property taxes do not constitute default on the mortgage. Overdue property taxes are a breach of the mortgagor's obligations and Frank can immediately commence legal remedies. Overdue property taxes are a breach of the mortgagor's obligations. If the mortgagor becomes 90 days overdue, Frank can commence legal remedies. Frank can only pursue legal or non-legal remedies if the borrow defaults on.
Sarah took out a mortgage six months ago. The initial balance was $100.000. and she was required to pay1,200 per month. At the end of the 5-year term, she would owe apprexenatelv $93,000. Sarah recently had some financial difficulties and fell behind two monthly mortgage payments, As a result, the lender demanded payment in full of the payments in arrears and the outstanding balance. What clause in the mortgage agreement made this possible? Foreclosure Giving in payment Acceleration clause Equity of redemption.
Lisa has a $220,000 mortgage registered against her property. Her mortgage term is about to expire and her existing lender is able to offer her an interest rate of 5% after shopping around for the best rates she has found another bank that will offer her the same term at a rate of 4.50%. As a result, Lisa would like to move her existing mortgage to the new lender. What is this called? Mortgage rebuffing Switch financing Equity take-out Bridge financing.
Larry is having difficulty making his mortgage payments. He is past due and he has very little equity in the property. His friend told him about a legal remedy called "quit claim deed" , and described it as follows:
A quit claim deed is a legal remedy that requires court approval. The homeowner gives all interest in the property (ownership) to the lender. In exchange, the lender agrees to share any losses in the property. This means that if the lender eventually sells the property and there is a shortfall between the sale price and the amount owed under the mortgage, the borrower will be responsible for half of the loss and the lender will be responsible for the other half. .
What, if anything, is incorrect friend's description of a quiet claim deed?
It is a non-legal remedy. It does not require court approval, and the borrower is completely released from all obligations under the mortgage. It does not require court approval. The description is completely accurate.
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How long must a mortgage agent be registered before they can qualify (assuming other criteria is met) to become a mortgage broker. 18 months 12 months. There is no minimum time requirement 24 months.
All of the following statements are true regarding seller take back mortgages, Except: A seller take back mortgage can exceed 80% of the property value without being CMHC insured. A real estate salesperson cannot include details of a seller take back mortgage unless he or she is also licensed as a mortgage agent or a mortgage broker, or if a clause is added stating that the agreement is subject to review by the buyers lawyer. A seller may agree to provide a seller take back mortgage to help sell a property that may otherwise be difficult to sell The buyer may avoid certain fees associated with obtaining a mortgage from a traditional lender, such as the cost of having the property appraised.
What is a blanket mortgage? A lien registered against a chattel. It bridges the time between the purchase of one home and the sale of another. A single mortgage on two or more properties, The lender makes periodic payments to the homeowner and the amount of the mortgage gradually increases.
Donald recently purchased a condominium. He was pleased to learn that the monthly condominium fee is only $300. He was also told that the condominium corporation has insurance on the building. Which of the following best describes the insurance coverage that the condominium corporation has put in place? The insurance covers the common elements and all individual unit structures. It does not include any improvements made to a particular unit or the owner's contents (furniture, appliances, etc.) The insurance covers the common elements, individual unit structures, as well as betterments made by unit holders. It does not cover the owners contents. The insurance covers all common elements, all individual units, and all of the unit holders' contents. The premium is paid by the common expenses; therefore, the insurance covers everything including the individual units and all of the owners' contents (upto a specified maximum).
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In terms of mortgage loans, what is a "letter of instruction"? A document that will state the total amount of interest that will be paid over the mortgage term. A document that must be provided to the borrower at least 48 hours prior to the renewal date. A document sent to the buyer's lawyer by the lender to advise him on the details of the mortgage to be registered. A document that contains a direction on making pre-payments.
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