Chapter 2 - The Mortgage Brokers Act and Professional Ethics Exam Questions Answered Correctly
Mortgage Broker Act
Mortgage Brokers Act Regulations - Answers are statutes that regulate the conduct of all persons who
deal in mortgages in British Columbia (2)
Provincial - Answers The mortgage broker Act and regulations are provincial or federal statutes?
Business Practices and Consumer Protection Act - Answers what additional act contains provisions
governing mortgage broker conduct
BC Financial Services Authority (BCFSA) - Answers an independent Crown regulatory agency that
administers a number of statutes and regulations. It's provincial regulatory jurisdiction extends to credit
unions and trust companies, insurance, pensions, and mortgage brokerage.
3 - Answers Which section of the Act requires mortgage brokers and sub mortgage brokers to be
registered in the mortgage broker register, which is maintained by the Registrar
Ensuring competency
Ensuring appropriopriate conduct
Maintaining registry of professionals - Answers Purposes of the act (3)
Only mortgage broker - Answers Can companies be registered as a mortgage broker or submortage
broker?
FABMLC
1. facilitating mortgages as a business
2. Advertising self as a mortgage broker
3. Buying or selling mortgages
4. Makes =>$1000 for arranging mortgages
5. Lends money on 10 or more mortgages
6. Collects money secured by mortgages as a business - Answers What are any actions that define a
mortgage broker? (6)
arranging mortgages - Answers include any essential activity which is part of the process of a borrower
obtaining a mortgage from a lender
from the time they begin to communicate with a prospective borrower - Answers When does an
individual begin the process of arranging a mortgage with a client?
, submortgage broker - Answers means any person who, in British Columbia, actively engages in any of
the things referred to in the definition of mortgage broker and is employed, either generally or in a
particular case, by, or is a director or a partner of, a mortgage broker.
no - Answers are any mortgages rendered void or unenforceable because of the failure of a person
acting as a mortgage broker to register properly under the Act?
no - Answers Does the act allow submortgage brokers to be a company under a mortgage broker?
•insurance companies
•banks under the Bank Act
•credit unions
•extraprovincial trust companies
•a lawyer, if the loan transaction is made in the course of his or her practice
•any person acting for the government or for an agency of the government;
•a liquidator, receiver, trustee in bankruptcy, or person acting as mortgage broker or submortgage
broker under their proper name;
•a person lending money on the security of land to provide housing for the person's employees -
Answers Entities that are exempt from being registered under the Act
1. order certain documents or send and accept certain documentation between the registered broker
and the borrower or lender;
2. perform accounting or bookkeeping services for the broker; and
3. prepare documentation for the broker to execute with clients, provided that the documentation will
be reviewed and vetted by the registered broker. - Answers What are mortgage broker assistants
allowed to perform for their broker?
yes - Answers Are mortgage brokers liable for their assistant's actions
Agents who facilitate the sale of a vendor take-back mortgage where that transaction is ancillary to the
real estate licensee's role in the transaction that gave rise to the mortgage - Answers When are real
estate agents exempt from being registered with the act?
Designated individual - Answers What individual at a brokerage is responsible for sponsoring a sub
mortgage broker for their registration?
yes - Answers Are designated individuals liable for assessing the experience, qualities, reputation of
submortgage brokers at their brokerage?
Mortgage Broker Act
Mortgage Brokers Act Regulations - Answers are statutes that regulate the conduct of all persons who
deal in mortgages in British Columbia (2)
Provincial - Answers The mortgage broker Act and regulations are provincial or federal statutes?
Business Practices and Consumer Protection Act - Answers what additional act contains provisions
governing mortgage broker conduct
BC Financial Services Authority (BCFSA) - Answers an independent Crown regulatory agency that
administers a number of statutes and regulations. It's provincial regulatory jurisdiction extends to credit
unions and trust companies, insurance, pensions, and mortgage brokerage.
3 - Answers Which section of the Act requires mortgage brokers and sub mortgage brokers to be
registered in the mortgage broker register, which is maintained by the Registrar
Ensuring competency
Ensuring appropriopriate conduct
Maintaining registry of professionals - Answers Purposes of the act (3)
Only mortgage broker - Answers Can companies be registered as a mortgage broker or submortage
broker?
FABMLC
1. facilitating mortgages as a business
2. Advertising self as a mortgage broker
3. Buying or selling mortgages
4. Makes =>$1000 for arranging mortgages
5. Lends money on 10 or more mortgages
6. Collects money secured by mortgages as a business - Answers What are any actions that define a
mortgage broker? (6)
arranging mortgages - Answers include any essential activity which is part of the process of a borrower
obtaining a mortgage from a lender
from the time they begin to communicate with a prospective borrower - Answers When does an
individual begin the process of arranging a mortgage with a client?
, submortgage broker - Answers means any person who, in British Columbia, actively engages in any of
the things referred to in the definition of mortgage broker and is employed, either generally or in a
particular case, by, or is a director or a partner of, a mortgage broker.
no - Answers are any mortgages rendered void or unenforceable because of the failure of a person
acting as a mortgage broker to register properly under the Act?
no - Answers Does the act allow submortgage brokers to be a company under a mortgage broker?
•insurance companies
•banks under the Bank Act
•credit unions
•extraprovincial trust companies
•a lawyer, if the loan transaction is made in the course of his or her practice
•any person acting for the government or for an agency of the government;
•a liquidator, receiver, trustee in bankruptcy, or person acting as mortgage broker or submortgage
broker under their proper name;
•a person lending money on the security of land to provide housing for the person's employees -
Answers Entities that are exempt from being registered under the Act
1. order certain documents or send and accept certain documentation between the registered broker
and the borrower or lender;
2. perform accounting or bookkeeping services for the broker; and
3. prepare documentation for the broker to execute with clients, provided that the documentation will
be reviewed and vetted by the registered broker. - Answers What are mortgage broker assistants
allowed to perform for their broker?
yes - Answers Are mortgage brokers liable for their assistant's actions
Agents who facilitate the sale of a vendor take-back mortgage where that transaction is ancillary to the
real estate licensee's role in the transaction that gave rise to the mortgage - Answers When are real
estate agents exempt from being registered with the act?
Designated individual - Answers What individual at a brokerage is responsible for sponsoring a sub
mortgage broker for their registration?
yes - Answers Are designated individuals liable for assessing the experience, qualities, reputation of
submortgage brokers at their brokerage?
