BCFSA Mortgage Services Practice Test
Free · 188 Questions.

Question 1

Dana wants to arrange mortgages for pay as an employee of a mortgage brokerage. What does section 3(2) of the Act require of Dana?

• A. A mortgage brokerage licence in Dana's own name as an individual.
• B. A mortgage lender licence issued to Dana by the Superintendent.
• C. A mortgage administrator licence, acting for the employing brokerage.
• D. A principal broker or mortgage broker licence, acting for a brokerage.

Explanation: An individual who provides mortgage services for direct or indirect remuneration, as an employee or otherwise, must be licensed as a principal broker or mortgage broker and act on behalf of a mortgage brokerage (s. 3(2)(a)), unless exempt.

Question 2

An applicant has not completed the applied practice courses required for a new licence. What can the Superintendent do under Rule 9(3)?

• A. Issue a full licence and require the courses to be done at first renewal.
• B. Refuse the application and bar the applicant from reapplying for a year.
• C. Issue a short licence valid for 30 days that cannot be extended or renewed.
• D. Issue a temporary licence conditional on completing or waiving the courses in time.

Explanation: An applicant who has not completed the applied practice courses may be issued a temporary licence under section 19 of the Act that is conditional on taking those courses, or having them waived, within the period specified in the licence (Rule 9(3)).

Question 3

A licensee has not verified the identity of a party by the time the borrower is about to sign the mortgage agreement. What does Rule 42(4) require?

• A. Proceed without telling the other parties if the borrower is a repeat client.
• B. Cancel the transaction unless the parties verify identity within seven days.
• C. Post a notice in the brokerage office until the identity is later verified.
• D. Advise the other parties in writing that identity has not been verified.

Explanation: If a licensee has not verified a party's identity by the times listed in Rule 42(4), such as immediately before the borrower signs the mortgage instrument, the licensee must advise the other parties in writing at that time.

Question 4

What must the conflict of interest disclosure statement in Rules 74 and 75 disclose?

• A. The licensee's gross income for the past fiscal year.
• B. The borrower's credit score and other debt obligations.
• C. The names of other borrowers the licensee has served.
• D. Any direct or indirect interest the licensee or a related party may hold.

Explanation: The statement must disclose any direct or indirect interest that the licensee, or any associate or related party, has or may acquire in the transaction. It must be in an approved form, dated and signed by the licensee, and true, plain and not misleading.

Question 5

A brokerage uses a pooled trust account. Which additional record does Rule 98 require?

• A. A ledger per transaction and a monthly trust liability reconciliation.
• B. A single combined ledger for the whole pool, reconciled each quarter.
• C. A weekly bank statement sent to the Superintendent for review.
• D. A copy of each client's most recent tax return kept on file.

Explanation: For each pooled trust account, the brokerage must prepare separate trust ledgers for each mortgage or transaction and for each licensee or other intended recipient of remuneration, plus a monthly trust liability and asset reconciliation (Rule 98).