Fsra Mortgage Agent Practice Test
Free · 140 Questions.

Question 1

Under the Mortgage Brokerages, Lenders and Administrators Act (MBLAA), which regulatory body licenses and oversees mortgage brokerages and agents in Ontario?

• A. Canadian Mortgage and Housing Corporation (CMHC), under standard rules.
• B. Financial Services Regulatory Authority of Ontario (FSRA), following safety rules.
• C. Ontario Securities Commission (OSC), following safety rules, as required by law.
• D. Real Estate Council of Ontario (RECO), under official standards.

Explanation: FSRA (Financial Services Regulatory Authority of Ontario) is the provincial regulator governing mortgage brokerages, brokers, agents, and administrators under the MBLAA 2006.

Question 2

How long must a mortgage brokerage in Ontario retain all client records, mortgage applications, and transaction files according to MBLAA regulations?

• A. At least 1 year following the closing date of the real estate transaction, under authorized rules.
• B. At least 6 years from the date the mortgage was created or expired, under official standards.
• C. At least 3 years from the date of the loan application, under official standards.
• D. At least 10 years for residential mortgages and 5 for commercial, as defined by policy.

Explanation: Under Ontario Regulation 188/08 (Mortgage Brokerages: Standards of Practice), brokerages must retain all records and documents for at least 6 years.

Question 3

What is the minimum Errors and Omissions (E&O) insurance coverage that a licensed Ontario mortgage brokerage must maintain?

• A. $1,000,000 per occurrence and $2,000,000 annual aggregate.
• B. $250,000 per occurrence and $500,000 annual aggregate, as required by law.
• C. $2,000,000 per occurrence with no aggregate limit, in compliance with law.
• D. $500,000 per occurrence and $1,000,000 annual aggregate, under standard rules.

Explanation: Under MBLAA regulations, a brokerage must maintain E&O insurance with minimum limits of $1,000,000 per occurrence and $2,000,000 aggregate per policy year, plus fraud coverage.

Question 4

Which individual within an Ontario mortgage brokerage is legally designated to oversee compliance and ensure agents adhere to the MBLAA?

• A. The designated Principal Broker.
• B. The Financial Compliance Director.
• C. The President or Chief Executive Officer.
• D. The Senior Managing Underwriter.

Explanation: Every licensed mortgage brokerage in Ontario must appoint a licensed Principal Broker who is legally responsible for managing and supervising the brokerage and its agents.

Question 5

Can an individual hold a mortgage agent licence and trade in mortgages on behalf of multiple brokerages at the same time in Ontario?

• A. Yes, if the agent has been licensed for more than two consecutive years.
• B. Yes, provided both brokerages provide written consent to FSRA, in compliance with law.
• C. Yes, as long as one brokerage handles residential and the other commercial.
• D. No, an agent or broker can only be authorized to trade for one brokerage.

Explanation: Under the MBLAA, a mortgage agent or broker may be authorized to act on behalf of only ONE mortgage brokerage at any given time.