Eva, a mortgage agent level 2, is preparing the commitment letter for presentation to her client, Emil. Emil is obtaining a private third mortgage that has additional terms and conditions not typical in most private mortgages. Given this scenario what advice should Eva give. Emil? Select one: a. To obtain independent legal advice b. To wait and obtain an institutional mortgage at a later date c. To find another financing solution other than a third mortgage d. There is nothing that Eva should advise Email about other than the mortgage's terms and conditions You have a client with poor credit who is applying with you to obtain a mortgage. This client meets all of the other requirements for approval, however his choices of lenders is limited based on his credit issues. One private lender who is willing to approve this application is offering you a commission in addition to your brokerage fee if you sell the client a higher interest rate, or no commission if you do not sell a higher rate. Given this scenario, which one of the following statements is most correct? Select one: a. Since the lender allows you to charge a higher rate there is nothing wrong with doing this b. You should charge the higher rate and inform the borrower that he is getting a higher rate because of his poor credit c. You must analyze what is in the best interests of the borrower, then make that recommendation d. This is not in the borrower's best interests; therefore, you should offer him the lowest rate possible from this lender 4
Eva, a mortgage agent level 2, is preparing the commitment letter for presentation to her client, Emil. Emil is obtaining a private third mortgage that has additional terms and conditions not typical in most private mortgages. Given this scenario what advice should Eva give. Emil? Select one: a. To obtain independent legal advice b. To wait and obtain an institutional mortgage at a later date c. To find another financing solution other than a third mortgage d. There is nothing that Eva should advise Email about other than the mortgage's terms and conditions You have a client with poor credit who is applying with you to obtain a mortgage. This client meets all of the other requirements for approval, however his choices of lenders is limited based on his credit issues. One private lender who is willing to approve this application is offering you a commission in addition to your brokerage fee if you sell the client a higher interest rate, or no commission if you do not sell a higher rate. Given this scenario, which one of the following statements is most correct? Select one: a. Since the lender allows you to charge a higher rate there is nothing wrong with doing this b. You should charge the higher rate and inform the borrower that he is getting a higher rate because of his poor credit c. You must analyze what is in the best interests of the borrower, then make that recommendation d. This is not in the borrower's best interests; therefore, you should offer him the lowest rate possible from this lender 4
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:Eva, a mortgage agent level 2, is preparing the commitment letter for presentation
to her client, Emil. Emil is obtaining a private third mortgage that has additional
terms and conditions not typical in most private mortgages. Given this scenario
what advice should Eva give. Emil?
Select one:
a. To obtain independent legal advice
b. To wait and obtain an institutional mortgage at a later date
c. To find another financing solution other than a third mortgage
d. There is nothing that Eva should advise Email about other than the
mortgage's terms and conditions
Transcribed Image Text:You have a client with poor credit who is applying with you to obtain a mortgage.
This client meets all of the other requirements for approval, however his choices of
lenders is limited based on his credit issues. One private lender who is willing to
approve this application is offering you a commission in addition to your brokerage
fee if you sell the client a higher interest rate, or no commission if you do not sell a
higher rate. Given this scenario, which one of the following statements is most
correct?
Select one:
a. Since the lender allows you to charge a higher rate there is nothing wrong
with doing this
b. You should charge the higher rate and inform the borrower that he is
getting a higher rate because of his poor credit
c. You must analyze what is in the best interests of the borrower, then make
that recommendation
d. This is not in the borrower's best interests; therefore, you should offer him
the lowest rate possible from this lender
4
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