JJ is a mortgage broker who supervises a team of mortgage agents level 2. One of his team members, Jim, has asked him how to disclose that the borrower is Jim's mother. JJ responds that Jim must: Select one: a. Include this in the terms and conditions of the borrower disclosure b. Include this as a potential risk in Form 1 c. Include this in the borrower disclosure d. Include this as a potential conflict of interest in Form 1 Your investor, Sandy, has completed the risk assessment profile that your brokerage requires all potential investors complete. After analysis, you have determined that she has a medium risk tolerance, meaning she is interested in wealth preservation with potential for growth by investing in medium risk investments. You have a mortgage that you are considering recommending to Sandy based on her profile. It is for a one year term on a property in Hamilton at a LTV of 91%. Given this scenario, which of the following statements is most correct? Select one: a. Sandy's risk profile is irrelevant; you should present the mortgage and allow her to decide b. You must discuss this with Sandy first to determine if she can alter her risk profile c. This appears to fit Sandy's risk profile d. This is likely not an appropriate investment for Sandy

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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JJ is a mortgage broker who supervises a team of mortgage agents level 2. One of
his team members, Jim, has asked him how to disclose that the borrower is Jim's
mother. JJ responds that Jim must:
Select one:
a. Include this in the terms and conditions of the borrower disclosure
b. Include this as a potential risk in Form 1
c. Include this in the borrower disclosure
d. Include this as a potential conflict of interest in Form 1

Transcribed Image Text:Your investor, Sandy, has completed the risk assessment profile that your brokerage requires all potential investors complete. After analysis, you have determined that she has a medium risk tolerance, meaning she is interested in wealth preservation with potential for growth by investing in medium risk investments. You have a mortgage that you are considering recommending to Sandy based on her profile. It is for a one year term on a property in Hamilton at a LTV of 91%. Given this scenario, which of the following statements is most correct? Select one: a. Sandy's risk profile is irrelevant; you should present the mortgage and allow her to decide b. You must discuss this with Sandy first to determine if she can alter her risk profile c. This appears to fit Sandy's risk profile d. This is likely not an appropriate investment for Sandy

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