Simon is arranging a mortgage for his client. Adam, using his private investor. Susan. Simon feels that he can only adequately represent one party or the other. and in this transaction he is acting on behalf of Susan. Given this scenario which of the following statements is most correct? Select one: a. Simon must act on behalf of both the borrower and the investor b. Simon must disclose this to the borrower but not the investor c. Simon must disclose this to both the investor and the borrower d. Simon does not need to disclose this to either party
Simon is arranging a mortgage for his client. Adam, using his private investor. Susan. Simon feels that he can only adequately represent one party or the other. and in this transaction he is acting on behalf of Susan. Given this scenario which of the following statements is most correct? Select one: a. Simon must act on behalf of both the borrower and the investor b. Simon must disclose this to the borrower but not the investor c. Simon must disclose this to both the investor and the borrower d. Simon does not need to disclose this to either party
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Transcribed Image Text:Simon is arranging a mortgage for his client. Adam, using his private investor.
Susan. Simon feels that he can only adequately represent one party or the other.
and in this transaction he is acting on behalf of Susan. Given this scenario which of
the following statements is most correct?
Select one:
a. Simon must act on behalf of both the borrower and the investor
b. Simon must disclose this to the borrower but not the investor
c. Simon must disclose this to both the investor and the borrower
d. Simon does not need to disclose this to either party
4
Transcribed Image Text:Jacob is a private investor who is concerned about borrowers' abilities to make their
mortgage payments, so he has been reluctant to invest in mortgages in the past.
Joe is a mortgage broker who specializes in private mortgages. Joe has a client who
has considerable equity, but who is currently unemployed. He is an engineer who
lost his job when the company he worked for went out of business. He's had plenty
of job offers but is waiting until one offers him at least as much income as he had
before his job loss, and is confident of doing so in the next four months. Given this
scenario, which of the following statements is most correct?
Select one:
a. If the borrower prepays the mortgage payments this will be a suitable
investment for Jacob
b. Jacob is not a suitable investor for this borrower
c. Without an income this borrower should wait until he is gainfully employed
before borrowing
d. If the borrower prepays the mortgage payments this may be a suitable
investment for Jacob, but more information is required to be certain
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