RECA unit 1 quiz latest 2023 already passed

RECA unit 1 quiz latest 2023 already passed Which of the following represents an accountability mechanism that RECA must comply with under the Act? A) RECA must prepare for the Minister of Service Alberta an annual r ...

RECA unit 1 quiz latest 2023 already passed Which of the following represents an accountability mechanism that RECA must comply with under the Act? A) RECA must prepare for the Minister of Service Alberta an annual report for the previous year end B) RECA must prepare for the Minister of Service Alberta an annual consumer report on the investigations conducted C) RECA must prepare for the Minister of Service Alberta a market report on the industries it regulates D) RECA must prepare for the Minister of Service Alberta a report on deposits made to the Real Estate Assurance Fund ✔✔A) RECA must prepare for the Minister of Service Alberta an annual report for the previous year end Which of the following statements is correct regarding the Act? A) The Act enables mortgage brokerage licensing and regulation to be done by the provincial government B) The Act enables mortgage brokerage licensing and regulation to be done by the federal government C) The Act enables mortgage brokerage licensing and regulation to be done by the industry D) The Act enables mortgage brokerage licensing and regulation to be done by the brokerages ✔✔D) The Act enables mortgage brokerage licensing and regulation to be done by the brokerages Which of the following is NOT a benefit of RECA's audit program A) It identifies and resolves potential problems regarding brokerage trust accounting requirements B) It develops effective brokerage record keeping and administrative procedures C) It establishes performance and evaluation standards for licensed brokerage employees D) It provides education and advice in relation to brokerage trust accounting ✔✔C) It establishes performance and evaluation standards for licensed brokerage employees What is RECA's mandate under the Act? A) Protect consumers and provide services that enhance or improve the industries it regulates B) Update and amend the Act as legislated by the Minister of Service Alberta C) Respond to consumer complaints and seek resolutions D) Oversee the business activities of mortgage brokerage industry members ✔✔A) Protect consumers and provide services that enhance or improve the industries it regulates This type of property includes land, substances in or under the land other than mines or minerals, and anything affixed to the land. A) Real property B) Community property C) Personal property D) Public property ✔✔A) Real property Chattels are also known as what type of property? A) Exclusive property B) Private property C) Personal property D) Individual property ✔✔C) Personal property What are some benefits that mortgage brokerage trade associations offer their members? A) Seminars and educational opportunities B) A fair marketplace for borrowers and lenders C) Licensing standards for mortgage industry members D) Standards by which lenders can pay industry members ✔✔A) Seminars and educational opportunities According to The Fundamentals of Mortgage Brokerage which of the following is considered a definition of a 'mortgage'? A) Pledging of real property as security for a debt B) Security over property given to a lender for repayment of a loan C) A financial product offered by a lender to a borrower D) All answers are correct ✔✔D) All answers are correct Which of the following activities represents a mortgage brokerage industry member dealing in mortgages? A) Negotiating the terms of a mortgage transaction B) Buying, selling or exchanging mortgages or offering to do so C) Soliciting a person to borrow or lend money secured by a mortgage D) All activities are considered as dealing in mortgages ✔✔D) All activities are considered as dealing in mortgages Which is the legal term used to describe the borrower in a mortgage transaction? A) Mortgagee B) Mortgagor C) Borrower D) Debtor ✔✔C) Borrower Which of the following activities does RECA undertake as part of its mandate? A) Audits and investigations B) Licensing and industry education C) Consumer information and protection D) All of the activities are included ✔✔D) All of the activities are included How does RECA discourage unethical or illegal business practices regarding the industries it regulates? A) By regulating the fees that industry members charge for their services B) By investigating complaints and conducting disciplinary proceedings C) By overseeing the operations of professional trade associations D) By legislating amendments to the Act ✔✔B) By investigating complaints and conducting disciplinary proceedings Apart from institutional lenders, what other lenders are involved in originating mortgages? A) Private lenders B) Mortgage investment corporations C) Syndicated mortgages D) All are lenders involved in originating mortgages ✔✔D) All are lenders involved in originating mortgages Which of the following is part of RECA's commitment to consumer protection? A) Establishing education standards for entry into the industry B) Providing information to consumers about real estate, mortgage brokerage and real estate appraisal services C) Setting standards of business conduct that promote the integrity of the industry D) All statements relate to consumer protection ✔✔D) All statements relate to consumer protection Consumers experience several benefits when working with a mortgage brokerage industry member. Which statement best describes one of these benefits. A) Schedule evening and weekend appointments if needed B) Ensures that the mortgage contract is legally binding C) May be paid by the lender, saving the borrower legal fees D) May conduct appraisals and not charge for these services ✔✔A) Schedule evening and weekend appointments if needed Which are the following statements is correct regarding investigations conducted by RECA? A) RECA investigates complaints related to an industry member's failure to comply with the standards of practice B) RECA investigates matters that relate to an industry member's suitability to remain licensed C) RECA investigates complaints into a industry member's conduct that is in breach of the Act or Rules D) All statements are correct ✔✔D) All statements are correct What is the difference between the primary mortgage market and the secondary mortgage market? A) First mortgages are part of the primary mortgage market while subsequent mortgages are part of the secondary mortgage market B) The primary mortgage market consists of institutional lenders while the secondary mortgage market is made up of private lenders C) The primary mortgage market consists of lenders supplying funds directly to borrowers while the secondary mortgage market offers mortgage-backed securities to investors D) Rates in the primary mortgage market are typically lower than rates in the secondary mortgage market ✔✔C) The primary mortgage market consists of lenders supplying funds directly to borrowers while the secondary mortgage market offers mortgage-backed securities to investors Which entity has the authority to amend the Act? A) Real Estate Council of Alberta B) Provincial Legislature C) Alberta Real Estate Association D) Alberta Mortgage Brokers Association ✔✔B) Provincial Legislature Alberta's mortgage brokerage industry is self-regulated. Which of the following statements are true?RECA is responsible for the administration of the Act, the Rules, the Regulations and the BylawsRECA is responsible for the protection of consumers as relates to the industries it regulatesThe Minister responsible for the Act may make recommendations to amend the ActRECA is funded by the Alberta taxpayers and the provincial government A) I & II are correct B) III & IV are correct C) I, II & III are correct D) II, III, & IV are correct ✔✔C) I, II & III are correct Which of the following items must mortgage brokerage industry members disclose in writing to borrowers? A) The range of lenders whose products they offer B) The nature of their relationship with the lender C) How the brokerage will be compensated D) All must be disclosed in writing ✔✔D) All must be disclosed in writing n addition to the Act, there are other Alberta statutes that affect the mortgage brokerage industry. Which of the following are included in these statutes?Fair Trading ActAlberta Interest ActLaw of Property ActPersonal Information Protection Act A) I, II, and III are included B) I, III, and IV are included C) II, III and IV are included D) All of these are included ✔✔B) I, III, and IV are included Which is the legal term used to describe the lender in a mortgage transaction? A) Mortgagor B) Lender C) Mortgagee D) Lien-holder ✔✔C) Mortgagee In addition to mortgage brokerage trade associations, other organizations are involved with the industry. Choose the answer below that includes these other organizations. A) Provincial Government, Canadian Bank Regulators Association, Law Society of Alberta B) Provincial Government, Federal Government, Law Society of Alberta C) Law Society of Alberta, Real Estate Assurance Fund, Provincial Government D) Federal Government, Personal Information Protection Department, Law Society of Alberta ✔✔B) Provincial Government, Federal Government, Law Society of Alberta Which of the following statements apply to mortgage insurers? A) Mortgage insurers protect borrowers who default on their loan B) Mortgage insurers protect borrowers from loss due to any cause C) Mortgage insurers protect lenders when borrowers default on their loan D) Mortgage insurers protect lenders from loss due to a decrease in property value ✔✔C) Mortgage insurers protect lenders when borrowers default on their loan