Ontario Mortgage Agent Practice Exam

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Study for the Ontario Mortgage Agent Exam. Prepare with flashcards and multiple choice questions, each question includes hints and explanations. Get ready for your test!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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How do Mortgage Investment Corporations (MIC) generate income for investors?

By providing protection against errors in title
By analyzing the borrower's needs
By facilitating the completion of a transaction
Through dividend payments

The correct answer is: Through dividend payments

Mortgage Investment Corporations (MIC) generate income for investors through dividend payments. This is because MICs typically invest in a portfolio of mortgages, earning interest from borrowers and distributing a portion of that interest as dividends to investors. Options A, B, and C are incorrect as they do not accurately reflect how MICs generate income. Option A refers to title insurance, which is not directly related to MICs. Option B mentions borrower needs, which may be considered when selecting specific mortgages for the portfolio but does not directly generate income. Option C mentions facilitating transactions, which may also be a role of MICs, but not their primary source of income.