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!

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What does a Mortgage Backed Security represent?

Facilitate the transaction to its successful completion (funding)
An investment in a pool of amortized residential mortgages
Give agent consent to use the applicant's information
A lender's remedy to obtain title to a defaulted property

The correct answer is: An investment in a pool of amortized residential mortgages

A Mortgage Backed Security represents an investment in a pool of amortized residential mortgages. This means that the security is backed by a collection of individual mortgages, providing investors with exposure to the income generated from the underlying mortgage payments. By holding a Mortgage Backed Security, investors receive a share of the interest and principal payments made by homeowners on the mortgages within the pool. This option correctly captures the essence of what a Mortgage Backed Security entails.