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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Which party is compensated for losses incurred in a mortgage transaction by a Mortgage default insurer?

Insurer
Borrower
Practitioner
Lender

The correct answer is: Lender

When a mortgage default insurance policy is in place, the lender is compensated for losses incurred in a mortgage transaction if the borrower defaults on the loan. This insurance provides protection to the lender, allowing them to recover some or all of their losses in the event of a borrower's default. Therefore, the correct answer is D. In the context of this question: - A. Insurer: The insurer is the entity providing the mortgage default insurance and would not be compensated for losses in the event of a default. - B. Borrower: The borrower is not compensated for losses in a mortgage transaction by a mortgage default insurer; instead, the borrower is responsible for repaying the loan. - C. Practitioner: Mortgage practitioners such as mortgage brokers or agents are not typically compensated for losses in a mortgage transaction by a mortgage default insurer; their role is to facilitate the transaction between the borrower and lender.