Ontario Mortgage Agent Practice Exam 2025 - Free Mortgage Agent Practice Questions and Study Guide

Question: 1 / 400

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

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.

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