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

Question: 1 / 400

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

Insurer

Borrower

Practitioner

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.

Get further explanation with Examzify DeepDiveBeta
Next Question

Report this question

Download Ontario Mortgage Agent Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy