Chapter 11: First Contact

1.      Describe the documentation that must be obtained by a Mortgage Agent in every mortgage transaction.

·         Employment Verification

·         PIPEDA Consent

·         Photo Identification

·         Divorce/Separation Agreement (if applicable)

·         Child Support Order/Agreement (if applicable)

2.      What documentation is typically required for a self-employed individual?

·         Financial Statements

·         Business License

·         Business Cheque.

3.      What documentation is typically required for a purchase transaction?

·         Purchase and Sale Agreement

·         MLS Listing

·         Proof of Downpayment

·         Rental Letter (if applicable)

·         Realtor Information.

4.      What documentation is typically required for a refinance, equity take-out or switch transaction?

·         Current Mortgage Statement

·         Charge/Mortgage

·         Transfer/Deed

·         Property Tax Statement

·         Property Insurance Policy

·         Mortgage Repayment History (if applicable).

5.      Discuss the importance of the file checklist.

A file checklist is a key component for ensuring that the required documentation is obtained on every transaction.  This prevents the embarrassment of having to go back to a client for additional documentation in the future and provides a quick summary of what is in the file. 

6.      Where are the different places that a client may be met and what are the pros and cons of each?

·         The client’s home

·         The Mortgage Agent’s office

·         Another outside location.

Pros and cons are found in chapter 11.3

7.      Why is it important to verify an applicant’s identity?

In today’s mortgage market, identity theft and impersonation are a significant concern, making it necessary for the Mortgage Agent to verify the identity of his or her client at the initial consultation. 

8.      Discuss the difference between a co-applicant and a guarantor.

A co-applicant will go on title with the primary borrower and is equally responsible for the debt.  A guarantor, while equally responsible for the debt, is not registered on title.

9.      Why is it important to have the mortgage application signed by the applicant(s)?

By having the client’s signature on the application, the Mortgage Agent has consent to complete the necessary investigations to obtain a commitment from a Lender.  Although verbal authorization is acceptable, some applicants may dispute providing authorization at some point in the future. 

10.  How can a Mortgage Agent determine the applicant’s needs?

To determine the applicant’s needs, specific questions must be asked.  Refer to the Needs Assessment form.