Assignment 2 (TVET)
STUDENT NAME Daniel Skrzypek OTEN NUMBER N855096
Please read the “Guide to completing and submitting assignments” before you begin this assignment.
What you need to do
To successfully complete this assignment you must answer the following questions to demonstrate your knowledge. The assignment will be granted a result of “Competent” if the learning outcomes are achieved or “not yet competent” if not. If a result of “Not Yet Competent” is achieved you will be given the opportunity to resubmit your assignment.
Question 1: Describe the meaning of the term ‘Agency’ and identify the types of agency relationships that a real …show more content…
Mortgage brokerages will typically decide between three different relationship options and stick with the chosen option, though in some cases, a brokerage may be open to different relationships with different borrowers and lenders, as the particulars of a given situation dictate.
In the case of mortgage brokerages, the brokerage may have a service relationship with the lender, the borrower or neither – in which case the brokerage would act as an intermediary between the lender and the borrower. The mortgage brokerage and its representative’s role and obligations to the borrower and the lender will vary depending on the nature of the service relationship between the mortgage brokerage and the lender or borrower.
Mortgage brokerages may choose to represent the lender and will treat the borrower as a customer of the brokerage. In this service relationship, the brokerage has an obligation to represent the lender’s best interests, and will owe to the lender general, fiduciary and regulatory obligations.
When representing a lender, the mortgage brokerage may treat the borrower as a customer of the lender. The Real Estate Act Rules defines customer as meaning a person who has contacted, but not engaged or employed, an industry member to provide services. The brokerage will treat the borrower (customer) honestly and exercise reasonable care and skill in providing information with respect to the lender’(s) mortgage