A mortgage broker differs from a mortgage banker in that a mortgage broker:
Why Acts as an intermediary between borrowers and multiple lenders, earning a fee but not funding the loan Is Correct
Answer C: Acts as an intermediary between borrowers and multiple lenders, earning a fee but not funding the loan
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
People Also Study
Related California Questions
- A property manager who collects rents, signs leases, and manages maintenance on behalf of an owner must hold which California license?Property Management
- A property manager collects rent on behalf of an owner. Under California law, within how many days after the close of the month must the manager provide the owner with an itemized accounting of funds received and disbursed?Property Management
- In California, a deed of trust differs from a mortgage primarily because it:Finance
- Under California law, when must a real estate licensee disclose their license status to the other party in a transaction?DRE & Licensing
- Under California law, the maximum amount a broker may keep of their own funds in a trust account (to cover bank service charges) is:DRE & Licensing
- Under California law, a real estate salesperson legally works under the license of and owes their primary fiduciary duty to:Agency
- Under California law, a real estate licensee is required to disclose their license status in which of the following situations?DRE & Licensing
- A real estate licensee in California is found to have commingled client funds with their personal bank account. This violates:DRE & Licensing
Key Terms to Know
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
State-Specific Concepts
Study This Topic
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →