Houtan HormozianExpert on Real Estate, Finance and PropTech

CRESTICO- Question of the Day- 02-10-2025

10 Feb 2025 · 2 min

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2:02

The video presents two real‑estate licensing style multiple‑choice questions. The first asks which mortgage type is not guaranteed by a government agency; the answer explains that conventional mortgages are privately backed and typically meet Fannie Mae and Freddie Mac criteria. The second describes a scenario where a seller’s listing broker discloses the seller’s alleged financial troubles to a buyer without authorization, leading to the correct answer that the broker’s conduct is unethical and breaches fiduciary duty to the seller, also violating the Realtors Code of Ethics unless the seller had given permission. The content serves as an exam‑prep drill, defining key concepts (conventional loans, fiduciary responsibility) and illustrating ethical pitfalls in brokerage practice.

Chapters

Question of the day. Question number one: Mortgages that are not guaranteed by a government agency are called A. FHA loans, B. FMHA mortgages, C. Conventional mortgages, D. VA mortgages. The answer is C. Conventional mortgages. A conventional loan. is a mortgage that is not backed by any government agency such as the Federal Housing Administration or Veterans Administration. Conventional loans often meet the lending requirements of Fannie Mae and Freddie Mac, the 2 largest buyers of mortgage loans in the U.S. Question number 2: Owner Joe tells his listing broker, Steven, that he wants to sell his house as soon as possible and would accept $350,000. Steven tells buyer Selwyn that Joe has financial troubles and will accept a much lower price Possibly as low as $300,000. Joe ultimately accepts an offer from Selwyn for $300,000. Broker Steven is guilty of: A. Violating the fiduciary duty to buyer Selwyn. B. Nothing, since his job is to find a buyer no matter what. C. Unethical behavior and a violation of the fiduciary responsibility. D. Unethical behavior, But not a serious breach of his fiduciary responsibility to Joe. The answer is C. Unethical behavior and a violation of the fiduciary responsibility. Broker Steven's actions are a clear violation of his fiduciary responsibility to the seller. This would also be a violation of the Realtors Code of Ethics, since the seller did not authorize Broker Steven to disclose such information to the buyer. If Owner Joe's financial troubles were in fact true, and he authorized Broker Steven to inform the buyer of such, it would not be a violation.