MMC Quiz

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Mortgage Management Compliance Quiz

Test your knowledge on Mortgage Management Compliance (MMC) and the nuances of SVR contracts with our engaging quiz. Designed for professionals in the mortgage industry, this quiz challenges your understanding of relevant guidelines and practices.

10 carefully crafted questions
Multiple choice format for interactive learning
Score your performance to track your knowledge progression

10 Questions2 MinutesCreated by EngagingMortgage202

What is the basis for the SVR/MMC argument?

Banks increasing the surcharge on the Base Rate

Banks changing from a fixed rate to a standard variable rate without informing the customer

Banks charging secret commission which goes to mortgage brokers

Bank of England increasing the Base Rate without telling banks

What documents are required to run am MMC case?

Offer(s) and application only

Complete statements, offer(s) and any deeds of variation

Statements only

Deed of variation, application and PPI redress

If a lender’s interest was contractually set at the Bank of England's base rate (BOE) plus a product margin of 2.5%, what would you write in the interest column of the MMC details sheet?

BOE + 5% surcharge

BOE + 2.5% surcharge

Lender's SVR + 2.5% surcharge

None of the above as the interest rate is set as a fixed rate

If Northern Rock’s interest was contractually set at their own SVR (NRAM), what would you write in the interest column of the MMC details sheet? At the time the contract was written, the NRAM SVR was 6.2% and the BOE base rate was 4%.

NRAM SVR + no surcharge

BOE +10.2%

BOE +6.2%

BOE +2.2%

If a mortgage was taken out on 12 December 2004 and redeemed on 12 July 2009, can we accept this case?

Reject

If a mortgage was taken out on 5 May 2006 and redeemed on 4 July 2011, can we accept this case?

Reject

In the data entry process, which transaction type would you assign to a monthly direct debit paid by the debtor?

Credit - Debtor Initiated

Credit - Review

Consolidated Debt

Credit - Lender Initiated

While scrolling through an MMC case DSAR you find a mortgage advance labelled "repayment" and another advance labelled "interest only". What is this an example of?

Early settlement

Mortgage split

Conversion

Deed of variation

Halifax has offered a buyer a fixed interest rate of 4.99% for the first year of their contract, followed by their own SVR with a discount of -0.25% for a year, followed by their own SVR for the remainder of the contract term. At the time of the contract, the BoE rate was 4% and the Halifax SVR was 7.75%. What would you write in the interest column of the MMC details sheet?

Fixed rate (4.99%), BOE (7.5%), BOE (7.75%)

Fixed rate (4.99%), BOE (3.5%), BOE (3.75%)

Fixed rate (5%), BOE (3.75%), BOE (7.5%)

Fixed rate (4.99%), BOE (3.75%), BOE (3.5%)

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