Dealing honestly and fairly and accounting for all funds apply to all three disclosure relationships. In actual fact, not all agents are employees. b. Which of the following statements regarding the going concern concept is true? Social class was based on one's position in the, Which one of the following statements is true regarding the decision-model approach to research? b) To determine the ability of the entity to continue to provide servic, What non-quantitative aspects may also be relevant to a funding decision? "By locking in the upfront fee eliminations announced last October, FHFA is taking another step to ensure that the Enterprises advance their mission of facilitating equitable and sustainable access to homeownership," said FHFA Director Sandra Thompson in the January statement. What is the primary agency that governs "publicly owned" companies? Which one of the following does economic theory suggest? The correct answer is C) Few agency relationships between parties may be defined or governed by accounting numbers. What is the main reason that an agency relationship exists in the corporate form of business organizations? This relationship is a legal relationship that is governed by agency laws. FHFA Announces Updated Equitable Housing Finance Plans for Fannie Mae and Freddie Mac | Federal Housing Finance Agency. What is meant by market efficiency? Which of the following statements is false? 2023, https://www.tillis.senate.gov/2023/4/tillis-marshall-lead-letter-to-biden-administration-blasting-proposal-to-subsidize-high-risk-borrowers-with-low-credit-scores. Which of the following method can be used to identify a profit center? About Fannie Mae & Freddie Mac | Federal Housing Finance Agency. The statement is FALSE. Which of the following factors is included in the time-driven model of leadership? (C) In actual fact, not all agents are employees. Express agreements have clearly stated terms and are sealed with words or a contract. In commercial real estate transactions that meet specific criteria, a real estate brokerage may use one sales associate to work as a single agent of the buyer and another sales associate to act as a single agent of the seller. Additionally, the new plan makes it easier for those with a poorer credit score (639 or below) to buy homes, even with a down payment of 5% . Its like a teacher waved a magic wand and did the work for me. It may allow the personal interests of individuals to be sacrificed so that the co. What is meant by the statement, "The agency relationship between absentee owners and managers produces a natural conflict of interest"? C) Few agency relationships between parties may be defined or governed by accounting numbers. B) Imperfect markets theory. The principal is a party who gives legal authority to another to act on his or her behalf in business transactions. https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-Updates-to-Enterprises-SF-Pricing-Framework.aspx. Accounting for all funds applies to no brokerage, transaction broker, and single agent relationships. There are four elements of a cause of action for fraud: (1) the licensee made a misstatement or failed to disclose a material fact; (2) the licensee either knew or should have known that the statement was not accurate or that the undisclosed information should have been disclosed; (3) the buyer relied on the misstatement; and (4) the buyer was damaged as a result. Chapter 4_Brokerage Relationships and Ethics Quizzes. Bahney, Anna. What is the principal-agent relationship? What are the relationships between business processes and transaction cycles in an organization? I asked Wilma to purchase supplies on my behalf, and Wilma agreed to do so. d. On Sunday at an open house, a sales associate receives two offers on a home listed for $300,000. The FHFA's updated housing finance plans are an effort to mitigate these disparities, the agency says. This means the principal accepted and recognized an invalid act of agency, thereby making it a valid agency. LendingTree, https://www.lendingtree.com/home/refinance/cash-out/. Consumer Financial Protection Bureau, https://www.consumerfinance.gov/data-research/consumer-credit-trends/mortgages/lending-neighborhood-income-level/. The principal-agent relationship can be entered into by any willing and able parties for the purpose of any legal transaction. Explain the purpose of the debt covenant from a contracting theory perspective. The opposite is true: a person who gives or delegates authority to another is referred to as the principal; the person who accepts the authority is referred to as the agent. Limited liability. What was the initial conclusion drawn from the experiment known as the "small world phenomenon"? Jim Parrott, nonresident fellow at the nonprofit research organization Urban Institute, and Janneke Ratcliffe, vice president for housing finance policy at the institute, wrote: "Some have suggested that the decline in fees for borrowers who put down a smaller down payment shows that FHFA is overcharging those who pose less risk to the government-sponsored enterprises (GSEs) so that it can undercharge those who pose more risk. What kinds of agency problems may arise and how are they resolved? Press briefing by White House Press Secretary Karine Jean-Pierre Such being the case, dual agency was revoked in the state of Florida in 1997. . An error occurred trying to load this video. Common examples of the principal-agent relationship include hiring a contractor to complete a repair on a home, retaining an attorney to perform legal work, or asking an investment advisor to diversify a portfolio of stocks. What is the relationship between investing, speculation and personal financial planning? 18. According to theNational Association of Realtors, the home ownership rate"among Black Americans lags significantly (44%), has only increased 0.4% in the last 10 years and is nearly 29 percentage points less than White Americans (72.7%), representing the largest Black-White homeownership rate gap in a decade." This material may not be reproduced without permission. b. The duties of the agent are: There are many different kinds of agency relationships. https://www.fhfa.gov/Media/PublicAffairs/Pages/Statement-from-FHFA-Director-Sandra-Thompson-on-Mortgage-Pricing.aspx. Rusty's delivers the bones, but Barks and Bubbles fails to pay the bill. a. C. Small groups are powerful influences on c. Describe some typical pairs of entities that might be common in business, and describe their relationships, whether many-to-many, one-to-many, many-to-one, or one-to-one. "Fannie Mae and Freddie Mac's New Pricing Is Not Punishing Those with Better Credit: Follow the Numbers." Many borrowers with high credit scores or large down payments will see their fees decrease or remain flat. Which brokerage relationship duty applies to all three types of brokerage relationships? Our experts can answer your tough homework and study questions. flashcard sets. What action should the sales associate take? Residential sales are defined as the sale of improved residential property of two or fewer units, the sale of unimproved residential property intended for use as two or fewer units, or the sale of agricultural property of five or fewer acres. A single agent relationship may be changed to a transaction broker relationship (or another relationship), provided the agent first obtains the principal's written consent to the change in relationship. Understand what an agency relationship is, learn how a principal-agent relationship works, and see multiple examples. Under the old plan, that fee would be $1,600 (0.500%). The duty of obedience is unique to the single agent relationship. (a) What is a variable interest entity? This site is using cookies under cookie policy . Agency relationships can also be based on apparent authority. Rumors that U.S. President Joe Biden was pushing for, or had introduced, these changes were not supported by evidence. Ashley has a JD degree and is an attorney. lie with the employer. This means that the conduct of both parties expresses an intent to create an agency relationship without a stated agreement. When Wilma places orders for my store, I am the principal and Wilma is working as my agent. Provide two examples of how partnership tax rules reflect the aggregate theory and two examples of how they reflect the entity theory. https://www.fhfa.gov/about-fannie-mae-freddie-mac#:~:text=Today%20it%20is%20a%20shareholder,operates%20under%20a%20congressional%20charter.&text=Freddie%20Mac%20was%20chartered%20by,mortgage%20funds%20throughout%20the%20country. Accessed 27 Apr. A) It must be signed before the seller signs any listing agreement with the agent, or, in the case of the buyer, before that buyer signs the purchase contract. C. Verifiability. The answer is TRANSITION TO TRANSACTION BROKER. I, on the other hand, am a principal. Contractual Liability & Authority of a Principal, Psychological Research & Experimental Design, All Teacher Certification Test Prep Courses, Agency Relationship: Estoppel and Ratification, Contract Law and Third Party Beneficiaries, Product Liability and Consumer Protection, Agency Relationship: Definition, Principles & Problems, CLEP Introductory Business Law Flashcards, Additional CLEP Introductory Business Law Flashcards, UExcel Business Law: Study Guide & Test Prep, Introduction to Macroeconomics: Help and Review, Principles of Business Ethics: Certificate Program, UExcel Business Ethics: Study Guide & Test Prep, Introduction to Computing: Certificate Program, Business 104: Information Systems and Computer Applications, GED Social Studies: Civics & Government, US History, Economics, Geography & World, Principles of Marketing: Certificate Program, Universal vs. General Agent in Real Estate, The Principal-Agent Relationship & Duties in Real Estate, Implied Agency in Real Estate: Definition & Example, Duty Of Good Faith & Due Diligence in Real Estate Transactions, Principals & Agents in Negotiation: Definition & Roles, Indiana Real Estate Agency Relationships: Rules & Disclosures, Agency Relationships & Contracts in Tennessee: Definition & Types, Agency Relationships & Contracts in Maryland: Definition & Types, Broker & Principle Broker Relationships in Oregon, Agency Representations & Disclosures in Virginia, Working Scholars Bringing Tuition-Free College to the Community, Detail the way in which expressed and implied agreements work, Display a thorough understanding of the legality of estoppel and ratification on the principal. B. Similarly, if a buyer were trying to buy a home in ahigh-cost area, say with an AMI of $100,000, they would not have to pay the upfront fees at all if their income is below $120,000. Under the common law tradition of the United States, all D) None of the above. master-servant relationship. Which of the following statements best defines the transactional approach? The brokerage relationship disclosure requirements in Chapter 475 apply to which transaction? (b) Preferring to purchase jeans. What was the underlying assumption of Karl Marx as it related to determining one's position on the social class ladder? Snopes and the Snopes.com logo are registered service marks of Snopes.com. Some examples are: There are different types of agreements within an agency relationship: express and implied agreements.
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