A Mortgage Expert has a responsibility to the borrower and the lender. In order to fulfill this responsibility, the Mortgage Expert must develop the skills described above and perform their role in an ethical manner. Lenders will refuse to do business with someone who wastes their time on unrealistic loan applications. And clients will “disappear” if they feel that they have been misinformed or they don’t feel confident in the Mortgage Expert’s ability.

A Code of Ethics is rules of behaviour that describe character and moral conduct and provide a standard of fair, moral practice and, hence, are beneficial to all members involved. Adherence to a Code of Ethics is voluntary, for we display our Code of Ethics through our daily behaviours which are not always monitored by others, even though many professions mandate that their members adhere to such a Code and members can be prosecuted for failing to adhere to such a Code.

The mortgage brokerage industry does not mandate a complete Code of Ethics. Dominion Lending Centres, CAAMP or the other provincial mortgage brokerage associations have developed such a Code to help build the creditability of the industry and increase consumer confidence. It has been proven repeatedly that adopting a professional Code of Ethics will lead to long term success.

The one area of mortgage brokering in which a Mortgage Expert is mandated to behave ethically relates to disclosures and gathering client consents. The Mortgage Expert must ensure that all aspects of an application are disclosed to a lender, and more importantly, it is imperative that the client/borrower is made aware of all details of a transaction. These would include terms and conditions, fees, and any possible conflict of interest. Regarding personal information, the Mortgage Expert must have the borrower’s written consent to request a credit inquiry and the Mortgage Expert is bound by privacy legislation to ensure such information is protected from unauthorized publication. Failure to provide proper disclosure and failure to protect personal information can lead to prosecution.

Lender Relations

If a Mortgage Expert is to receive the best service possible from a lender, it is important that they understand what the lender requires so the underwriter’s job is made easier. Those underwriters who receive well prepared and presented applications from Mortgage Experts are more apt to handle the file quickly in order to provide you the best service they can. It is the Mortgage Expert’s responsibility to become as familiar as possible with the products and style of each lender, and understand the differences between each lender and their various products. Call their representatives or business development managers and introduce yourself. Ask for their help if needed. Remember, the lender wants to do business but they don’t want to waste their time or unnecessarily risk their capital.

What if you are faced with a decline from your lender? Review your submission to see if anything was missed. Review the lender’s policies and products. Did you send the deal to the right place? If you feel strongly that you would like to pursue the deal further, most lenders have an escalation process. Find out what the escalation process is from your business development manager, and ensure that all parties involved are handled with grace and respect. Remember, a lender may still not do your deal in the end, so it is important to determine when to disinvest and move on. How you handle a decline from a lender will definitely set the stage as to how they will handle your future applications.

Gurmit Singh is a licensed mortgage expert with Dominion Lending Centres Mortgage Villa. Being a real estate investor, he is also experienced with commercial mortgages.

Gurmit Singh
Mortgage Expert
M08009905
Dominion Lending Centres Mortgage Villa (11574)
Email:gurmit@gurmitsingh.ca
Website: http://www.gurmitsingh.ca

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