5 - Professional Conduct and Regulation

Question 1

What is mortgage fraud?

Answer 1

someone defrauds a lender through the mortgage process, e.g. by misrepresenting identity, income, overvaluing property, fake identities, etc.

Question 2

What is the contradiction between duty of disclosure and confidentiality?

How is this contradiction solved?

Answer 2

owe duty of confidentiality to both client and client’s lender, but also must disclose all material information to both.

Duty of confidentiality trumps duty of disclosure. Must stop acting for client ‘for professional reasons’.