Ethics And The MLO - Chapter 20

Question 1

Ethics

Answer 1

Webster’s Dictionary defines ethics as “the principles of conduct governing an individual or a group.” This chapter is focused on introducing you to the challenges a mortgage loan originator faces every day.

Question 2

Your Responsibilities As A Mortgage Loan Originator

Answer 2

Adhering to the law is a necessity of our business, but is acting ethically just another way of saying, “I obey the law?”

The answer is no. Ethical behavior requires the mortgage loan originator to not only follow the law, but also to ensure that we do not take advantage of the consumer.

The concept that it is the consumer’s responsibility to know the risks associated with a transaction does not apply in the mortgage industry. It’s really the other way around. It’s the mortgage loan originator’s responsibility to ensure that the borrower understands everything associated with the transaction.

Because of this you can consider ethics to be THE LAW + (plus), meaning for a mortgage loan originator to act ethically they must not only follow the law, but they must go above and beyond the law to ensure that the consumer knows what they are doing.