CODE OF ETHICS
B.C. Mortgage Connection Corp. Mortgage Specialists adhere to the Mortgage Brokers Association of British Columbia Code of Ethics as outlined below. The Code of Ethics is not intended to be exhaustive but rather an indication of the intent and objective of the MBABC and its members to act morally and with honesty and integrity in their dealings with the public.
The MBABC, in drafting the Code, recognized that mortgage broker members, in the course of their business, routinely arrange mortgage products between borrowers and lenders and, as such, have certain obligations and responsibilities to both, whether under client relationship or otherwise. However, in this regard, the Code does not address or attempt to identify client relationship or matters pertaining to the same, as the mandate in development of the Code was to establish and identify ethical and professional standards expected of all member of the MBABC in their dealings with the public. Observance of the Code is the minimum standard.
All words and descriptions shall, wherever defined in the Mortgage Brokers Act, have the same meaning herein unless otherwise defined hereafter. Where words and descriptions are not defined in the Act or hereafter, such words and descriptions shall bear such meaning as defined pursuant to common law.
The term mortgage broker, where used herein, shall include sub-mortgage broker.
"Code": means within the Code of Ethics
"MBABC": means the Mortgage Brokers Association of British Columbia
"Act": means the Mortgage Brokers Act
"Regulations": means the Mortgage Brokers Act Regulations
"Amendments": means the Mortgage Brokers Act Amendments
"Advertising": means any method of communicating with the public, or a part thereof, to either inform or draw attention to, or promote the existence, service, contracts and products of the mortgage broker or to enhance the image of the mortgage broker
A mortgage broker is to claim compensation from the borrower only in the amount and in the manner agreed to by the borrower. Fees payable to the mortgage broker and/or lender and the amount of the fees to be charged are to be discussed with the borrower at the onset of negotiations. The amount of the fees to be charged may take into account the borrower's credit standing, employment, overall financial stability, the value and condition of the property to be mortgaged, general market conditions and the like, but the mortgage broker must not take advantage of the borrower's situation by charging more than is reasonable given the circumstances of the transaction or whereby the cost of borrowing grossly exceeds the cost of borrowing which was available to like borrowers.
A mortgage broker shall provide written disclosure to the borrower of all fees payable by the borrower that are relevant to the mortgage transaction, including fees payable by the borrower to the mortgage broker and/or the lender, in the prescribed form and within the time frame required under the Act and/or as may be required under any other applicable legislation that may govern the same.
A mortgage broker shall provide written disclosure to the borrower of all referral fees, or fees of a similar kind by whatever name called, receivable by a mortgage broker, that are relevant to the mortgage transaction. This disclosure is to be provided in the prescribed form and within the time frame required under the Act and/or as may be required under any other applicable legislation that may govern the same.
Conflict of Interest
a) A mortgage broker shall not provide services to a borrower where the mortgage broker or any associate or related party has or may acquire a direct or indirect financial interest in the mortgage transaction, without providing written disclosure that is true, plain and not misleading of the financial interest to the borrower in the prescribed form and within the time frame as required under the Act and/or as may be required under any other applicable legislation that may govern the same.
b) A mortgage broker shall not invest the funds of a lender or advise a lender to invest in anything where the mortgage broker or any associate or related party has or may acquire a direct or indirect interest in the transaction, without providing written disclosure that is true, plain and not misleading, of the interest to the lender, in the prescribed form and within the time frame as required under the Act and/or as may be required under any other applicable legislation that may govern the same.
Responsibility to Others
Mortgage brokers are to provide to the lender in a mortgage transaction the written investor/lender information statement and all documentation specified there under, where required under the Act and/or any other applicable legislation that may govern the same. Disclosure of the information and documentation required to be contained in the information statement should reflect the best efforts of the mortgage broker to be true, plain and not misleading.
A mortgage broker must immediately terminate their relationship with a borrower if the borrower instructs a mortgage broker to do anything that is illegal or the mortgage broker becomes aware that the borrower has provided false information that could deceive a lender or other person.
Mortgage brokers have a duty to report to the MBABC, where the mortgage broker has reason to believe, or is aware of:
a) dishonest conduct or a breach of the Act by another mortgage broker
b) any person not registered as a mortgage broker who is carrying on business as, or holding himself out as, a mortgage broker
c) any fact which would tend to indicate that a person who has applied to be registered as a mortgage broker is not fit to be so registered
Mortgage brokers have a duty to act fairly with each other and to not disparage or criticize other mortgage broker's reputations. Complaints concerning ethical misconduct or membership violations are to be directed, in writing, to the chairperson of the Ethics Committee of the MBABC.
A mortgage broker must immediately terminate their relationship with a borrower if:
a) the borrower instructs the mortgage broker to do so
b) the borrower instructs the mortgage broker to do anything that is illegal
c) the borrower has provided false information that could deceive a lender or other person
A mortgage broker shall advise any parties relevant to the mortgage transaction involving the mortgage broker and the borrower that the mortgage broker is no longer arranging funds on behalf of the borrower.
Mortgage brokers may be involved in any method of advertising provided it is factual, accurate, verifiable, straightforward and which respects the integrity of the mortgage industry and of other mortgage brokers.
Any advertising, by whatever method used, must not be misleading or structured in such a manner as to be reasonably capable of misleading the public and must be in accordance with requirements of the Act, any advertising bulletin or directive issued by the Registrar of Mortgage Brokers, and/or any other applicable legislation governing the same.
Advertising may include a statement that a mortgage broker is a member of the MBABC but may not indicate or suggest that the mortgage broker represents or speaks on behalf of the MBABC unless expressly authorized to do so by the MBABC.
Mortgage brokers shall continue to upgrade their skills, knowledge and ability in mortgage brokering and shall keep informed as to changes and developments in the common law and in court decisions impacting on the practice of mortgage brokering. Mortgage brokers shall be knowledgeable of, and keep informed of, requirements imposed by the Act, including all regulations or amendments made there under, and all bulletins or directives issued by the Registrar of Mortgage Brokers.
Mortgage brokers shall also keep informed or all other applicable legislation that may impact on the practice of mortgage brokering and requirements or regulations imposed by any other governmental or professional body having jurisdiction.
All members shall be responsible for compliance with this Code, including any revisions or additions thereto, and mortgage broker members shall be responsible for the compliance of any sub-mortgage broker employed by, or a director or partner of, the mortgage broker.
All members shall comply with the Act, including any regulations or amendments made thereunder, all bulletins or directives of the Registrar of Mortgage Brokers and any other applicable legislation or any other governmental or professional body having jurisdiction. In the event of a conflict between this Code and any common law, statutory law, regulation or directive having jurisdiction, such law, rule, regulation or directive shall be paramount.
All members, whether current or former, of the MBABC, violating this Code while member of the MBABC, may be subjected to one or more of the following as decided by the Disciplinary Panel of the Ethics Committee of MBABC.
a) suspension of membership in the MBABC
b) permanent expulsion from the MBABC
c) written reprimand from the Disciplinary Panel of the Ethics Committee
d) publication of the violation and penalty imposed
e) referral of the matter to the Registrar of Mortgage Brokers Hearing and Appeal
Members that are under review by the Disciplinary Panel of the Ethics Committee for possible violation of this Code, and who may be subject to disciplinary action as per above, are entitled to a hearing with the Disciplinary Panel prior to any decision being finalized and may further appeal any decision of the Disciplinary Panel to the Board of Directors of the MBABC.
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