MAMB Membership > Code of Ethics

MAMB Adopts Code of Ethics That Members Must Agree to Abide By

Mortgage brokers and their loan originators who want to belong to the Maryland Association of Mortgage Brokers (MAMB) are going to be required to abide by a Code of Ethics and Professional Standards/Best Lending Practices or face removal from the Association, announced Charles DiPino, MAMB president.

"As we've studied recent market events we've come to the conclusion that a few bad apples in our business have caused a great deal of trouble for the professional, ethical broker," said DiPino. "Our new standards of membership will at least provide the Association a means by which it can legally disassociate itself from these individuals."

As part of the new requirement, MAMB members will be expected to adhere to the Code of Ethics and follow best lending practices when assisting consumers through the mortgage origination process.

"Adherence to these standards will assure consumers that the member is acting professionally and without exerting or succumbing to pressure, influence or other tactics that seek to circumvent mortgage industry ethics and professional standards," said Patty McGill, a Certified Mortgage Consultant (CMC) and president of Money Marketing in Frederick who has been appointed to be the chairperson of MAMB's Ethics Committee.

The MAMB Code of Ethics requires that members conduct business in a manner reflecting honesty, honor, and integrity. Members shall not pressure any provider of services, goods or facilities to circumvent industry professional standards; equally, they shall not respond to any such pressure placed upon them.

MAMB members will provide accurate information in all advertisements and solicitations and shall not disclose unauthorized confidential information. Further, they must conduct their business in compliance with all applicable laws and regulations, and disclose any equity or financial interest they may have in the collateral being offered to secure a loan.

In terms of the MAMB Best Lending Practices, members of the Association will promise to offer rates and fees that are not discriminatory based on race, color, religion, national origin, gender, marital status, sexual preference, or disability. They must also follow all federal and state regulations pertaining to the mortgage lending industry and they must disclose accurate information is all solicitations and advertising.

Further, MAMB members must discuss and fully explain financing program options; inform consumers of lock-in options, and provide them with a written document which states loan terms and rates, whether floating or locked. They must explain all documents of the loan application, all costs associated with the loan transaction, the disbursement of fees collected at application, and the loan process from application to closing.

Additionally, MAMB mortgage broker and loan originator members agree to charge only those fees disclosed or re-disclosed on a Good Faith Estimate; communicate in a timely manner with their clients throughout the loan process, and provide a written agreement explaining the nature of the business relationship between themselves and the client as well as how they are compensated.

Finally, MAMB members agree not to engage in or respond to any pressure or influence from any party that seeks to circumvent professional standards, guidelines, rules or regulations in a mortgage transaction.

"We are going to aggressively implement and enforce these new requirements of membership," stressed DiPino. "MAMB is not replacing the work of the state regulators (Division of Financial Regulations). As a matter of course, we will continue to refer consumer complaints to the Division for their investigation. We will, however, accept complaints from broker and associate broker members of the Association."

MAMB has established a broad range of disciplinary actions which are designed to be commensurate with the any violations of the Association's standards. These range from a letter of warning or letter of reprimand to suspension or expulsion of membership.

"When a member receives a sanction of suspension or expulsion of membership," points out MAMB Executive Director Thomas Shaner, "we will notify state regulators, publish the notification in our newsletter, notify the Department of Housing and Urban Development (if appropriate) and notify the National Association of Mortgage Brokers which, in turn, will send notice to all other states where the licensee is a member and add notice of sanction to a special section of its Web site created for the reporting of Ethics violations."

Shaner reported that while the new program has been officially adopted by the MAMB Board of Directors, its full enforcement implementation will begin January 1, 2008.

MAMB would like to thank it's Gold Partners in Education for their continued support:

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