Chapter 7
1.
An ethical
mortgage broker may co-exist in a fundamentally unethical brokerage.
False – an ethical mortgage broker will find it very difficult to be successful in an unethical brokerage because there will undoubtedly be many conflicts.
2.
The
main, core values of the mortgage industry are fairness and complying with the
Act and
Regulations.
False – While fairness can be defined as the ability to make judgments free from discrimination or dishonesty, it doesn’t necessarily mean doing what’s in the best interests of a client. The core values of the industry are honesty, integrity, acting in the best interests of the clients and the industry and complying with the law and codes of conduct.
3.
If a
mortgage agent has not been properly trained, he might be unable to act in the
best interests of the client.
True – a mortgage agent may not be able to determine which product is best or if the product is suitable for his or her borrower if the mortgage agent hasn’t been properly trained.
4.
The
decision-making model consists of a number of steps which may be applied in any
order.
False – they must be applied in their specific order
5.
Within the
decision-making model, it is important to review the process to ensure that each
test was applied without bias.
True
6.
Even with
all the facts in a given scenario, a mortgage broker needs to apply the
decision-making model to ensure that the best interests of the client are
served.
True
7.
A solution
that appears to be in the best interests of the client might not be in the best
interests of the industry.
True
8.
Personal
development as a broker is the responsibility of the broker and not the
brokerage.
True
9.
CAAMP is a
national trade association and IMBA is a provincial one.
True
10.
Product
knowledge is one of a number of components of technical proficiency.
True
1.
In your
opinion how ethical is the mortgage industry and what needs to be done to
improve upon this, if anything?
This is an opinion based question.
2.
Explain the
core values of the mortgage industry as you would to someone not in the
industry.
You must be able to explain, in your own words, honesty, integrity, acting in the best interests of the clients and the industry and complying with the law and codes of conduct.
3.
Using an
ethical dilemma that you have encountered or heard of in your career, apply the
ethical decision making model and determine the appropriate course of action.
You must apply the nine steps as defined in chapter 7.
4.
In your
opinion, what effect do industry designations have in regards to
professionalism?
This is an opinion based question.
5.
Visit both
CAAMP’s and IMBA’s websites and list the requirements to obtain each of their
designations.
CAAMP’s AMP designation:
1. Be a CAAMP member in good standing and abide by the CAAMP Code of Ethics.
2. Have a minimum level of experience in the mortgage industry, demonstrate proficiency AND provide proof of experience using Option 1 or Option 2 below
Option 1 - Proficiency Course
• Provide proof of at least two years of experience in the mortgage industry AND
• Provide proof of successful completion of the CAAMP Challenge Exam OR a CAAMP approved proficiency course.
Option 2 - Five Year Rule
• Provide proof of five or more years of experience in the mortgage industry AND
• Provide letters or e-mails of reference from two AMP members in good standing. The references must recommend that the applicant be granted the AMP and may be included as one of the documents used to provide proof of experience
3. Complete CAAMP's mandatory pre-accreditation course, Ethics and Responsibilities for Mortgage Professionals, either online or in seminar format
IMBA’s CPMA designation
1. Be an IMBA member in good standing and abide by IMBA’s Code of Conduct and By-laws.
2. Have been a mortgage agent for a minimum of two years
3. Have successfully completed a mortgage agent’s education program (IMBA’s or Seneca’s)
IMBA’s CMPB designation
1. Be an IMBA member in good standing and abide by IMBA’s Code of Conduct and By-laws.
2. Provide evidence of continuous activity as a mortgage broker or authorized agent of a mortgage broker during the past five years
3. Score at least 125 points as per the rating system used in the application