Canon of Ethics
PREAMBLE
WHEREAS, the purposes for which the Michigan Mortgage Lenders Association was organized as stated in the Corporate Charter, are:
"Nurture the mortgage banking correspondent system;
Improve and expand the performance of the secondary market for mortgages;
Encourage sound and ethical business practices among its members;
Conduct research in financing techniques that improve the effectiveness of the mortgage banker's participation in the nationwide market for mortgages;
Inform its members of changes in mortgage laws and lending practices as well as pending legislation that affects the secondary market for mortgages;
Sponsor meetings and educational programs;
and Cooperate with public and private agencies in the establishment of sound real estate appraisal practices."
WHEREAS, the Members of this Association are mindful that the soundness, usefulness, prosperity, and future of Mortgage Banking depends upon the honor, integrity and fidelity of all personnel engaged in this business.
THEREFORE, BE IT RESOLVED, that each member of this Association pledges to observe and maintain the following standards of conduct in dealing with the public and with other members.
CANON 1
Members shall conduct their business in a professional manner, ensuring that their personnel are knowledgeable in the areas of mortgage banking in which they participate and are acting in compliance with sound industry practices.
CANON 2
Members shall act in conformity with applicable laws and regulations and shall cooperate in every appropriate way with all governmental bodies in the interests of establishing and maintaining an efficient and fair framework for mortgage credit.
CANON 3
Members shall act in a manner that recognizes that integrity and confidence are essential in the mortgage banking business.
CANON 4
Members shall accord oral agreements the same sanctity given to written agreements.
CANON 5
Members shall not breach or avoid an agreement or commitment.
CANON 6
Members shall encourage healthy competition in the mortgage banking business
CANON 7
Members shall conduct their business without regard to the race, color, sex, religion, marital status, national origin, or age of the persons with whom they deal.
CANON 8
Members shall not quote to a prospective borrower, interest rates or other loan items that are not likely to be realized.
CANON 9
Members shall make all reasonable efforts to process loan applications and advise applicants of approval or disapproval promptly and to close and disburse in a timely manner.
CANON 10
Members shall preserve the integrity of all parts of a loan submission and appraisal report and make full disclosure of all pertinent facts, including any interest they may have in the loan project or property.
CANON 11
Members shall consider a servicing contract to be an integral part of the mortgage banking correspondent system, and such a contract shall be terminated only with sufficient reason with the good faith nature of such a contract being recognized by both parties.
CANON 12
Members shall use all efforts available in servicing investments entrusted to their care effectively to discharge their obligations to both investor and debtor in a responsive manner.
CANON 13
Members shall take all reasonable steps to assure that both investors and mortgagors are not unduly inconvenienced by the member's transfer of servicing.
CANON 14
Members shall maintain all monies that are received as escrow, reserve, or impound accounts in a prudent and identifiable manner and shall disburse these funds for the purpose for which they were received.
CANON 15
Members shall cooperate with the Ethics and Standards of Practice Committee in furnishing information relative to any investigation of a possible violation of the Canons of Ethics and Standards of Practice.
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