Code of Ethics PREAMBLE WHEREAS, the purposes for organizing the Mortgage Bankers Association of Metropolitan Washington, Inc. are to make efforts to: Nurture the mortgage banking correspondent system; Improve and expand the performance of the mortgage banking business and the secondary market for mortgages; Encourage sound and ethical business practices among its members; Inform its members of changes in mortgage laws and lending practices as well as pending legislation that affects the mortgage banking business and 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 For the protection of all parties, Members shall, whenever feasible, reduce agreements regarding mortgage banking transactions to writing. Nevertheless, 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 terms that are not likely of realization. Canon 9 Members will charge for their services only such fees as are fair and reasonable and which are in accordance with ethical practices in similar transactions. Canon 10 Members will use only clear, simple, truthful and understandable statements in their advertising. Canon 11 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 12 Members shall preserve the integrity of all parts of a loan application and appraisal report and make full disclosure of all pertinent facts, including any interest they may have in the loan project or property. Canon 13 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 according to its terms, with the good faith nature of such a contract being recognized by both parties. Canon 14 Members shall use all reasonable efforts in servicing investments entrusted to their care effectively to discharge their obligations to both investor and debtor in a responsive manner. Canon 15 Members shall take all reasonable steps to assure that both investors and debtors are not unduly inconvenienced by the Member's transfer of servicing. Canon 16 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 17 In the best interest of the general public, Members, subsidiaries and/or associates, their employees, commissioned salesmen or loan solicitors, shall adhere to and comply with the Real Estate Settlement Procedures Act and all other applicable laws and regulations. Canon 18 Members shall cooperate with the Ethics and Grievance Committee in furnishing information relative to any investigation of a possible violation of the Code of Ethics. Violations of and complaints concerning the Code of Ethics shall be filed with the Ethics and Grievance Committee. These Canons Adopted by the Board of Governors December 16, 1993. - HOME - Mortgage Bankers Association of Metropolitan Washington P.O. Box 1522 Olney, MD 20830-1522 (301) 924-0633   Fax (301) 924-4124 e-mail: info@mbamw.org Website: www.mbamw.org