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Treat all clients with respect and
dignity.
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Protect the client’s privacy and confidentiality and not
distribute personal financial information to any third
party without permission from the client.
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Encourage clients
to discuss the loan transaction with family members
and/or other trusted advisors.
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Inform clients at
no charge about all of the member’s reverse mortgage
programs and assist each client to determine the program
most suitable for his or her needs.
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When estimating
potential reverse mortgage benefits, clearly and
accurately identify all costs.
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Take reasonable
steps to check out the background and procedures of
third parties before accepting referrals of business
from them, and refuse to accept referrals from those
that are found unacceptable. Members shall disclose to
clients any third party with a financial interest in the
reverse mortgage transaction.
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Not imply to a
borrower that he or she is obligated to purchase any
other product or service offered by the member or any
other company in order to obtain a reverse mortgage.
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Pay all loan proceeds directly to the
borrower, except to retire existing debt, pay a
contractor from the borrower’s repair set-aside account,
or pay property taxes or hazard insurance premiums from
the borrower’s set-aside account for taxes and
insurance.
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Employ individuals
who have passed a background check and are found to be
of good moral character.
-
Report any suspected violations of the
Code of Conduct to the National Reverse Mortgage Lenders
Association, and cooperate with all their
investigations.
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Make a good-faith effort to resolve
concerns received from clients about a reverse mortgage
transaction.
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In all of their
loan origination arrangements, comply (with the advice
of qualified counsel as appropriate) with all applicable
regulatory requirements including: (i) provisions of the
federal Real Estate Settlement Procedures Act barring
referral fees; (ii) state mortgage regulatory provisions
requiring licensing by loan originators, if applicable;
and (iii) with respect to FHA-insured HECM reverse
mortgage loans, FHA provisions requiring licensing and
restricting employment arrangements.
