PROFESSIONAL CODE OF CONDUCT
Recognizing that RMP® and ARMP designees are authorized to act in the capacity of a Mortgagor Financial RepresentativeTM or MFRTM professional and that not all RMP® and ARMP designees may choose to do so at all times, all designees agree to observe and maintain the following standards of conduct as applicable.
Duties to the Clients
Ø Standard of Practice 1-1
If acting in the capacity of a MFR professional, the designee's certificate number issued by MIFSP shall be provided to the consumer at first contact. The certificate number shall also appear in the letter of engagement.
All designees shall provide the consumer with the appropriate e-mail address through which the validity of their MIFSP certificate number can be verified:
VerififyMyARMP@MyFSP.org or VerifyMyRMP@MyFSP.org.
Ø Standard of Practice 1-2
If acting in the capacity of a MFR professional, a letter of engagement signed by both designee and the client shall be provided to the client at the onset of any fee services. The letter of engagement shall outline the services to be rendered by the MFR professional and the fee to be paid by the client for the MOTM Brand Financial Services and/or Mortgage BasedTM Financial Planning services provided in order to avoid any client confusion.
Ø Standard of Practice 1-3
If acting in the capacity of a MFR professional, designee shall enter into a written fiduciary relationship with their clients and shall always put the client’s interests first.
Ø Standard of Practice 1-4
If acting in the capacity of a MFR professional, designee shall provide all MOTM Brand Financial Services and/or Mortgage BasedTM Financial Planning services solely on a fee-only basis. A MFR professional shall charge either a flat fee or an hourly fee that is fair and reasonable based on the amount of time and skill required. (This requirement is not intended to change the method of compensation for other services or financial/mortgage products the designee may provide).
Ø Standard of Practice 1-5
All designees shall be specifically authorized to independently, or as part of a group practice, offer MOTM Brand Financial Services and Mortgage BasedTM Financial Planning Services.
Ø Standard of Practice 1-6
All designees shall strive to provide guidance to their clients that is in line with both the client's Mortgage MissionTM Statement and Mortgage Strategy & Investment PolicyTM Statement if known.
Ø Standard of Practice 1-7
All designees shall strive to do their best to identify cost saving factors beyond rate and closing costs that should be considered when obtaining, maintaining or managing a mortgage as appropriate.
Ø Standard of Practice 1-8
If acting in the capacity of MFR professional, designee shall strive to provide guidance to the client on how to shop for a mortgage and on how to maximize the benefits of shopping for a new mortgage if a new mortgage is warranted by the facts.
Ø Standard of Practice 1-9
If acting in the capacity of MFR professional, designee shall strive to provide the client with information that will result in the disclosure of loan fees at the time the consumer locks in the rate of the loan.
Ø Standard of Practice 1-10
If acting in the capacity of MFR professional, designee shall not guarantee any particular result from the client’s mortgage shopping.
Ø Standard of Practice 1-11
If acting in the capacity of MFR professional, designee shall not act as "Agent" to a principal financial product provider or as a "Salesperson" to the customer at any time during their engagement as a MFR professional. (This requirement is not intended to hinder designees from providing other services or products to the client after the conclusion of the MFR engagement.)
Ø Standard of Practice 1-12
If acting in the capacity of MFR professional, designee shall strive to provide objective guidance to a client because they are not acting as a sales agent of any kind during the MFR engagement. As a MFR professional, they are on the same side as the client and are never compensated on a commission basis for MOTM Brand Financial Services or Mortgage BasedTM Financial Planning. (This requirement is not intended to hinder designees from being compensated for providing other services or products to the client after the conclusion of the MFR engagement.)
Ø Standard of Practice 1-13
All designees recognize that sometimes "a good loan maybe no new loan at all".
Ø Standard of Practice 1-14
All designees shall have a duty to always strive to provide service and advice in the best interest of their clients and to make fair and complete disclosure of all material facts and to employ reasonable care to avoid client misunderstanding.
Ø Standard of Practice 1-15
If acting in the capacity of a MFR professional, designee shall have no present or contemplated future interest in any property that maybe the subject of a current mortgage or prospective mortgage analysis.
Ø Standard of Practice 1-16
If acting in the capacity of a MFR professional, designee shall have no present or prospective personal interest or bias with respect to the participants in the transaction.
Ø Standard of Practice 1-17
All designees shall avoid unauthorized disclosure of confidential information.
Ø Standard of Practice 1-18
If acting in the capacity of a MFR professional, designee shall not accept any commission, rebate, or profit on MOTM Brand Financial Service or Mortgage BasedTM Financial Planning related expenditures made for their clients without the client’s expressed knowledge and consent.
Ø Standard of Practice 1-19
All designees shall not recommend or suggest to a client the use of services of a business entity in which they have a direct interest without disclosing such interest at the time of the recommendation or suggestion.
Ø Standard of Practice 1-20
If acting in the capacity of a MFR professional, designee shall provide the client with the appropriate report and a receipt upon being paid by the client signifying the end of the engagement.
Ø Standard of Practice 1-21
All designees shall not base their analysis on the race, color, religion, sex, handicap or national origin of either the mortgagor or prospective borrower or occupant of a home.
Duties to the Public
Ø Standard of Practice 2-1
All designees shall conduct business in a manner reflecting honesty, honor, and integrity.
Ø Standard of Practice 2-2
All designees shall diligently endeavor to be accurate in all advertisements and solicitations. If holding out as a MFR professional, designee shall clearly identify their professional fiduciary status in any such advertising.
Ø Standard of Practice 2-3
No designee shall knowingly and deliberately make any misleading statements or promises to any consumer in an attempt to solicit business.
Ø Standard of Practice 2-4
No designee shall misrepresent or overstate their credentials, education, training, experience or professional status.
Ø Standard of Practice 2-5
No designee shall deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status or national origin.
No designee shall discriminate, nor be party to any plan or agreement to discriminate, against any person or persons on the basis of race, color, religion, sex, handicap, familial status, or national origin.
Duties to the Profession
Ø Standard of Practice 3-1
All designees shall comply with all applicable state and federal laws and regulations.
Ø Standard of Practice 3-2
It is MIFSP’s position that providers of Mortgage BasedTM Financial Planning Services and MOTM Brand Financial Services are exempt from registration as mortgage brokers, loan officers, or investment advisers’ laws of most states and thus are not subject to the licensing, bonding or education requirements of those laws.
Ø Standard of Practice 3-3
Designees maybe subject to the anti-fraud provisions of the mortgage brokerage or investment adviser acts of most states and are specifically forbidden by their status as RMP® or ARMP designees from soliciting, or acting in the capacity of a mortgage broker or loan officer during the course of any engagement where they are serving in the capacity of a Mortgagor Financial Representative or MFR professional.
Ø Standard of Practice 3-4
While the Professional Code of Conduct establishes obligations that may be higher than those mandated by law, in any instance where the Professional Code of Conduct and the law conflict, the designee’s obligation to abide by the law will take precedence.
Ø Standard of Practice 3-5
All designees shall refrain from any conduct that would be adverse to the best interest and purpose of the mortgage planning profession. All designees shall be forever vigilant of the importance of their role and shall conduct themselves only in the most ethical and professional manner at all times.
Ø Standard of Practice 3-6
All designees shall endeavor to exemplify the highest possible ethical standards of all those who practice within the financial services industry. All designees shall endeavor to continue their professional development throughout their career by continuing education through courses, seminars and other studies.
