CANONS OF ETHICS | ABOUT MBAG

Canons of Ethics

Our members subscribe to the following Canons of Ethics:

Preamble

WHEREAS, the purposes for which the Mortgage Bankers Association of Georgia was organized, as stated in the Corporate Charter, are:

  • "Preserve and improve the mortgage banking correspondent system and to encourage its use in the making and servicing of mortgage loan investments."
  • "Encourage among its members sound business practices and methods in the making, marketing and servicing of real estate mortgage loans."
  • "Inform its members of changes of mortgage laws and as to pending legislation affecting the real estate mortgage loans."
  • "Sponsor educational meetings for the discussion of real estate mortgage problems."
  • "Cooperate with public and private agencies in the establishment of sound real estate practices."

WHEREAS, the members of this Association are mindful that the soundness, usefulness, prosperity, and future of mortgage banking depend 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 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 interest 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 written agreements.

CANON 5

Members shall not breach or avoid an agreement or commitment, nor encourage others to do so.

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 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 9

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 10

Members shall not quote to a prospective borrower interest rates or other loan terms which are not likely of realization.

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 use all efforts available in servicing investments entrusted to their care to effectively discharge their obligations to both investor and debtor.

CANON 13

Members shall maintain all monies which are received as escrow reserve or impound accounts in a prudent and identifiable manner and shall use these funds for the purpose for which they were received.

CANON 14

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.

Violations of, and complaints concerning, the Canons of Ethics shall be filed with the Ethics and Standards of Practice Committee as provided in Article III of the Bylaws.