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ABOUT THE CALIFORNIA ASSOCIATION OF MORTGAGE BROKERS

CAMB Mission Statement

The California Association of Mortgage Brokers promotes the highest standards of professional and ethical, conduct, among which are expert knowledge, accountability, fair dealing, and service to our clients and our community. The Association provides education, legislative and regulatory representation, and public relations for its membership and the mortgage industry, while serving as a forum for the development of common business interests.

About CAMB

The California Association of Mortgage Brokers was established in 1990 by mortgage professionals throughout the state. Today, CAMB’s members total more than 3,000 mortgage brokers and affiliated service providers across California.

Mortgage brokers are consumer advocates in the mortgage selection process, helping home buyers to pre-qualify, select a mortgage loan, and complete escrow. By linking with banks, other financial institutions, and private lenders, mortgage brokers offer consumers access to a wide range of choices as they select the right mortgage for their needs.

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The History of CAMB

The California Association of Mortgage Brokers (CAMB) is a nonprofit, professional trade organization consisting of licensed real estate brokers, salespersons, and affiliated lenders whose primary business is assisting consumers in obtaining personal and commercial real estate financing, and brokering conventional mortgage loans. The association is organized into 14 regional chapters throughout California. Each chapter is governed by a local board of directors and volunteer members, and holds regular meetings and various activities for its members. CAMB members meet frequently throughout the year at forums, such as the association’s annual convention and sales and marketing conference, held in different parts of the state.

The association’s primary activities are: (1) providing mortgage brokers with accredited continuing educational opportunities and enrichment programs designed to raise industry standards and customer service; (2) strengthening consumer awareness of mortgage broker services; (3) providing CAMB’s members with information about state and federal legislative and regulatory developments related to the industry; (4) protecting the means and methods of mortgage brokering from unfair regulatory restrictions; (5) providing a close union of mortgage professionals the opportunity to network and learn from each other; and (6) working to increase access to home ownership and housing affordability for all Californians.

Since its formation in April 1990, CAMB’s membership has grown to nearly 3,000 mortgage professionals statewide. This growth reflects the mortgage broker’s increasingly prominent participation in real estate finance. In a 1997 survey conducted by the California Association of Realtors, it was reported that mortgage brokers are involved in 80 percent of all purchase money transactions in California. In addition, reliable estimates suggest that there are as many as 10,000 mortgage brokers in California. As the largest association representing mortgage brokers, CAMB anticipates further growth.

In 1992, CAMB was appointed to participate on the Real Estate Finance Advisory Committee (REFAC) created by California Department of Real Estate (DRE) Commissioner Clark Wallace. CAMB serves with other residential real estate and real estate finance-oriented associations that meet monthly to consult with the DRE and discuss a variety of issues related to California real estate law, consumer finance, and the real estate industry.

In 1997 CAMB, in conjunction with the National Association of Mortgage Brokers (NAMB), helped turn the tide after devastating HUD rules and regulations were announced by Secretary Andrew Cuomo. CAMB and NAMB mounted a grassroots effort that generated more than 8,100 comments to HUD. (Previous record was 1,500 comments). Through this and other effective legislative efforts, we successfully placed our names as power players in the industry in front of HUD regulators and members of Congress.

Professional or Associate membership in CAMB requires a DRE broker or salesperson license in good standing, principal responsibility for the named mortgage broker business, and agreement to abide by the demanding CAMB Code of Ethics. Those who join are granted membership in CAMB, NAMB and the CAMB local chapter, thereby providing networking opportunities at the state, federal and local level.

With the enthusiastic support of California’s mortgage professionals, CAMB will continue to work for the industry, continue to provide high quality member benefits, and prepare its members for the challenges of the future.

CAMB salutes those volunteer leaders who help make this association strong and viable. They have led effective state Board of Directors and worked with local chapters to make membership in CAMB an enriching experience. Our Past Presidents list contains some of the leaders of the industry who encourage you to make your membership in CAMB as productive as possible. Serve on a state committee such as membership or legislative, serve on your local chapter Board of Directors and assist in planning local events, respond to those legislative calls to action when they cross your desk, and attend the conventions and sales and marketing conferences where you can learn more about the industry and network with your colleagues. Who knows? One day your name may join the following as key leaders in this rewarding industry.
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CAMB Code of Ethics

The members of the California Association of Mortgage Brokers, believing that the intersest of the public and private sectors are best served throug the voluntary observance of ethical standards of practice, hereby suscribe to the following Code of Ethics.

Honesty and Integrity
CAMB members shall conduct business in a manner reflecting honesty, honor, and integrity.

Professional Conduct
CAMB members shall conduct their business activities in a professional manner.

Honesty in Advertising
CAMB members shall endeavor to be accurate in all advertisements and solicitations.

Confidentiality
CAMB members shall avoid unauthorized disclosure of confidential information.

Compliance With Law
CAMB members shall conduct their business in compliance with all applicable laws and regulations.

Disclosure of Financial Interests
CAMB members shall disclose any financial interest they may have in a loan transaction.
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CAMB Standards of Professional Practice

A Guide to Ethical and Professional Practices in Mortgage Brokerage
Housing is one of the most basic of all human needs. Home ownership is an integral part of the fulfillment of the American Dream. Members of the California Association of Mortgage Brokers (CAMB) act as consumer advocates while obtaining the best financing that is available for the achievement of this dream. The role of the CAMB member is an honor as well as a social responsibility. The CAMB member should always adhere to the highest standards of ethical and professional conduct while fulfilling this responsibility.

The following Standards of Professional Practice are a model by which CAMB members can measure their performance. No Standards of Practice can prescribe actions covering all situations. Common sense and good moral judgment are required in applying ethical principles to the realities of mortgage brokering. The voluntary adherence to these standards will enhance professionalism in the mortgage brokerage industry and foster goodwill among those who do business with the CAMB members.
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ARTICLE I—HONESTY AND INTEGRITY
CAMB members shall conduct business in a manner reflecting honesty, honor, and integrity.

The CAMB member should not be a party to false representations but should instead make full disclosure of all pertinent facts to all parties to the transaction.

The CAMB member, in keeping with their fiduciary duty, should maintain absolute fidelity to the client’s best interests.

The CAMB member should never condone, engage in, or be party to questionable appraisal practices.

The CAMB member should not quote to a prospective borrower interest rates or other loan terms that are not likely to be realized.

The CAMB member should not ask a borrower or employee to sign documents in blank.

ARTICLE II—PROFESSIONAL CONDUCT
CAMB members shall conduct their business activities in a professional manner.

The CAMB member should refrain from any practices that are contrary to the best interest of the public or that are not in keeping with the dignity and integrity of the mortgage brokerage profession.

The CAMB member should charge for services only such fees that are fair and reasonable and that are in accordance with general practice in the mortgage broker’s market area.

The CAMB member should strive to stay in close communication with borrowers and lenders to ensure that reasonable questions are promptly answered and all significant events or problems in a loan transaction are conveyed in a timely manner.

The CAMB member should adopt policies that enable the broker to avoid errors, exaggeration, misrepresentation, and the concealment of any material facts.

The CAMB member should conduct business in a professional manner, ensuring that personnel are knowledgeable in the areas of mortgage brokerage in which they participate and are acting in compliance with sound industry practices.

The CAMB member should commit to continuing education regarding industry principles and practices in order to bring the highest level of knowledge and expertise to their clients.

The CAMB member should cooperate with the California Department of Real Estate’s (DRE’s) enforcement of the Real Estate Law and report to that department any evident violations.

The CAMB member should conduct business in manner reflecting a high standard of harmonious consideration for their colleagues. Further, the CAMB member should refrain from publicly criticizing colleagues or their business practices. However, if the opinion of the mortgage broker is sought, it should be rendered with strict professional integrity and courtesy.

The CAMB member, for the protection of all parties, should ensure that all agreements are in writing, accurately reflecting the agreement of the parties, and that each party, at the time of signing or initialing, receives a copy.

The CAMB member should strive to provide equal opportunity for quality mortgage loan services and a high level of service to all borrowers regardless of race, color, sex, religion, ancestry, physical challenge, marital status, or national origin.

ARTICLE III—HONESTY IN ADVERTISING
CAMB members shall endeavor to be accurate in all advertisements and solicitations.

The CAMB member should not mislead the public with terms and conditions not available and not likely to be made available in the future.

The CAMB member should state clearly in advertising and solicitations that rates and terms are subject to change and include the date quoted rates were available.

The CAMB member should at all times strive to be knowledgeable regarding laws and regulations that affect advertising of mortgage rates, terms, and conditions.

The CAMB member should disclose their membership in CAMB in all oral and print advertising and should include the CAMB logo on stationery and business cards.

The CAMB member should make an accurate and early disclosure to the client of all costs of the transaction.

ARTICLE IV—CONFIDENTIALITY
CAMB members shall avoid unauthorized disclosure of confidential information.

Any personal information divulged to the CAMB member by the client should be given to third parties only with the express authorization of the client. In dealing with parties to whom the CAMB member has not received express authorization to disclose, the information should be restricted to general comments.

In maintaining and discarding borrower files or records, CAMB members should take reasonable precautions to ensure that the confidentiality of borrower’s personal and/or financial information is not compromised. Client files should be stored in a secure manner when not in use. Client files should be securely disposed of to maintain their confidentiality. No copy of the borrower’s credit report should be released to any person who is not the lender or applicant.

ARTICLE V—COMPLIANCE WITH LAW
CAMB members shall conduct their business in compliance with all applicable laws and regulations.

The CAMB member should strive to be knowledgeable of all applicable rules, regulations, and laws pertaining to the mortgage industry.

The CAMB member should closely examine the actions and policies of their employees and associates to ensure compliance with local, state, and federal laws pertaining to the industry.

The CAMB member should strive to maintain strictly defined quality control procedures to avoid fraud.

The CAMB member should not engage in activities beyond the scope of their expertise. If their clients require additional expertise, they should be referred to a professional licensed in that area.

ARTICLE VI—DISCLOSURE OF FINANCIAL INTERESTS
CAMB members shall disclose any financial interest they may have in a loan transaction.

The CAMB member, when recommending or suggesting the use of services of another person or entity, should disclose at the time any direct interest in the entity, or compensation to the broker resulting from the recommendation or referral.

The CAMB member should be fully knowledgeable of DRE regulations regarding trust accounts and collection of unearned fees.