| Sunday, February 22, 2020


By signing an application for membership in the California Association of Mortgage Brokers, every applicant signals his or her commitment to uphold CAMB's values as follows:

"I pledge to conduct my business in accordance with the laws, rules, and regulations of the state of California, the federal government, and in accordance with the Code of Ethics, Standards of Practice, Bylaws, and Board policies of the California Association of Mortgage Brokers, and the National Association of Mortgage Brokers, as applicable. I understand that failure to do so may result in the termination of my membership
without refund."

The members of the California Association of Mortgage Brokers, believing that the interest of the public and private sectors are best served through 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.

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.

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 finest 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. CAMB members 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 complex realities of the mortgage broker's duties. Adherence to these Standards will enhance professionalism in the Mortgage Brokerage industry and foster goodwill among those who do business with CAMB members.

  • CAMB members, whether by law or by professional commitment, have a fiduciary duty to their clients, and strive to maintain absolute fidelity to their borrower's best interest.
  • CAMB members support consumers' right to be treated fairly and honestly, to be given equal access and full disclosure, and to be subject to an objective evaluation of their creditworthiness.
  • CAMB members encourage borrower loan requests only when there will be a clear benefit to the borrower upon closing, such as realization of property ownership, improved financial situation, or achievement of one or more of borrower's stated financial goals.
  • CAMB members will never knowingly arrange a loan beyond the ability of the borrower to repay per the terms of the applicable promissory note, or which will place the borrower's ownership interest at such risk that its loss may be reasonably foreseen, based on the borrower's circumstances at the time the loan is made.
  • CAMB members make full disclosure of all pertinent facts to parties to a transaction, neither withholding relevant information nor being a party in any way to false representations.
  • CAMB members neither condone, nor engage in, nor allow themselves to be parties to unscrupulous appraisal practices.
  • CAMB members offer only those interest rates and other loan terms to prospective borrowers that are reasonably likely to be realized at closing.
  • CAMB members provide timely and accurate estimates of closing costs, and inform borrowers promptly if expenses change significantly, so that borrowers may look forward with confidence to closing without unanticipated surprises.
  • CAMB members will decline participation in transactions in which other parties, principals, agents, or service providers, are engaged in dishonest or fraudulent conduct.
  • CAMB members will never ask borrowers or employees to sign a document in blank.
  • CAMB members 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.
  • CAMB members charge for services only such fees that are fair and reasonable and in accordance with general practice in the mortgage broker's market area.
  • CAMB members strive to stay in close communication with borrowers and lenders to ensure that questions are promptly answered and all significant events or problems is a loan transaction are conveyed in a timely manner.
  • CAMB members adopt policies and procedures that enable the broker to avoid errors, fulfill compliance requirements, and meet transaction deadlines.
  • CAMB members ensure that they and their employees are knowledgeable in the areas of Mortgage Brokerage in which they participate and are acting in accordance with sound industry practices.
  • CAMB members are committed to continuing education regarding industry principles and practices in order to bring the highest level of knowledge and expertise to their clients.
  • CAMB members stand for harmonious relations, founded on mutual respect among mortgage professionals, within the competitive brokerage industry. CAMB members refrain, therefore, from publicly criticizing colleagues or their business practices; however, if the opinion of the CAMB member is sought, it is rendered with integrity and a careful regard for the reputation of the industry.
  • CAMB members refrain from soliciting borrowers who have signed an application with another reputable broker, and whose loan is already in process, unless the borrower initiates the contact and clearly expresses dissatisfaction with the terms or service of the original broker.
  • CAMB members, for the protection of all parties, 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.
  • CAMB members provide the same high level of quality mortgage loan services to all borrowers regardless of education, level of sophistication, race, color, gender, marital status, religion, age, physical challenge, ancestry, or national origin.
  • CAMB members advertise only to those loan terms and conditions available to qualified borrowers at the time of advertising, and likely to be available at closing.
  • CAMB members state clearly in advertising and solicitations that rates and terms are subject to change and include the date quoted rates were available.
  • CAMB members decline opportunities to participate in multi-broker charts for advertising purposes which require projection of rates and fees that may or may not be available to borrowers when the chart is published. If participation in such a chart is necessitated by business considerations, CAMB brokers will request consumers to call for rates, rather than advertise rates which may not materialize.
  • CAMB members are knowledgeable regarding laws and regulations affecting advertising of mortgage rates, terms, and conditions, and scrupulously strive to comply to the spirit, as well as the letter, of the law.
  • CAMB members who purchase loan leads from third parties take all necessary steps to ensure that the leads were originally obtained through advertising which meets CAMB standards for honesty and full disclosure, and complies with Federal, State, and local laws and regulations.
  • CAMB members disclose their membership in CAMB in oral and print advertising and include the CAMB logo, whenever possible, on stationery and business cards.
  • CAMB members recognize that the information provided by the borrowers in the course of applying for a home loan is deeply personal and private and hold the information int he utmost confidentiality, releasing only what is required for the purposes of arranging the mortgage, and to comply with lawful requests of law enforcement agencies.
  • CAMB members refrain from divulging non-public borrower information in conversation with persons not directly involved in processing or funding a client's loan request, even with other professionals in the mortgage industry.
  • CAMB members ensure that borrower files, borrower lists, processing charts, and other materials containing private confidential information are maintained in locations and under conditions which protect that information from unauthorized view.
  • CAMB members are careful to dispose of daily waste material and trash featuring client information, generated int he course of loan processing, by shredding or an alternative destructive process, in order to prevent identity thieves or other unauthorized persons from obtaining client data from trash receptacles, or waste disposal sites.
  • CAMB members dispose of loan files, after the regulatory term for file retention has expired, by shredding or alternative destructive process, either by authorized staff or by hiring a professional document destruction firm whose integrity has been reviewed and assured.
  • CAMB members take all necessary steps to safeguard client confidential data stored on magnetic disks or tapes, and that, when such disks or tapes are to be discarded, they are electronically scrubbed or physically destroyed to eliminate any chance data may be recovered by unscrupulous persons.
  • CAMB members are knowledgeable regarding rules, regulations, and laws pertaining to the mortgage industry, and maintain reference materials where such rules, regulations, and laws may be researched and confirmed.
  • CAMB member recognize the constantly changing regulatory environment in which the mortgage industry exists, and keep their knowledge current by being attentive to industry publication, and by participating in seminars, workshops, and classes created to assist them in maintaining compliance expertise.
  • CAMB members monitor the actions and policies of their employees and associates to ensure compliance with local, state, and federal laws pertaining to the industry.
  • CAMB members maintain strict quality control procedures to track compliance and prevent fraud by any of the parties involved in the loan process.
  • CAMB members refrain from engaging in activities beyond the scope of their expertise. If their clients require additional expertise, CAMB members may refer them to a professional who specializes in that field.
  • CAMB members, when recommending or suggesting the use of services of other professionals or entities, disclose any direct interest they have in the professional's or entity's enterprise, or compensation they may realize from the recommendation or referral.
  • CAMB members, whenever they are principals in a transaction involving the purchase or refinance of property, scrupulously inform other parties in the transaction of their professional status, and whether they will be receiving financial gain.
  • CAMB members are fully knowledgeable regarding DRE regulations concerning trust accounts, advance fees, and collection of unearned compensation.

CAMB’s Stand on Predatory Lending
Equal access, full disclosure and objective evaluation

The California Association of Mortgage Brokers supports consumers’ right to be treated fairly and honestly, and to be given equal access, full disclosure, and be subject to an objective evaluation of their creditworthiness.

Ethical mortgage brokers utilize recognized standards including work history, creditworthiness, down payment capacity and debt-to-income ratios to evaluate and process loan applications. They strive to provide consumers with a variety of options based on each consumer’s individual financial situation and long-term goals. Professional loan originators explain all relevant loan information and give consumers the time necessary to make informed and considered decisions regarding their home financing choices. By contrast, predatory lending practices are based on fraud, deception, coercion and greed. The Association unconditionally denounces predatory lending practices.

PREDATORY LENDING is intentionally placing consumers in mortgage loans with significantly worse terms and higher costs than loans offered to similarly qualified consumers, by the majority of mortgage brokers or lenders in the region, for the primary purpose of enriching the loan originator and with little or no regard to the costs to the consumer.

Predatory lending is not only unethical, predatory lending practices are often violations of State and Federal law! Examples include:
  • Fraud: Forged loan documents, falsified tax returns or other documents, overstating income or assets to qualify borrowers for loans they cannot afford, inflated appraisals.
  • Discrimination: Charging higher rates and fees, with less favorable terms, to borrowers based on their race, national origin, age, marital status or neighborhood, than would be charged according to traditional factors such as employment history, credit record, and sufficient income to make required mortgage payments.
  • Misrepresentation: The costs or loan terms at closing are not as advertised, or as presented at the time of application, and which are not properly disclosed prior to closing as mandated by law.
  • Bait and Switch: Qualified borrowers are steered away from affordable options for the express purpose of increasing fee income to the unethical loan originator.
  • Non-Disclosure: Key costs, fees, and terms are not disclosed, or inaccurately or only partially disclosed in violation of law and State and Federal lending regulations.
To protect consumers from falling victim to predatory lending practices, the California Association of Mortgage Brokers encourages its members to advise borrowers to:
  • Never sign a blank document.
  • Read all documents carefully and ask questions. Do not be hurried into signing anything you do not clearly understand. Stop the entire transaction if you feel you are not getting clear answers.
  • Be wary of telephone, mail or e-mail solicitations, especially promises that seem "too good to be true."  Experience shows they probably are.
  • Do not be pressured into applying for more money than you can reasonably be expected to pay back according to the terms of your loan.
  • Get copies of all loan documents, especially anything you have signed.
  • Whenever possible, seek recommendations from friends, associates, and other trusted advisors, to assist in selecting a broker or lender.
Consumer complaints may be directed to CAMB, where CAMB staff and the Best Practices and Professional Standards Committee will attempt to resolve the issue, or refer the consumer to the regulatory agency with responsibility for, and authority over, the area of dispute.

If you would like to file a complaint click here.

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