Canon of Ethics
The Mortgage Bankers Association of Mississippi subscribes to and endorses the “Cannon of Ethics and Standards of Practice” as adopted by the Mortgage Bankers Association of America as follows:
WHEREAS, the purpose for which the Mortgage Bankers Association of America was organized as stated in the Corporate Charter, are:
Nurture the mortgage banking correspondent system; Improve and expand the performance of the secondary market for mortgages; Encourage sound and ethical business practices among its members; Conduct research in financing techniques that improve the effectiveness of the mortgage bankers participation in the nationwide market for mortgages; Inform its members of changes in mortgage laws and lending practices as well as pending legislation that affects the secondary market for mortgages; Sponsor meetings and educational programs; and Cooperation with the public and private agencies in the establishment of sound real estate appraisal practices.
WHEREAS, the members of this Association are mindful that sound, usefulness, prosperity, and future of mortgage banking depends upon the honor, integrity and fidelity of all personnel engaged in the business:
THEREFORE, BE IT RESOLVED, that each member of this association pledges to observe and maintain the following standards of conduct in dealing with the public and with other members.
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.
Members shall act in conformity with all 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.
Members shall act in a manner that recognizes that integrity and confidence are essential in the mortgage banking business.
Members shall accord oral agreement the same sanctity given to written agreements.
Members shall not breach or avoid an agreement of commitment.
Members shall encourage healthy competition in the mortgage banking business.
Members shall conduct their business without regard to the race, color, sex, religion, marital status, national origin or age of the persons with who they deal.
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.
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.
Members shall not quote to a prospective borrower interest rates or other loan items that are not likely of realization.
Members shall make all reasonable efforts to process loan application and advise applicants of approval or disapproval promptly and to close and disburse in a timely manner.
Members shall use all efforts available in servicing investments entrusted to their care effectively to discharge their obligations to both the investor and debtor.
Members shall maintain all monies that are received as escrow, reserve, or impound accounts in a prudent and identifiable manner and shall disburse these funds for the purpose for which they were received.
Members shall corporate 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.