Ceritified
Mortgage Planning Specialist
professionals have agreed to follow the
CMPS Code of Ethics. This means that:
- You can be assured that you will
be treated very well when dealing
with a CMPS professional.
- If you have a complaint or
concern about a CMPS professional,
your concerns will be investigated
by the CMPS Institute if you
fill out this form.
CMPS Code of Ethics & Professional
Responsibility:
Preamble and Applicability
The Code of Ethics
and Professional Responsibility (Code of
Ethics) has been adopted by Certified
Mortgage Planning Specialist Institute
(CMPS Institute) to provide principles
and rules to all persons whom it has
recognized and certified to use the CMPSTM
and CERTIFIED MORTGAGE PLANNING
SPECIALISTTM certification
marks (collectively "the marks"). CMPS
Institute determines who is certified
and thus authorized to use the marks.
Implicit in the acceptance of this
authorization is an obligation not only
to comply with the mandates and
requirements of all applicable laws and
regulations but also to take
responsibility to act in an ethical and
professionally responsible manner in all
professional services and activities.
For purposes of this Code of Ethics, a
person recognized and certified by CMPS
Institute to use the marks is called a
CMPS member. This Code of Ethics applies
to CMPS members actively involved in the
practice of personal mortgage planning,
in other areas of financial services, in
industry, in related professions, in
government, in education or in any other
professional activity in which the marks
are used in the performance of
professional responsibilities. For
purposes of this Code of Ethics, the
term CMPS member shall be deemed to
include current certified individuals
and those who have been certified in the
past and retain the right to reinstate
their CMPS certification by passing the
current CMPS Certification Examination.
This Code of Ethics does not impose on
CMPS members the duty of learning or
disclosing technical facts pertaining to
taxation, real estate law, or financial
advice involving the real estate or
financial markets. Home owners, home
buyers and real estate investors are
advised to seek qualified legal, tax and
investment counsel whenever engaging in
mortgage and real estate decisions. When
enforcing this Code of Ethics, the CMPS
Institute will seek to impose standards
reflecting what can reasonably be
expected from a mortgage advisor when
making recommendations involving a
client's cash flow and real estate
equity.
Accepting the standards set forth in
this Code of Ethics as their own, CMPS
members pledge to observe its spirit in
all of their activities and to conduct
their business in accordance with the
tenets set forth below.
Compliance:
CMPS Institute
requires adherence to this Code Of
Ethics by all CMPS members. Compliance
with the Code Of Ethics, individually
and by the profession as a whole,
depends on each CMPS member's knowledge
of and voluntary compliance with the
Code Of Ethics, on the influence of
fellow professionals and public opinion,
and on disciplinary proceedings, when
necessary, involving CMPS members who
fail to comply with the applicable
provisions of the Code Of Ethics. To
register a complaint against a CMPS
member, please
click here and submit the complaint
to the CMPS Institute.
In filing a charge of an alleged
violation of the Code of Ethics by a
CMPS member, the charge must be filed as
an alleged violation of one or more
Codes of Conduct. The Statement of
Commitment may not be cited as the basis
of the complaint, only in support of the
charge. The Statement of Commitment
serves to clarify the ethical
obligations imposed by the various Codes
of Conduct. Modifications to existing
Codes of Conduct and additional new
Statements of Commitment are approved
from time to time. Readers are cautioned
to ensure that the most recent
publications are utilized. Once a
complaint is submitted, it is reviewed
by the Ethics committee of the CMPS
Institute and appropriate disciplinary
action will be taken. Disciplinary
action can include revocation of CMPS
membership and revocation of the ability
to use the CMPS Certification mark.
Statement of Commitment:
In delivering
mortgage planning advice to home owners,
home buyers and real estate investors,
CMPS members are committed to:
1. Ask questions and listen to our
clients in order to fully understand
their needs.
2. Create mortgage solutions that
complement our clients' overall
financial strategy, and allow them to
most effectively accomplish their short
and long term financial goals.
3. Be sensitive to the fears that many
homeowners have about obtaining a
mortgage loan and earn their confidence
as a trusted advisor.
4. Respect our clients' time and
minimize the amount of effort required
of them by applying our knowledge,
experience, and resourcefulness.
5. Use state-of-the-art technology to
complement our customer service, making
adjustments when necessary to avoid
overwhelming our clients who are less
technically proficient.
6. Communicate regularly and proactively
with our clients to keep them informed
of the status of the loan and to reduce
the stress that is associated with
uncertainty.
7. Ensure smooth, on time closings with
anticipated costs and terms.
8. Provide our clients the luxury of
home loans in the future with little
effort on their part, by means of an
Annual Mortgage Review.
9. Measure our success by our client's
willingness to confidently recommend us.
10. Take full responsibility for our
actions and be honest at all times.
11. Seek to improve the quality of
service we provide by encouraging each
client to critically evaluate our
performance.
Duties to Clients - Code of
Conduct:
Code of Conduct 1.1
CMPS members shall
not deliberately mislead the client as
to the interest rate or closing costs
associated with the recommended mortgage
transaction(s). CMPS members shall avoid
exaggeration, misrepresentation, or
concealment of pertinent facts relating
to the transaction, closing costs, fees,
points, loan amount, loan program,
mortgage strategy or interest rate. This
includes reasonable explanation of the
risks involved in reverse mortgages,
interest only, deferred interest and
adjustable rate mortgages.
Code of Conduct 1.2
When advising
clients on mortgage, cash flow or home
equity management strategies, CMPS
members shall exercise due diligence and
make reasonable efforts to protect the
client against reasonably foreseeable
financial and other losses.
Code of Conduct 1.3
CMPS members shall
preserve confidential information (as
defined by state and federal law)
provided by their clients in the course
of any mortgage planning relationship.
This commitment to preserve confidential
client information continues after
termination of the mortgage planning
relationship. CMPS members shall not
knowingly, during or following the
termination of professional
relationships with their clients:
• Reveal confidential client
information; or,
• Use confidential client information to
the disadvantage of clients; or,
• Use confidential client information
for the CMPS member's advantage or the
advantage of a third party unless:
• Client consents after full disclosure;
or,
• CMPS member is required by court
order; or,
• It is the intention of the client to
commit a crime and the information is
necessary to prevent the crime; or,
• It is necessary to defend a CMPS
member or the CMPS member's employees or
associates against an accusation of
wrongful conduct.
Client information legally shared by the
CMPS member's employer under Federal and
State Privacy Acts shall not apply as a
violation of the CMPS Code of Ethics by
the CMPS member.
Code of Conduct 1.4
When advising
clients on mortgage, cash flow or home
equity management strategies, CMPS
members must advise clients of
additional compensation to be earned by
the mortgage planner by recommending
third party or investment products or
services, if such is the case. CMPS
members shall not accept any commission,
rebate, or profit on expenditures made
for their client, without the client's
knowledge and consent. When recommending
third party products or services (e.g.
homeowner's insurance, warranty
programs, real estate brokerage, title
insurance, investment products, etc.)
CMPS members shall disclose to the
client or customer to whom the
recommendation is made any financial
benefits or fees the CMPS member or firm
may receive as a direct result of such
recommendation. CMPS members shall not
recommend or suggest to a client or a
customer the use of services of another
organization or business entity in which
they have a direct interest without
disclosing such interest at the time of
the recommendation or suggestion.
Code of Conduct 1.5
When working with
appraisers, CMPS members should not
engage in practices whereby the fees for
preparing appraisals or other valuations
are contingent upon the amount of the
appraisal or valuation.
Code of Conduct 1.6
CMPS members shall
advise clients to seek legal, tax, and
investment advice from qualified
advisors prior to making decisions
involving mortgages or real estate. CMPS
members shall not engage in activities
that constitute the unauthorized
practice of law and shall recommend that
legal counsel be obtained whenever the
interest of the client requires it.
Code of Conduct 1.7
CMPS members shall
not deny equal professional services to
any person for reasons of race, color,
religion, sex, handicap, familial
status, or national origin. CMPS members
shall not be parties to any plan or
agreement to discriminate against a
person or persons on the basis of race,
color, religion, sex, handicap, familial
status, or national origin.
Code of Conduct 1.8
When CMPS members
provide consultative services to clients
which involve advice or counsel for a
fee (not a commission), such advice
shall be rendered in an objective manner
and the fee shall not be contingent on
the substance of the advice or counsel
given. If brokerage or transaction
services are to be provided in addition
to consultative services, a separate
compensation may be paid with prior
agreement between the client and CMPS
member.
Duties to CMPS Members & the
CMPS Institute -
Code of Conduct:
Code of Conduct 2.1
When seeking
information from another CMPS member
concerning their business practices or
area of expertise, CMPS members shall
keep such information confidential and
use it only in their own mortgage
planning practice. CMPS members shall
not profit by selling the systems or
business ideas of other CMPS members.
Code of Conduct 2.2
When sought or
brought in by another CMPS member to
jointly consult or provide services for their client, CMPS
members shall not solicit that client
for products or services inconsistent
with the scope of services sought by the
other CMPS member. However, this does
not prohibit CMPS members from engaging
in relationships with
clients when CMPS members are contacted
directly by the client of another CMPS
member regarding the creation of a
relationship, and CMPS
members have not directly or indirectly
initiated such discussions.
Code of Conduct 2.3
Only CMPS members
may use the CMPS designation in
advertising or other representations to
the public. Potential CMPS members who
have not yet passed the CMPS exam may
not refer to their status in advertising
and other representations to the public
as having any affiliation with the CMPS
Institute. CMPS members may not present
themselves as holding any professional
certification, including the CMPS
designation, to which they are not
entitled.
Code of Conduct 2.4
If charged with
unethical practice or asked to present
evidence or to cooperate in any other
way, in any professional standards
proceeding or investigation, CMPS
members shall place all pertinent facts
before the proper committees of the CMPS
Institute and shall take no action to
disrupt or obstruct such processes. CMPS
members participating in the Ethics
Committee shall not make any
unauthorized disclosure or dissemination
of the allegations, findings, or
decision developed in connection with an
ethics review, hearing or appeal.
Code of Conduct 2.5
CMPS members shall
not obstruct the CMPS Institute's
investigative or professional standards
proceedings by instituting or
threatening to institute actions for
libel, slander or defamation against any
party to a professional standards
proceeding or their witnesses based on
the filing of an ethics complaint, or
testimony given before the Ethics
Committee.
Code of Conduct 2.6
CMPS members shall
not knowingly or recklessly file false
or unfounded ethics complaints. CMPS
members shall not intentionally impede
the CMPS Institute's investigative or
disciplinary proceedings by filing
multiple ethics complaints based on the
same event or transaction.
Code of Conduct 2.7
CMPS members shall
not knowingly or recklessly make false
or misleading statements about
competitors, their businesses, or their
business practices.
Code of Conduct 2.8
When taking the
CMPS exam, potential CMPS members shall
not:
• Print out the exam and/or distribute
or communicate the questions, answers
and/or multiple choice options to others
• Have someone else take the exam on
your behalf
• Have another person provide the
answers to you, for you or with you
• Help someone else pass the exam by
providing answers to you, for you or
with you
• Pass the exam by any means other than
your own individual merits and abilities
When fulfilling the continuing education
(CE) requirements, CMPS members shall
not:
• Have someone else participate in the
CE activity on your behalf
• Participate in the CE activity on
behalf of another CMPS member
• Fulfill the CE requirements by any
means other than your own individual
merits and abilities
Duties to Referral Partners - Code of
Conduct:
Code of Conduct 3.1
In accordance with
the Real Estate Settlement Procedures
Act (RESPA), CMPS members shall not
compensate nor offer to compensate,
directly or indirectly, any third party
for a client referral or mortgage
transaction referral provided to the
CMPS member. CMPS members shall not
receive, directly or indirectly, any
form of compensation for referrals
provided by them to other
professionals or CMPS members.
Code of Conduct 3.2
When sought or
brought in by a referral partner to
jointly consult or provide services for their client, CMPS
members shall not solicit that client
for products or services inconsistent
with the scope of services sought by the
referral partner. CMPS members shall not
use information obtained from referral
partners to solicit the clients of the
referral partners for business unless
such use is authorized by the referral
partner. |
