Question

A potential client is shopping around for a competitive rate and a 15-day lead time to close. The brokerage you work for offers highly competitive rates, has an average lead to close time of 30 days, and a fast lead to close time of 21 days. Understanding these figures, you tell the client you can meet their demands and secure their business. This action is:

Answer 1

Legal but unethical

Step-by-step explanation:

It is unethical to overpromise just to secure a loan. If you cannot meet the demand of the client, do not tell the borrower you can.

There are several Standards and Ethics Committee established a Code of Ethics and Professional Responsibility . This was set up to aid the ethical framework that every company that is a member and their employees must follow. They usually sign a copy of the Code of Ethics & Professional Responsibility when joining or renewing membership.

The Standards and Ethics Committee has different advisory views to help clarify some parts of the Code of Ethics.