Reverse Mortgage Trade Group Issues Ethics Papers

The National Reverse Mortgage Lenders Association has created two ethics advisories, one that deals with expected standards and practices in selling other financial products and the other creates standards for lead generation activities. "Ethical Offers of Other Financial and Insurance Products and Services" discusses ethical practices in which reverse mortgage originators may refer, recommend, originate or sell other financial or insurance products. This guidance includes a framework for implementing the relevant provisions of the Housing and Economic Recovery Act of 2008 requirements for firewalls and safeguards in offering other financial and insurance products. Important points here include the need to act in the client's best interest and the need to provide a bona fide advantage to the client, NRMLA said. The advisory titled "Lead Generation State Licensing Requirements and Ethical Advertising" also outlines the NRMLA Ethics Committee's intention to take action, including reporting to appropriate government authorities and the public naming of entities that are dismissed in accordance with the "NRMLA Code of Ethics and Professional Responsibility." Liz Scholz, the chief operating officer of NRMLA, declared the group "will continue to move in the direction of self-regulating, enforcing and taking action against any unethical activity as the integrity and reputation of our industry depend on this. We urge members and non-members to report any ethical infractions or concerns to NRMLA for further investigation."