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CMPS Code of
Ethics
CMPS 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.
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..
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
mortgage planning 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 mortgage
planning relationships with clients when CMPS
members are contacted directly by the client of
another CMPS member regarding the creation of a
mortgage planning 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 mortgage professionals or CMPS members.
Code of Conduct 3.2
When sought or brought in
by a referral partner to jointly consult or provide
mortgage planning 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.
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