Preamble and Applicability
The NRMLA Code of Ethics and Professional
Responsibility (Code of Ethics) describes
Values shared and Rules applicable to all
NRMLA Members. Under the Code of Ethics,
NRMLA Members generally are responsible and
will be held responsible for the actions or
failures to act of their officers,
directors, employees, agents and
representatives. NRMLA Members unable or
unwilling to commit and to adhere to the
Values and comply with the Rules, or that
are determined by the NRMLA Ethics and
Standards Committee not to have so complied,
may not be NRMLA Members.
This Codes of Ethics does not describe, nor
does it attempt to describe, the full range
of conduct and behavior to which NRMLA
Members may subscribe or adhere as they
participate in the reverse mortgage
marketplace and interact with consumers in
an ethical, professionally responsible, and
lawful manner. What the Code of Ethics does
describe are the Values and Rules applicable
to NRMLA Members if they are to be and
remain NRMLA Members. Accordingly, the Code
of Ethics does not define the standards and
behavior of a NRMLA Member for the purpose
of determining its civil or criminal
liability.
This Code of Ethics also does not impose on
NRMLA Members the duty of learning or
disclosing technical facts pertaining to
taxation, real estate law, retirement
planning or financial advice involving the
real estate or financial markets.
This Codes of Ethics also does not confer
any rights upon any NRMLA Member or any
complainant or third party.
Composition and Scope
The Code of Ethics is divided into two
parts: Part 1 – Values and Part II – Rules.
The Values convey the ethical and
professional principles that NRMLA Members
are expected to portray in all business and
professional interactions. The Rules address
the guidelines and standards of ethical and
professional behavior applicable to NRMLA
Members.
Compliance
Member organizations are required to adhere
to the Values and comply with the Rules of
the Code of Ethics if they are to be and
remain NMRLA Members. The Ethics and
Standards Committee will investigate, review
and take appropriate action with respect to
alleged violations of the Code of Ethics by
NRMLA Members, under the policies and
procedures set forth in Appendix A.
Part 1 – Values
NRMLA Members are mindful that the
soundness, usefulness, prosperity and future
of our industry depend upon their honor and
integrity, and on the manner in which they
interact with each other and with the
seniors whose interests they serve.
Accordingly, each NRMLA Member agrees to
observe and maintain and adhere to the
following Values.
Value 1: Fairness
NRMLA Members shall treat consumers with
respect and dignity, and in a manner that is
fair, reasonable and as they would want to
be treated.
Value 2: Confidentiality
NRMLA Members shall appropriately respect,
protect, preserve and safeguard the privacy
and confidentiality of information obtained
from and about consumers.
Value 3: Integrity
NRMLA Members shall act with integrity by
adhering to the letter and spirit of this
Code of Ethics, which includes disclosing
potential conflicts of interest to consumers
in a timely basis..
Value 4: Competence
NMRLA Members shall provide services to
consumers in a competent manner, acquiring
and maintaining necessary and appropriate
knowledge, skills and experience to do so,
and referring consumers to others who
possess such knowledge, skills and
experience when they are unable to do so.
Value 5: Diligence
NRMLA Members shall provide services to
consumers with diligence and due care,
promptly, thoughtfully, in a manner
considerate of the interests of consumers
and fully in compliance with all applicable
legal and regulatory requirements.
Value 6: Professionalism
NRMLA Members’ conduct shall reflect
positively on NRMLA, the profession and the
industry.
Part II – Rules
Consistent with the Values described in Part
I, NRMLA Members agree to comply with the
following Rules (as applicable).
Rules Related to the Value of Fairness
Rule 101
NRMLA Members shall timely and accurately
describe to consumers:
• Material information relevant to the
relationship, including the Member’s
business affiliation, contact information,
and the scope of and limitations on the
Member’s authority to act; and
• The information required by all laws
applicable to the relationship in a manner
complying with such laws, including
counseling agency contact information,
estimates of fees and charges, and
relationships with others who may be
assisting or providing related services.
Rule 102
NRMLA Members compensation shall be
reasonable in amount and clearly and timely
described to consumers. Estimates shall be
clearly identified as such and be based on
reasonable assumptions.
Rule 103
NRMLA Members directly or indirectly
offering or providing goods or services to
consumers (including, for example, insurance
or investment products) in conjunction with
or that are related to their reverse
mortgage lending activities for such
consumers, shall do so only in a manner
consistent with applicable law and under
terms and conditions that are clearly and
timely described to such consumers.
Rule 104
NRMLA Members shall not, directly or
indirectly, solicit or communicate with
consumers through false or misleading or
deceptive or unfair communications or
advertisements or in any manner inconsistent
with applicable law. In such communications
and advertisements, NRMLA Members shall not
refer to third parties (including, for
example, HUD or the FHA or the federal
government or the AARP) unless such third
parties have agreed to be so referred to
therein. A communication or advertisement on
behalf of NRMLA Member clearly shall
identify that NRMLA Member.
Rule 105
NRMLA Members shall not engage in conduct
involving dishonesty, fraud, deceit or
misrepresentation, or knowingly make a
material false or misleading statement to
consumers or others.
Rule 106
NRMLA Members shall offer and provide their
products and services to all consumers who
may be eligible or qualified for them, and
in compliance with all applicable fair
housing and fair lending laws.
Rule 107
NRMLA Members shall describe to consumers
the range of programs and products offered
by the Member that may provide a bona fide
advantage to such consumers.
Rule 108
In appropriate cases, NRMLA Members shall
encourage consumers to review contemplated
transactions with their family members or
trusted advisors, and shall reasonably
cooperate in such reviews.
Rule 109
NRMLA Members shall make a good-faith effort
to resolve concerns received from consumers
about the products and services they offer
or provide to them.
Rules Related to the Value of
Confidentiality
Rule 201
NRMLA Members shall take reasonable steps
(including implementing appropriate training
and compliance procedures) to help assure
that the privacy of and confidentiality of
information obtained from and about
consumers is respected, protected, honored
and safeguarded, and shall do so in a manner
consistent with applicable law.
Rules Related to the Value of Integrity
Rule 301
NRMLA Members shall accurately describe both
the costs and benefits of the products and
services presented to consumers.
Rule 302
NMRLA Members shall not require directly or
indirectly that products or services other
than the reverse mortgage loans they offer
or provide, also must be purchased by
consumers in order to obtain reverse
mortgage loans from or through them.
Rule 303
Other than as appropriate under the
circumstances (including for example to pay
third party costs, make prior loan payoffs
or fund set-asides directly related to
reverse mortgage transactions), NRMLA
Members shall arrange for the disbursements
of reverse mortgage loan proceeds directly
to such consumers.
Rule 304
Material potential conflicts of interests
involving NRMLA Members and consumers shall
timely and accurately be described to
consumers prior to the rendering of material
services by such Member so that they,
assisted as appropriate by family members,
trusted advisors and counselors, reasonably
may assess whether and the circumstances
under which they may choose to do business
with such NRMLA Members.
Rules Related to the Value of Competence
Rule 401
NRMLA Members shall acquire and maintain the
necessary and appropriate knowledge, skills
and experience required to competently offer
and provide their products and services in a
manner consistent with this Code of Ethics
and applicable law, including, as
applicable, in the origination, processing,
underwriting, closing and servicing of
reverse mortgage loans.
Rule 402
NRMLA Members shall advise consumers to seek
legal, tax, and investment counsel and
advice, if it may reasonable appears to be
in the interests of such consumers that they
do so, prior to making decisions involving
reverse mortgages. NRMLA Members not
qualified and appropriately licensed to
provide such counsel and advice to consumers
shall not do so, and shall, instead, refer
such consumers to those who are.
Rules Related to the Value of Diligence
Rule 501
NRMLA Members shall exercise reasonable
efforts to secure sufficient information to
determine the consumer’s needs and
objectives.
Rule 502
NRMLA Members shall provide their products
and services to consumers with diligence and
due care and in a manner considerate of the
interests of such consumers.
Rules Related to the Value of
Professionalism
Rule 601
NRMLA Members shall take reasonable steps to
help assure that their employees understand
and act in a manner consistent with the
requirements of this Code of Ethics.
Rule 602
NRMLA Members shall neither accept nor
condone actions or failures to act of other
NRMLA Members that are inconsistent with
this Code of Conduct. NRMLA Members
knowledgeable about potential material
violations of this Code of Ethics by others
subject to its provisions strongly are
encouraged to bring such potential
violations to the attention of NRMLA in the
manner described in this Code of Ethics.
Rule 603
NRMLA Members shall not bring or threaten to
bring complaints under this Code of Ethics,
or make or threaten to make use of this Code
of Ethics, for no substantial purpose other
than to harass, maliciously injure,
embarrass and/or unfairly burden another
NRMLA Member.
Rule 604
NRMLA Members shall pay to NRMLA amounts due
and owing to it related to their membership
in NRMLA on a timely basis.
Rule 605
NRMLA Members shall comply with all
applicable regulatory requirements include
provisions of the Federal Real Estate
Settlement Procedures Act barring among
other things referral fees and kickbacks,
state mortgage regulatory provisions
requiring licensing, and, with respect to
FHA-insured HECM reverse mortgage loans, FHA
requirements regarding licensing and
employees and restricting arrangements with
third parties.
Rule 606
NRMLA Members reasonably shall cooperate
with NRMLA and its Standards and Ethics
Committee in their consideration of
complaints under this Code of Ethics made
against or involving them. NRMLA Members
shall honor the confidentiality requirements
described in Appendix A of the Code of
Ethics that are applicable to them.
Rule 607
NRMLA Members shall employ individuals who
have passed a background check and are
determined by them to be of good moral
character.
Appendix “A”
NRMLA’s Policies and Procedures: Code of
Ethics Complaints Against Members
The President of NRMLA will receive and
review complaints that NRMLA Members have
violated the NRMLA Code of Ethics and take
action, including referring complaints to
the Co-Chairs of the NRMLA Ethics and
Standards Committee for consideration by the
Committee, pursuant to the following
policies and procedures. The President of
NRMLA, in consultation with the General
Counsel of NRMLA as appropriate, shall have
the discretion to vary these procedures when
it is determined that to do so would be in
the best interests of NRMLA and its Members.
These policies and procedures do not confer
any rights upon any NRMLA Member or any
complainant or third party.
I. Source of Complaints
A. Complaints May Originate From:
1. Members (including but not limited to the
President of NRMLA and the Co-Chairs and
Members of the Ethics and Standards
Committee), or
2. Non-Members (including consumers)
B. Complaints May Be Against:
1. Members, or
2. Non-Members
II. Receipt and Review of Complaints
A. Complaints initially will be referred to
and reviewed by the President of NRMLA.
B. NRMLA shall not review or act upon
anonymous complaints. (However, in limited
circumstances, as described below, NRMLA may
respond to complaints without further
identifying the complainant.)
C. Complaints against Non-Members
NRMLA will respond to complaints against
Non-Members by informing the complainant
that NRMLA is unable to take action in
response to such complaints, and, where
appropriate, refer the complaining party to
an appropriate agency or authority if it
appears that they may be able to be of
assistance.
D. Complaints against Members
1. Complaints against Members should contain
sufficient facts to permit an “initial
determination” to be made by the President
of NRMLA.
(a) If, in the judgment of the President,
the complaint contains sufficient facts upon
which the President may make an “initial
determination,” the President shall take one
of two actions:
(i) If the complainant does not state a
complaint against a Member of the type or
scope that warrants further action, the
President shall inform the complainant of
that determination by the President and the
decision of the President shall be final.
The President concurrently shall report all
such determinations to the Co-Chairs of the
Ethics and Standards Committee, including a
brief statement of the reasons for the
determination.
(ii) If the complainant states a complaint
against a Member of the type and scope that
warrants further action, the President shall
seek and secure from the complainant the
complainant’s agreement that the written
complaint or any statements contained or
information included therein (including but
not limited to the identity of the
complainant) may be shared with the Member
that is the subject of the complaint or any
other party deemed necessary and appropriate
to assist in better understanding or
resolving the complaint, including members
of the Ethics and Standards Committee, the
Board of Directors, and General Counsel.
(b) If, in the judgment of the President,
the complainant does not recite and include
sufficient facts or allegations upon which
the President may make an ”initial
determination,” NRMLA will notify the
complaining party that additional facts are
required and provide an additional ten (10)
business days from the date of such letter
for the complainant to supplement the
complaint. In any event, before forwarding a
complaint to the Ethics and Standards
Committee or any other person or entity, the
President shall secure the agreement of the
complainant that the written complaint and
any statements contained or information
included therein (including but not limited
to the identity of the complainant) may be
shared with the Member that is the subject
of the complaint or any other party deemed
necessary and appropriate to assist in
better understanding or resolving the
complaint, including members of the Ethics
and Standards Committee, the Board of
Directors, and General Counsel. Absent
special circumstances, a refusal by a
complainant to agree to such sharing of the
complaint (with the identify of the
complainant redacted as requested and
appropriate) will result in an initial
determination by the President that NRMLA
will take no further action in response to
the complaint, and the notification to the
complainant (and the Ethics and Standards
Committee Co-Chairs) of that final
determination by the President
2. Upon receipt of the complainant’s
affirmative response to a NRMLA
acknowledgement and letter of agreement, the
President generally shall provide the Member
about which the complaint has been made with
an opportunity to respond to the complaint.
3. Ordinarily, the President will provide
the respondent Member ten (10) business days
to respond in writing. Absent special
circumstances, the failure of a respondent
to deny or explain any material fact alleged
in the complaint within the established
response period will be deemed an admission
of such fact.
4. The President, based on the complaint
and/or the response thereto, and other
investigation and consideration of the
matter as the President deems necessary and
appropriate, shall decide either:
(a) to take no further action in regards to
the complaint, having concluded that it is
not of the type or scope to warrant further
NMRLA action (in which event the President
shall so notify the complainant and the
respondent Member, and the Ethics and
Standards Committee Co-Chairs (accompanied
by a brief explanation of the basis for the
President’s determination); or
(b) to refer the complaint and response and
related materials to the Co-Chairs of the
Ethics and Standards Committee, accompanied
by a brief explanation of the President’s
reasons for so referring the complaint.
III. Review and Action by the Ethics and
Standards Committee
A. Unless either Ethics and Standards
Committee Co-Chair disagrees with President
(in which case the Ethics and Standards
Committee Co-Chair shall so notify the
President and Chair of the Board of
Directors), the Ethics and Standards
Committee shall review the complaint,
response and related information referred
for action by the President.
B. On the basis thereof, and other
investigation and consideration of the
matter as the Ethics and Standards Committee
deems necessary and appropriate, the NRMLA
Ethics and Standards Committee shall
determine whether the NRMLA Code of Ethics
has been violated by the Member that is the
subject of the complaint, and, if so, the
Ethics and Standards Committee shall
determine the action of NRMLA in response
thereto. In general, actions by the Ethics
and Standards Committee against a Member
shall be limited to probation (for a
specified period, during which another Code
of Ethics violation will lead to suspension
or withdrawal of NRMLA Member membership),
suspension of NRMLA Member membership (for a
specified period of time), or withdrawal of
NRMLA Member membership for at least three
years. A copy of the opinion shall be
provided to the complainant, the Member
respondent (with redaction of the
complainant’s name, as appropriate), the
President, and the Co-Chairs of the NRMLA
Board of Directors. Opinions of the NRMLA
Ethics and Standards Committee are final
decisions of NRMLA.
C. The Ethics Committee shall confer with
the President and the General Counsel, as
appropriate, and no adverse action shall be
taken against a Member without the prior
concurrence of the General Counsel that it
is action that NRMLA may take against such
Member under applicable law and NRMLA’s
policies and procedures and this Code of
Ethics.
D. The President of NRMLA and the Co-Chairs
of the Ethics and Standards Committee shall
submit written quarterly reports to the
Board of Directors as to the actions taken
or not taken with respect to complaints
received by the President, and as to
recommendations with respect to appropriate
amendments to these Policies and Procedures,
and the Code of Ethics, as appropriate.
IV. Confidentiality
All Members and NRMLA staff, including but
not limited to the President; the Co-Chairs
and members of the Ethics and Standards
Committee; and members of the Board of
Directors, shall maintain the strict
confidentiality of all complaints,
responses, recommendations and opinions
related to any complaints subject to these
Policies and Procedures and the Code of
Ethics. A violation by any Member of this
requirement for maintaining strict
confidentiality shall be considered by NRMLA
to be a violation by such Member of the Code
of Ethics.
