VMBA CANONS OF ETHICS AND STANDARDS OF PRACTICE

WHEREAS, the purposes for which the Vermont Mortgage Bankers Association was organized are:

"To promote the welfare of the mortgage banking system in the State of Vermont and to improve its services to the community. To encourage among its members sound business practices in the organization, distribution, and servicing of real estate mortgage loans. To sponsor meetings for the discussion of real estate mortgage problems and to sponsor educational and research projects designed to alleviate those problems. To cooperate with public and private agencies and the public at large in all matters relating to sound mortgage banking with the objective of strengthening the economic base of the community."

WHEREAS, the Members of this association are mindful that the soundness, usefulness, prosperity, and future of Mortgage Banking depend upon the honor, integrity, and the fidelity of all personnel engaged in this business.

THEREFORE, BE IT RESOLVED that each Member of this Association pledges to observe and maintain the following standards of conduct in dealing with the public and with other members:

CANON 1

Members shall conduct their business in a professional manner, ensuring that their personnel are knowledgeable in the areas of mortgage banking in which they participate and are acting in compliance with sound industry practices.

CANON 2

Members shall act in conformity with applicable laws and regulations and shall cooperate in every appropriate way with all governmental bodies in the interest of establishing and maintaining an efficient and fair framework for mortgage credit.

CANON 3

Members shall act in a manner that recognizes that integrity and confidence are essential in the mortgage banking business.

CANON 4

Members shall not breach or void an executed agreement or commitment.

CANON 5

Members shall encourage healthy competition in the mortgage banking business.

CANON 6

Members shall conduct their business without regard to the race, color, sex, handicaps,

Religion, marital status, national origin, age or any other basis prohibited by law of the

Persons with whom they deal.

CANON 7

Members shall preserve the integrity of all parts of a loan submission and appraisal report and make full disclosure of all pertinent facts including any interest they may have in the loan project or property.

CANON 8

Members shall not quote to prospective borrower interest rates or other loan terms which are not likely of realization.

CANON 9

Members shall make all reasonable efforts to process loan applications and advise applicants of approval or disapproval promptly and to close and disburse in a timely manner.

CANON 10

Members shall use all efforts available in servicing investments entrusted to their care to effectively discharge their obligations to both investor and debtor.

CANON 11

Members shall maintain all monies which are received as escrow reserve or impound accounts in a prudent and identifiable manner and shall disburse these funds for the purpose for which they were received.

CANON 12

Members shall cooperate with the Ethics and Standards of Practice Committee in furnishing information relative to any investigation of a possible violation of the Canons of Ethics and Standards of Practice.

Violations of, and complaints concerning, the Code of Ethics shall be filed with the Ethics Committee.