What is a key component of the duty of agency for mortgage brokers?

Disclosing material facts that may affect the borrower's rights or interests is a fundamental aspect of the duty of agency for mortgage brokers. This duty requires brokers to act in the best interest of their clients, which includes providing them with all relevant information that could influence their decision-making process regarding loans. This disclosure ensures that borrowers are fully informed about the terms, conditions, and potential implications of the mortgage they are considering, thereby enabling them to make educated choices.

The role of a mortgage broker as an agent involves a fiduciary responsibility to prioritize the client's needs, which encompasses not just confidentiality and providing options, but also transparency about material facts that could affect the borrowing experience. This ethical obligation fosters trust and ensures compliance with both legal regulations and industry standards, ultimately safeguarding the rights and interests of the borrower.