Is a lender’s volume rebate a conflict of interest?
A lender’s volume rebate may create the appearance that business is being placed to take advantage of the rebate. Mortgage Brokerages must disclose the existence of incentives that might appear to influence the Brokerage and its Mortgage Brokers and Agents to put their own interests ahead of the client’s. If in doubt, disclose. In its written disclosure, a Mortgage Brokerage must disclose the nature of its relationships and if it may/will receive fees/benefits from other individuals/companies.
