NRMLA ETHICS ADVISORY OPINION 2013-1 Ethical Product Offerings April 18, 2013 The Ethics and Standards Committee (the “Committee”) of the National Reverse Mortgage Lenders Association, the trade association of the reverse mortgage lending industry, enforces the NRMLA Code of Ethics and Responsibility (the “Code of Ethics”). All NRMLA Members are required to comply with the Code of Ethics as a condition of their continued membership in NRMLA. If the Committee determines that a NRMLA Member has not complied with the Code of Ethics, sanctions may be imposed, up to and including the termination of its NRMLA membership. Committee decisions enforcing the Code of Ethics may be made public. The Code of Ethics may be found at www.NRMLAOnline.org. The Committee also interprets the Code of Ethics and, from time to time, may propose changes to it for consideration and approval by the NRMLA Board of Directors. Finally, the Committee periodically issues formal interpretations of the Code of Ethics (“Ethics Advisory Opinions”) for the guidance of NRMLA Members. This Ethics Advisory Opinion 2013-1 addresses Ethical Product Offerings. Rule 106 of the Code of Ethics requires that NRMLA Members 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 of the Code of Ethics requires NRMLA Members to describe to consumers the range of programs and products offered by the Member that may provide a bona fide advantage to such consumers (emphasis added). Rule 502 of the Code of Ethics requires NRMLA Members to provide their products and services to consumers with diligence and due care and in a manner considerate of the interests of such consumers. Rule 301 of the Code of Ethics requires NRMLA Members accurately to describe both the costs and benefits of the products and services presented to consumers. Rules 104 and 105 of the Code of Ethics require NRMLA Members to communicate with consumers in a manner that is fair and not misleading. The Committee has concluded, for reasons described below, that it is appropriate to amend Rule 107 of the Code of Ethics to require that NRMLA Members, consistent with their obligation to 54
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