FNS50315 Diploma of Finance and Mortgage Broking Management

Topic: FNSCUS501 Develop and nurture relationships with clients, other professionals and third party referrers

Question:

Mortgage brokers generally provide their services free of charge to interested borrowers, and are instead compensated by lenders.

a) How might this arrangement lead to a conflict of interest?

b) What legal rights does a client of a mortgage broker have?

(Outline the key requirements of relevant legislation, regulation and industry/professional codes of practice that apply to relationship management).