In mortgage practice, which is an example of fiduciary duty?

• A. Disclosure, Competency, Confidentiality, Obedience, Loyalty, Accountability
• B. Camouflage marketing
• C. Avoiding client contact
• D. Withholding information

Answer: (A)

Fiduciary duty in mortgage practice means acting in the client’s best interests and maintaining trust by handling their information, decisions, and welfare with integrity. This is shown through disclosure of all material facts, which ensures the client can make informed choices; confidentiality of the client’s personal and financial information; and a level of competency so advice and actions are knowledgeable and careful. Loyalty and accountability reinforce that the professional prioritizes the client’s interests and takes responsibility for outcomes, including being honest about risks and mistakes. Obedience, in this context, means following lawful client instructions while staying within ethical and legal limits, always aiming to protect the client’s interests.

Options that misuse marketing, sever client communication, or hide information do not fit fiduciary duty. Deceptive or misleading tactics violate trust; avoiding contact prevents proper guidance and support; withholding information directly breaches the duty to disclose and to act loyally in the client’s best interest.