What is an example of prohibited conduct for mortgage professionals?

Charging hidden fees is indeed an example of prohibited conduct for mortgage professionals. Transparency is essential in the mortgage industry, and all fees associated with a mortgage transaction must be clearly disclosed to the consumer. Hidden fees undermine the trust between the lender and borrower and can lead to financial harm for the consumer. Regulations, such as the Truth in Lending Act and the Real Estate Settlement Procedures Act, are designed to protect consumers by requiring clear and upfront disclosures regarding all costs associated with a mortgage. This ensures that borrowers can make informed decisions and understand the total cost of the mortgage they are agreeing to.

In contrast, offering free consultations, providing clear contract terms, and adhering to legal compliance all represent best practices in the industry. These actions promote transparency, integrity, and consumer protection, which are crucial for maintaining ethical standards in mortgage transactions.