Washington State laws governing mortgage brokers/loan originators changed June 12, 2008. Senate Bill 6381 requires that mortgage brokers owe fiduciary duties to their clients. In this new class, we will review the new state law and relevant cases from other states. Mortgage brokers and loan originators will learn the difference between a retail relationship and a fiduciary relationship. We will review historical case studies of informed consent as well as how relationships brokers have with their clients may result from the broker’s conduct. Fiduciary duties may include the duty to disclose all loan information to clients, the duty to act in good faith and to deal fairly with clients such as avoiding the acceptance of fees that may be hidden from your client or failing to disclose an arrangement of splitting a fee. Duties to a client may be elevated when a broker holds special skills, experience, and training that give him or her an advantage over clients.

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