A mortgage agent refers a client to a specific lender where the agent's spouse is a senior executive. Which of the following is the most appropriate action for the mortgage agent to take?

Question: A mortgage agent refers a client to a specific lender where the agent's spouse is a senior executive. Which of the following is the most appropriate action for the mortgage agent to take?

Answer options: ✅ Disclose the relationship to the client and obtain their informed consent before proceeding.

• Proceed with the referral as the spouse's position does not directly benefit the agent.
• Refer the client to a different lender only if the client expresses concern.
• Keep the relationship confidential to avoid influencing the client's decision.

Correct answer: Disclose the relationship to the client and obtain their informed consent before proceeding.

Explanation: Mortgage agents are required under FSRA rules to disclose any potential conflict of interest to their clients. This includes relationships that could influence the agent's advice or the client's decision, ensuring transparency and ethical conduct.