A mortgage agent finds that a client qualifies for two very similar mortgage products from different lenders, but one offers the agent a significantly higher commission. What should the agent do?

Question: A mortgage agent finds that a client qualifies for two very similar mortgage products from different lenders, but one offers the agent a significantly higher commission. What should the agent do?

Answer options:

• Recommend the product with the higher commission, as it benefits the agent.
• Only present the product with the higher commission to the client. ✅ Present both options fairly, disclosing the difference in compensation, and advise the client on the most suitable product based on their best interests, not commission.
• Tell the client to choose what they prefer and not mention commission differences.

Correct answer: Present both options fairly, disclosing the difference in compensation, and advise the client on the most suitable product based on their best interests, not commission.

Explanation: This scenario presents a clear conflict of interest. The agent is ethically and legally obligated to disclose the compensation difference and to prioritize the client's best interests, ensuring the recommendation is based on suitability for the client, not personal gain.