Scenario 6: A mortgage agent changes brokerages. What must happen regarding their existing client files?

Question: Scenario 6: A mortgage agent changes brokerages. What must happen regarding their existing client files?

Answer options:

• The agent must destroy all client files from the previous brokerage.
• The agent automatically takes all client files to the new brokerage. ✅ The previous brokerage retains the client files, and the agent must obtain written consent from each client to transfer their file to the new brokerage.
• The agent must notify all clients verbally within 24 hours of the move.

Correct answer: The previous brokerage retains the client files, and the agent must obtain written consent from each client to transfer their file to the new brokerage.

Explanation: Client files belong to the brokerage, not the individual agent. When an agent moves, specific procedures, including obtaining client consent for file transfer, must be followed to ensure privacy compliance and proper record-keeping. The correct answer is "The previous brokerage retains the client files, and the agent must obtain written consent from each client to transfer their file to the new brokerage.". This capacity-fill scenario 6 reinforces the same competency for the mortgage-broker bank and follows the certified explanation standard.