Scenario 11: When a mortgage agent receives a referral fee from a third party related to a client's mortgage, the agent MUST:

Question: Scenario 11: When a mortgage agent receives a referral fee from a third party related to a client's mortgage, the agent MUST:

Answer options:

• Keep the fee confidential to protect the third party ✅ Disclose the conflict of interest in writing to the borrower before they sign
• Pay the fee back to the lender
• Disclose only if the borrower asks

Correct answer: Disclose the conflict of interest in writing to the borrower before they sign

Explanation: Any potential or actual conflict of interest, including referral fees, must be disclosed in writing to the borrower before the borrower signs the mortgage application or agreement. The correct answer is "Disclose the conflict of interest in writing to the borrower before they sign". This capacity-fill scenario 11 reinforces the same competency for the mortgage-broker bank and follows the certified explanation standard.